Not even the British weather can stop the beaches, parks and outdoor activities in the UK from booming at this moment in time, with more and more people visiting different parts of the UK to take a break and get away from normality. Last year’s Brexit result and the drop of the GBP certainly had an influence on this; encouraging UK residents to stick to Britain as far as holidays are concerned.
Growth in the UK Holiday Let Market
Holiday lets in the UK are generating billions of pounds and that is expected to increase by almost a quarter by 2021. With a lack of housing being built in some tourist heavy areas, this is not likely to change any time soon. The holiday let market is set to achieve even more popularity in the coming years, particularly because of the difficulties the buy-to-let market is currently facing, following the introduction of new legislations. Many experts anticipate a drop in the buy-to-let investment market, meaning that thousands of investors could turn their head to the UK holiday let market instead.
Advancements in technology have also had a big impact on the holiday let market, providing ease and a sense of trust for UK residents with the development of online booking platforms. Not only can people now see a whole host of different options when looking to book a ‘staycation’, including pictures and detailed information, but the booking company provides a trusted way to complete the booking fast and easily.
Maximising Investment Returns
It is widely known that rental income from holiday lets are often significantly higher than those of buy-to-let properties, although expenses and fees can also be higher. Despite higher expenses and fees, finding the right property in the right location with great facilities is sure to mean that you can benefit greatly from your holiday let investment. So how can you maximise your potential returns?
Find the Perfect Location – Choosing the right location is almost certainly the most important factor when considering how worthwhile your investment is likely to be. By conducting extensive research into a variety of areas, you will be able to determine where your property should ideally be located based on the income that you can achieve but also the likelihood of consistent tenants.
Buy the Right Property – By choosing a really cheap and low quality property you risk not being able to attract tenants, but choosing an overpriced asset may mean that the property investment isn’t worthwhile. Having a high quality property is likely to attract more tenants, so getting the right property at the right price could be a big plus in terms of investment returns.
Optimise Your Facilities – By ensuring that your property is equipped with good quality furniture, appliances and other relevant facilities, you will ensure that people will be attracted to your property, as well as the fact that you won’t need to regularly pay out to replace them. As well as this, including additional extras and going the extra mile for tenants in a way that others may not might lead to you seeing more bookings for your holiday home.
Maximise Bookings – Make sure that you do all that you can to attract as many people to your property as possible. Finding the right booking agency with a good reputation would be the key to this, providing that you can get their services at the right price for you.
Competitive Pricing and Constant Property Occupancy – In order to achieve the most returns on your investment, you should have a pricing structure that brings a good level of returns, whilst still remaining competitive and appealing to potential tenants. Weeks with no tenants will harm your returns significantly, and so keeping your prices competitive and offering discounts are good ways of keeping a steady flow of occupancy.
Show Off Your Property – Ask your customers to provide feedback on your website or on other relevant booking sites so that other people can see how good your property is. Without positive reviews, many people may not want to book your property and this would really harm your investment returns. You can also hire a professional photographer to take pictures of your property, of which you can then post online and show the true quality of your offering. This can encourage people to book with you, which of course boosts your overall returns.