As the lockdown restrictions across the UK ease following a year of staying home and staying safe under the COVID-19 pandemic, UK staycations are set for another boom. So, is 2021 the right year for you to invest?
Demand for holiday rentals in the UK have been rising steadily in recent years and due to the events that have unfolded over the last year with COVID-19 restrictions a further surge in bookings for short-term holiday rentals is predicted. Due to travel industry still expecting international travel to face certain restrictions and uncertainty still faced with overseas variants of COVID-19 it is likely that over the following few years more holidaymakers will choose to stay in the UK.
After a year of lockdown, a UK staycation is the ideal way to spend precious time with loved ones and family. Additionally, in many cases short-term UK holidays can occur with little or no human interaction making it an ideal escape under COVID-19 restrictions.
Over recent years many buy-to-let landlords have branched out into short-term lets as holiday rentals have the potential to be lucrative investment decisions, especially in the right location. It is more common for holidaymakers to want a touch of luxury to their staycation and look to replicate the glamour that is often found overseas. Luxury rentals, in particular luxury lodges like our latest investment opportunity have luxury in abundance from the interior fit-out, to the modern exterior allowing holidaymakers to relax in style.
In 2020 ‘minications’ started to become popular with last-minute getaways being booked with the changing of restrictions. A luxury lodge in a secluded hideaway spot with an abundance of amenities and activities nearby will undoubtedly be a popular choice for UK staycations.
Many of these holidaymakers are looking for a comfortable base to relax with an a nearby area to explore a range of outdoor activities as well as the luxury comforts of a gym, restaurants and children’s activities. To achieve a successful holiday-let investment the property needs to be accompanied by a fantastic area with an abundance of amenities and entertainment for the whole family.
The benefits of investing in short-term holiday lets
If the investment is done right, landlords can earn significantly higher yields for short-term holiday rentals than long-term rentals. Many holiday lets make more in a week than a buy-to-let rental makes in a month. Additionally, furnished holiday lets come with certain financial and tax benefits too.
Our luxury lodge investment opportunity is available with finance packages to help you secure the investment and can offer a rental yield of 8%. The investment deal also comes with a two week personal usage per year which is worth around £2,000 pa.
Investing in the UK staycation boom with a luxury holiday let can be a great way to diversify your property investment portfolio. On top of that, Brexit and COVID-19 are expected to further strengthen this market. Poor exchange rates have made staycations more attractive to UK holidaymakers causing a further boom in UK tourism.
Big Roar offer a range of investment opportunities and alongside our traditional build-to-rent and buy-to-let investment opportunities there is a large portfolio of short-term rental investments. Sign up for free to receive full information on our Luxury Lodge investment opportunity.