This market update will identify all you need to know about the current landscape of the holiday home market in the UK, helping you make an informed decision.
According to a report by VisitBritain, the national tourism agency of the UK, the popularity of holiday homes has been increasing in recent years – mainly due to the pandemic and the ‘city exodus’ which followed plus the birth of ‘work from anywhere’ Although there has been a slowdown in the sales of holiday homes, the rental market has remained strong.
What does this mean for you as a holiday homeowner? The half terms, school holidays or weekends you decide not to use the property, there certainly will be demand to earn a rental income.
No matter what type of property you’re looking to purchase, the Articus team is here to help. Do get in touch.
Why buy a holiday home?
Finding the perfect area for your weekend
A holiday home in the UK is ideal for those seeking a relaxing getaway, regardless of location. London is one of Europe’s most prestigious cities, perfect for those who enjoy a lively atmosphere. Along with exciting nightlife, the city offers various opportunities for a relaxed retreat, such as a stroll through Kensington Gardens. If you look beyond the city limits, you will find that the UK is home to some of the world’s most breathtaking countryside. Whether you are looking for lakes, peaks, beaches, or a mix of all – you will find the perfect destination for your holiday home.
Simple getaway
Holiday homeowners often cite increased quantity and quality of family time as one of their top benefits. With a designated place to escape from busy everyday life along with various activities, families can enjoy their time together. No plan weekends will never be the same.
A holiday home provides you and your loved ones a getaway at your convenience, making it easy to plan regular trips to your desired location without excessive planning or costs.
Extra income
By renting out your holiday home during the months/weekends you’re not using it, you have the potential to earn a solid extra income. This is completely at your discretion and can even be left to the last minute by using the likes of Airbnb or lastminute.com. At Articus, we offer assistance for those interested in holiday homes. To learn more, download our Buy-to-Let guide.
What are the drawbacks?
Owning a second home can be costly
With additional costs and responsibilities such as bills and maintenance, holiday homeowners frequently express that they spend more time/money managing property maintenance and administration than they do enjoy it.
However, using third parties (e.g: Airbnb) to mitigate the costs – and even manage the property for you – can be a good way to stay flexible and ensure it is not too costly, sometimes even profitable.
Difficulties securing a mortgage
Due to increasingly strict affordability criteria for mortgages, obtaining a loan for a holiday home can be challenging. Prospective buyers may be required to make significant cash down payments. However, with the assistance of Articus, these challenges can be overcome. We specialise in challenging situations such as this. Do get in touch with one of our brokers today to discuss your options.
Where to buy in the UK?
Whether your second home will be an investment or a weekend getaway, Articus select the top locations in England for a second home.
An escape from the capital – Kent
Also known as the Garden of England, Kent is regarded as one of the best areas to live in the UK. Margate and Broadstairs are charming seaside towns, with the added benefit of direct trains to London. Kent is also home to the stunning Kent Down and the white cliffs of Dover which are renowned for their natural beauty. This is a lovely countryside option for those seeking a peaceful rural retreat.
Property prices: Kent’s average house price of £441,089 is comparable to neighbouring East Sussex (£448,128) and West Sussex (£460,789), yet more affordable than Surrey (£653,834).
Brighton is a coastal city in the UK known for its unique character. Its streets are lined with a diversity of restaurants, pubs, coffee shops, museums, and galleries. Travelling to Brighton is convenient as it’s one of the most well-connected cities in the UK. You can reach it in under two hours by car or train from London.
Property prices: A two-bedroom flat with stunning views of the coast will start at around £600,000. Terraced properties sold for an average of £600,700, with semi-detached properties fetching £696,740.
Cornwall is a popular summer holiday spot for many and a sought-after location for vacation homes, with an extensive coastline boasting everything from sandy beaches to stunning views and perfect surf. The location benefits from a moderate climate, experiencing the UK’s warmest and sunniest weather.
Property prices: The majority of sales in Cornwall during the last year were detached properties, selling for an average price of £485,153. Terraced properties sold for an average of £242,626, with semi-detached properties fetching £284,928.
Great for wildlife – New Forest
The New Forest is a haven for outdoor enthusiasts, with an abundance of activities available. On the coast, visitors can join in various water sports, also miles of bridleways, cycling paths and little lanes to explore by horseback, bicycle or walking. There is a variety and quality of local artisan producers, farm shops and restaurants.
Property prices: On average property in the New Forest costs around £600,000. This is considerably more affordable than properties in London, where the average cost of a three-bedroom home in Fulham, for instance, is £1.1 million.
Great all-round destination – Cotswolds
The Cotswolds has a long-standing history of being a profitable investment option for holiday homes, and this trend is set to continue. It is an Outstanding Natural Beauty Area with houses with spectacular gardens, rich history and convenient proximity to major cities. Remembering village life, purchasing a home in this region is a unique experience unlike any other in the UK.
Property prices: Over the past year, properties in the Cotswolds had an average price of £400,00. Detached properties had an average sale price of £630,000, while terraced houses sold for £330,000 on average.
Future Trends in the UK holiday propriety Market
The future trends in the UK holiday property market are positive, with increased demand for spacious accommodation and remote working holidays likely to support growth.
Greater Appreciation for Spacious Accommodation: The pandemic has fostered a greater appreciation for more spacious alternative accommodation options.
Remote Working Holidays: The trend towards ‘remote working holidays’ has helped boost demand for holiday properties, as people seek out more flexible and convenient workspaces while enjoying a holiday.
For many people, the idea of owning a holiday property is a cherished aspiration. However, selecting the right location, obtaining a mortgage and managing the property can be daunting obstacles for potential buyers. Despite these challenges, there are many reasons why choosing a holiday home in the UK is a great option for England and overseas investors. With a variety of locations to choose from, whether it’s a luxurious city property or an escape countryside house, Articus is here to help clients to find a UK holiday home that suits every preference.
Looking to invest or refinance your home holiday property? Speak to an Articus broker today.
