The holiday property sector in the UK is growing and attracting investment interest from all over. Property investors are seeking alternatives to conventional buy to let properties since the government changed the tax laws.
Did you know that if you invest in furnished holiday accommodation there are generous capital allowances available? When you hold a furnished holiday property for rent you can expect a capital allowance of around 25%.
Holiday Property Fastest Growing UK Sector
According to Deloitte, the leisure and tourism sector is the fastest growing in the United Kingdom. They predict that by 2025 it will be the largest sector in the UK. Deloitte estimate that the sector will be worth around £257 billion.
There has been further research to support these claims conducted by ABTA, Barclays Corporate, Booking.com and Visit Britain. Most of the major sector players have experienced significant growth over the last few years. A good example is Sykes Holiday Cottages that saw their turnover grow from £13 million in 2013 to £34 million now.
Heavy investment in some of the UK’s leading brands such as Center Parks and Park Holidays further underlines the significant growth in the holiday property sector. There have been some seriously large acquisitions over the last four years.
No Brexit Impact
The holiday property sector has continued to grow in the UK despite all of the Brexit uncertainty. It is one of the few sectors that has managed to do this. The main reasons for this are that short breaks and UK holidays are now more popular than ever. A study showed that people are willing to drive up to 3 hours away for a good leisure break.
Since the decision to leave the EU in 2016 the pound has fallen 20% which makes short breaks and holidays in Europe less attractive. People would rather get more value out of staying in the UK for their holiday or break.
Hotspots for UK Holidays
The most popular regions for short breaks and holidays in the UK are:
- Southwest England
- Yorkshire and Humberside
According to Travel Supermarket the most popular cities and areas are:
- Isle of Wight
- Lake District
- North Wales
- North Yorkshire
- Scottish Highlands
What are UK Holidaymakers looking for?
If you want to invest in a holiday property then not only do you need to choose the right location but you need to ensure that your property offers the facilities that UK holidaymakers are looking for.
They want good leisure facilities and home comforts and a hot tub. Having a log burner is also attractive to holidaymakers. If you can add a wellness element to your holiday property then you will increase your chances of regular bookings. This means having a spa and a swimming pool at least in your holiday property.
So if you are looking for an alternative property investment strategy for 2020 and beyond then you would do well to consider the holiday property sector. The demand is continually growing and if you can find the right property in the right location then you could be on to a winner.