It’s the end of the high season for holiday home owners across the UK, and it’s also a great time to start thinking about becoming an owner if you aren’t already. The popularity of letting out holiday homes has only grown in recent years, and more and more people are starting to realise how rewarding buying a holiday let can be.
Buying a holiday let is a big decision to make, we understand that, so to help you along the way we’ve written a list of 5 great reasons you should get into letting a holiday home.
There’s currently a huge boost in UK tourism
UK residents are increasingly choosing to stay on these shores for their holidays. With the recent economic turbulence, Brits are visiting areas around the UK (and spending their money) rather than hopping on a plane and heading abroad. A recent survey by Great Britain Tourism found that visitor numbers increased by 12% in the first half of 2015, and the indication is that that number hasn’t been shrinking since.
As well as Brits, tourists from further afield have also been heading to the UK in their droves. The recent EU referendum led to a large drop in the pound, which meant that visiting Britain became a lot cheaper for international visitors, who in return spent more.
Let’s be realistic, everyone loves the idea of being their own boss. With a holiday home you could make that a reality! You can decide your working hours, control your calendar, and decide how you want to run things. Buying a holiday let can also be great if you’re retired but aren’t quite ready to give up working completely as those summer months are bound to keep you on your toes.
It can be financially rewarding
On large properties, you can earn up to £30,000 a year. That’s a fantastic earner, particularly if the holiday let is a side project. As well as rental income, you can offset expenses including full mortgage interest against the rental income if you operate under the ‘furnished holiday letting’ rules. You can also get entrepreneurs’ relief, which cuts any potential capital gains tax take to 10%. To qualify for furnished holiday letting tax reliefs your holiday home must be available for 210 days a year and actually let for a minimum of 105 days. You’ll find more information on tax considerations for those buying a holiday let below:
- Help your local tourism industry
Your holiday let won’t just benefit you, it’ll benefit your local area. Guests staying in your property won’t be sat inside all week, they’ll be out and about spending their money in local restaurants, shops, and attractions. In March this year, the industry saw a 23% increase in spending on last year – a fantastic boost for your local area and the great businesses that are based within it.
- You can use it too!
If you live in a different area to your holiday let, there’s no reason you can’t take advantage of it! Treat yourself to a long weekend in your home-from-home and give yourself the chance to enjoy what you’ve created for your guests. Just be wary of friends and family who want to ‘borrow’ it for a week in July!
Considering buying a holiday let? You may also find the following posts on letting a holiday home of interest:
- Buying a holiday cottage to let
- Delivering quality in your holiday home
- Holiday letting guest safety – understanding your obligations
- Ten benefits of using a holiday home letting agent
- Guide to Holiday Home Booking Contracts – Terms and Conditions
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.
For further information on UK holiday home insurance visit the website page most relevant to you: