The State of the Holiday Let Market 2023

Описание: The pandemic ended. So where are we now?

Well, we're March 23, so things have settled a bit.

And people who really want to do this are still in the market and we’ve got the professionals now, to be fair.
I don't think the number of inquiries we've got has actually not gone down perhaps as much as I thought it might do. I think the cost-of-living thing is, a big challenge. I think that with has prices, you know, still high in certain areas , and still high in that sort of Devon and Cornwall areas that we work.

Yet, one of the biggest agents in the country -- cottages.com, they came out with their figures and said that that January bookings were up 33% year on year.

Have we got new lenders in the marketplace? How are our lenders? And what's it like out there?

We have a quite a lot of new entrants into the, into the holiday lending market, which is, which is great.

I think lenders, in the holiday let space, we tend to get the smaller building societies who are, who are really specialists.

I think there's definitely room for a few more entrants and, and a bit more product innovation, but generally it's been good to see people come in and test the waters.
So, by that, what are most lenders looking for?

Where they're looking for you to be a residential homeowner. Already they're looking for a level of earned income. Varies from lender to lender, but generally 20 to 40,000 pounds over that you're going to be in with a good pool of lenders. Good clean credit history.
And then the, the property you are looking at, really, the more standard the better. You know, if you could live in it as a home, typical brick and tile, construction, whatever it might be in an area where there's a demand for holiday letter, but there's also a demand for residential that is going to be your most straightforward case.

And the higher the deposit the better, basically
So where does the customer struggle?

So, the, the first one that springs to mind is the limited company approach.

It’s very important to get that proper specialist property tax advice up front. Getting that tax advice, understanding on what your long-term play is and doing it right from day one is, is the most important thing.

The rise of the city break. We’ve seen more inquiries around these city based properties.
I think the lenders are getting it too, sometimes the calculations don’t. They don't quite marry up in the fact that we're looking for a low, medium and high season. 10 weeks, 10 weeks low, 10 weeks medium, 10 weeks high.

But it will work, for the right place.

Get a real specialist view of a local area and a clear understanding up front of the numbers properties can achieve. This is, important to, to you as an investor, but equally important to reflecting it correctly to a lender when putting an application forward.

London is one you've got to be careful on. Well, you've got a, a 90-day restriction generally speaking in, in letting out short-term properties throughout, throughout a year.

Really do your homework on anything you're looking to invest in and understand. Ultimately, what can I do? What can't I do, and what are the costs that are going to be associated with it?

But it is an area I think that is potentially regulation's going to be an ongoing issue and regulation is not always bad. Ladies and gentlemen. CO2 monitors and fire safety are really important.

And to some degree, if people are dabbling at this they, they will fade away and those properties will, will come back.

More needs to be done to, to build new homes for, for local residents and more done to encourage employment and opportunities in these areas rather than just looking at second homes as a, as a bad thing.

And good holiday lets will continue to do well, because there will continue to be a demand for holiday lets in the UK

There's still a good range of mortgage products out there, albeit a little bit more expensive than it, than it was before. , so yeah, it'll be one that I think is, I'm still seeing enough inquiries anyway, to, to suggest that this is going to be a good year.

We're hearing from letting agents with booking figures up and hopefully that that continues.



HHH Mortgages are expert holiday let mortgage advisors. We also help with residential, buy-to-let, first-time buyer, home-mover and professional mortgages too.