Holiday property is delivering better returns on investment than buy-to-let for the UK property sector. And as we bask in the glorious June sunshine, where temperatures have been higher than in Thailand, it’s easy to see the staycation appeal driving this trend.
The UK is seeing a huge boost to tourism in recent years. Thanks in part to the fall in the pound, ‘staycations’ are more popular than ever. And Cornwall is a popular region – for holidays and for holiday rental investment.
UK is booming
We came across some research by Second Estates, who source, let and manage holiday lets across the UK, which shows the extent of the boom. Specifically, average income per booking is up 6.4% for the first four months of 2017. The UK short-term holiday let market is strong and there is no reason to believe this upward trend will reverse.
Second Estates explain that the UK now has 165,000 holiday let properties. And the average property generated annual rental income of £22,281 in 2016.
This is double the average of £11,052 for residential properties, where rents around the UK look like they are declining. In peak season, £1,200 a week is generated by the average holiday let. This is almost six-times the average weekly rent in the UK.
Cornwall holiday property
Cornwall has seen one of the highest growth areas. In this westerly corner of the UK, holiday rental income is up 14.5%.
Second Estates said that the growth in rental income is being driven by increasing demand for short-term stays from domestic and international visitors. Cornwall is not the only region to experience this growth, but it is one of the more popular holiday destinations.
In 2016, 37.6 million overseas visitors came to the UK. This was a new record. Already this year, the number of overseas visitors has increased 7%, compared with the same period in 2016.
As well as being full to bursting with some fabulous holiday property, Cornwall is really a stunning place to live. We wrote about a Falmouth lifestyle here.