by Joanna Bailey
If you’re looking to generate a second income, buying a holiday home could be the perfect investment option. Not only will you own a holiday cottage for yourself and your family to escape to, but you could also make a healthy profit by renting it out to holidaymakers.
Holiday lets can be a great investment, here are some reasons why.
Increased demand for UK Staycations
The UK has become an increasingly popular place to holiday over recent years and a Visit Britain study shows that the spend on UK staycations during 2019 was over £24.7 billion – an increase of almost 3% on 2018.
2021 is set to look even brighter for UK holiday let owners as holidays abroad remain uncertain with Covid-19 creating ever-changing restrictions and travel corridors, meaning the consumer is perhaps less confident to holiday abroad and will choose to book a staycation instead.
Higher income potential
One of the benefits of short-term letting instead of long-term letting is the potentially higher income that holiday lets can offer. Holiday lets benefit from flexible and often daily pricing, as opposed to long-term lets which typically adopt strict monthly pricing strategies. If your holiday let is successful, this could result in a much higher income return than if you chose to long-term let.
You still get to enjoy your property
With short-term lets, you and your family get to select which weeks which you can come and stay and enjoy your holiday home.
Holiday let tax benefits
As furnished holiday lets (FHLs) are deemed as a business, holiday let owners can be eligible for a number of tax benefits that you wouldn’t be entitled to if you decided to long-term let.
The current tax relief that you can benefit from includes; Mortgage Interest tax relief, Business Rates relief, Capital Gains tax relief and more.
By signing up with Heart of the Lakes, who are part of the Sykes family, you benefit from a local agent with local people, great contacts and partners and a local managed service. At the same time, you have the back up of a national organisation with its unique and market-leading Revenue Management systems and marketing clout and budgets to further maximise your income.
If you’re interested in holiday letting in the Lake District get in touch with us today and one of our Property Experts will be in touch as soon as possible, simply complete the form online here or email us at firstname.lastname@example.org.
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