Recent figures reveal that millions of British holidaymakers are opting for staycations this summer, boosting the holiday rental market.
According to the Daily Mail article, the weak pound (its 14% devaluation means Brits get less for their money abroad) has persuaded many to stay in the UK - with the knock-on effect being that the holiday rental market is enjoying a surge.
The study highlights that:
- the average price of a week's stay in peak season is up to £1,200 – an increase of 6.4% on last year;
- prices rose by 17.5% in the south of England and by 14.5% in Cornwall;
- searches and bookings for trips within the UK this summer rose by 23.8%;
- various holiday lettings agencies have reported a spike in rental revenue, with a 74% increase in short break stays Brits get away for a weekend instead of a full week.
Also, the UK is experiencing a tourism boost, with figures showing that
3.7 million tourists visited in April this year – an increase of 19% compared to the same month last year and the highest in April since records began.
Alistair Malins from holiday property company Second Estates, said: “The weak pound is persuading millions of Britons to remain in the UK this summer and attracting more overseas visitors to the UK. The strength of the UK tourist industry is paying dividends for holiday property owners.”
The UK holiday rental market consists of some 165,000 properties and generated £2.1 billion last year. The average rental income per holiday property in the same period reached £22,281 - double the average of £11,052 for residential properties.
Mr Malins added that this makes holiday properties an ever-more attractive investment: “At a time when buy-to-let rents are increasing at a 12-month average of 1.12% and the latest ONS inflation figures are at 2.9%, investors are looking further afield for low risk and high yielding assets.”
Further reading: The Complete Guide to Owning a Holiday Home.