buying a holiday cottage

Buying a holiday cottage to let


Last Updated on January 30, 2016 by admin

buying a holiday cottageThe tourism industry is now worth more than £137 billion to the UK economy and with the latest Census figures showing that more than 1.6 million people in England now own a second home, could you be ready to join the queue of people buying a holiday cottage and welcoming guests through their doors?

We take a look at six areas to consider when buying a holiday cottage to let…

Location – an important consideration when buying a holiday cottage to let

If you’re deliberating over buying a holiday cottage to let, the likelihood is that it’s going to be away from your current place of residence. This comes with some added considerations; areas popular with tourism often carry with them a premium price, and also require a local knowledge to ensure you’re in the right place.

In some locations the difference a mile can make in potential rental value you can expect to gain, and the price you’ll have to pay can be massive.

Ensure you do your research; speak with a number of local agents, and also visit a range of properties in the locality to allow you a greater understanding of the market. You want to make sure what it is you’re buying is going to give you an adequate return.

Size matters

Who is going to want to stay in your property, and does the size therefore make it suitable?  If your holiday cottage is likely to be full of young families from spring to summer then it’s vital you have the space in which to accommodate them. You may also want to consider the space outside of your holiday home; does it have a large garden in which children can play? Or where romantic couples can watch the sun set?

Also bear in mind that the larger your holiday home is, the more maintenance and cleaning it will require. Who will be doing that for you? Are you factoring this into your on going running costs?

Local amenities

What is it that brings people to a certain location? Whilst getting the right sized property in the right spot will significantly increase your chances of bookings, it’s important to remember that guests will actually spend the majority of their time outside of your holiday home!

Tourist attractions, restaurants and pubs, walks and beaches; all these things will make great selling points when it comes to marketing your holiday cottage and it’s vital that as an industry we all work together in order to promote the destinations in which we live and work.


The type of property you buy and where, will ultimately boil down to how much you have to spend, but there are a few extra costs you need to take into account.

Additional taxes apply to any second home, the biggest of which is Stamp Duty. Last November the Government announced a new 3% surcharge will apply to each stamp duty band on any additional properties costing more than £40,000. These changes come into effect from April.

So if you’re looking at buying a holiday home for £250,000 bear in mind you’ll need an extra 8% (£20,000) on top. Click here for full details about Stamp Duty changes.

Registering as a Furnished Holiday Letting (FHL) will also affect your income tax, so do your research into how to qualify. More information on how to qualify can be found here:


Knowing UK holiday letting laws before you buy a holiday home is hugely important when it comes to understanding your rights and responsibilities.

From health and safety regulations to maintenance guidelines, ensure you you’re fully clued up before making that investment. Take a look at our health and safety guidance section for more information.

Specialist Holiday Letting Insurance

Once you’ve found your perfect property, you’ll need specialist holiday home insurance to protect you from incurring financial loss if your property suffers an insured peril.

Working with a specialist means they understand the risks you’re facing, and can provide you with the cover that you really need. Whether it’s Loss of Rent cover that ensures you don’t lose out should your holiday home become uninhabitable due to issues such as storm damage, or Accidental Damage making sure you don’t end up out of pocket if a guest damages your property, our team will speak with people just like you every day and will be able to help.

Boshers offer specialist holiday home insurance to owners across the UK. For more information on how a specialist insurer can help and support you if you’re buying a holiday cottage to let, please give us a call on 01237 429444.


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