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Investment potential of holiday lets

Staycations are set to last

Holiday lets are hot property as we all staycation. Holiday lets in UK seaside locations are soaring in popularity, with investors willing to splash out £403,143 on average – nearly two thirds higher than the average house price 5. It seems like savvy buyers are considering the investment potential of holiday lets.

The most popular destination for holiday let investors is the South West at 39%, with Truro and Plymouth taking the two top spots on a list of the top ten postcode areas for holiday let mortgages compiled by one lender. Next up are Wales at 19% and the North West at 12%.

Potential profits
The amount holiday let owners are able to charge per night has also increased substantially in the past year due to heightened demand, with a study6 finding prices had increased by 35% on average between 2020 and 2021– although one Brighton owner was demanding 140% extra!

Worth it in the long term?
Some would-be investors might be wondering whether it’s worth the outlay, considering that international travel is likely to resume in the next year. They might be reassured by a survey suggesting that 73% of holidaymakers plan to staycation in the UK even after international travel restrictions are lifted7 so maybe  it is worth thinking about the investment potential of holiday lets.

There are many options for financing a holiday let purchase but before you jump straight, carefully consider all the hidden costs too.

Investment Advice

Property is one option when it comes to investment opportunities. We are able to offer you investment solutions, including ethical investment options, at every stage of your wealth cycle – as your family, life and financial situations evolve, so please get in touch before taking the plunge.

5Hodge Bank, 2021, 6Which?, 2021,

7 Accumulate Capital, 2021