UK staycation boom: Short-term holiday lets in high demand
Ever since Prime Minister Boris Johnson revealed the roadmap out of lockdown at the end of February, there has been a surge in searches, enquiries and bookings for short-term holiday lets. UK staycations in self-contained accommodation will be allowed in the second phase of the four-part roadmap.
This could happen from 12 April. However, this will depend on COVID-19 infection rates and the effectiveness of the vaccine rollout. With this news, many are already planning their first trip once it is legal to do so.
The “stay at home” rule has been in place since the beginning of January. Additionally, after three country-wide lockdowns in the past year, many will be itching to get away as soon as possible. This has created a substantial amount of pent-up demand, especially for the spring and summer.
Because of all the extra time we have spent at home, a UK staycation boom is looming. And as short-term holiday lets can require little to no human interaction, it will likely be one of the most attractive holiday accommodation options once lockdown restrictions are lifted.
Other holiday accommodation, such as B&Bs and hotels, are expected to reopen from 17 May. This is also when international travel is expected to be permitted. With uncertainty still surrounding the future of overseas travel, more people will likely stay in the UK this year.
Investing in the short-term holiday let sector
In the past few years, there has been a rise in holidaymakers choosing to stay in private accommodation when they travel. This interest and demand will only accelerate further due to the COVID-19 pandemic. A number of holiday let booking sites are already seeing a significant rise in searches and bookings for holidays in the spring and summer.
When UK staycations are allowed, the short-term holiday let sector is set to see a major boom. Investing in short-term holiday lets can provide high yields, often much higher than traditional buy-to-lets. And 2021 will likely prove to be a great time to invest with the massive amount of pent-up demand.
Additionally, there are even some tax benefits for investing in furnished holiday lets. Investing in short-term holiday lets also has the added bonus of allowing you to own a property in an attractive holiday destination that you can use for your own UK staycations.
Keep in mind that there is more work involved with short-term holiday lets compared to traditional buy-to-lets. However, holiday operators can help with bookings and property management. Investors can even make it a fully hands-off investment if they wish.
Short-term holiday lets can provide a great opportunity to invest in property or to diversify a property investment portfolio. With the strong demand for private holiday accommodation, there is room for further growth in the short-term holiday let sector.
Prime Property Agents has a number of short-term holiday let investment opportunities across the UK, including in holidaying hotspots of North Wales, Cornwall and the Cotswolds. Get in touch for more information.