Staycation Analysis: UKs Top 10 Locations To Purchase A Holiday Home As A Buy To Let Investor

Over the last year, we’ve seen and experienced many changes thanks to the pandemic. The way people spend and save has changed and many have found themselves with savings they’ve never had before.

The pandemic has also had a knock-on effect on the way we travel. There are now increasing demands and multiple hoops to jump through to travel abroad and UK holidaymakers are choosing to stay closer to home, booking holiday homes located across the country.

With the surge in UK staycations, many are looking to invest their extra money into a holiday home or in fact, add to their property portfolios – but what area is the best to invest in??

Our digital team has analysed Google Search data to see which UK hotspots are the most sought out by UK holidaymakers, thus making prime locations for investment.

Methodology

The team analysed 12 months of trend data and found that there had been a significant surge in searches for UK staycations following the government announcement of its green list for places to travel abroad.

The number of searches for a specific keyword search, the increase YoY, spikes in searches over the year and associated breakout keywords used with the term UK Staycation were also evaluated.

This gave us an understanding of behaviour changes, demand, and patterns in searches around key calendar dates and government updates.

Results

Top 10 Locations

Devon and Cornwall were found to be the UK’s favourite haunts for searchers looking to holiday in the UK. Both locations saw a 900% increase in search demand YoY, comparing data from the past 12 months.

The Isle of Man, Isle of Wight and Dorset saw the most significant increase YoY, with average monthly searches typically being around 10 per month, increasing to 1,000 per month – that’s a 9,900% increase YoY.

With search data at its peak, these top ten locations could be promising areas for investors looking to capitalise on the demand of UK holiday seekers.

The Top Ten Most Desired Staycation Facilities

The data also revealed that when UK holidaymakers were searching for their getaway, they were quite particular with their expectations for facilities.

Associated searches linked to the term staycation UK gave insight into what holidaymakers prioritised as most important for their stay. Results were sorted by volume in order to see the most searched for associated terms.

Hot tub and swimming pool were at the top of the list, suggesting these are essentials for UK holidaymakers.

• Hot tub
• Swimming pool
• Log cabin
• Cottage
• Spa
• Beach
• Train (for transport)
• Outdoor activities
• Country pub
• Lake

Hot Properties On The Market Right Now

Using the new research, we explored the market and identified ten hot properties on the market right now for investors to convert into buy to let holiday homes.

We sourced properties with the searchers’ favourite location, featuring at least one of the key venue desirables and under 200k.

1. Devon – Marine Parade, Sheldon

• Price 200,000
• 1 x Bedroom Flat
• Beach View

View online at Rightmove https://www.rightmove.co.uk/properties/77398152#/

2. Cornwall – Greenacres, Penpillick, Par

• Price 200,000
• 2 x Bedroom Terrace
• Heating Indoor Swimming Pool

View online at Rightmove https://www.rightmove.co.uk/properties/67840202#/

3. Isle of Man – Douglas

• Price 225,000
• 2 X Bedroom Townhouse

View online at https://www.rightmove.co.uk/properties/104322815#/

4. Lake District – Marsh Street, Askam-In-Furness

• Price 190,000
• 3 Bedroom terrace

View online at Rightmove https://www.rightmove.co.uk/properties/103232102#/

5. New Forest – New Road, SP5 2AZ

• Price £184,995
• Holiday Lodge with Forest Views

View online at Rightmove https://www.rightmove.co.uk/properties/75359367#/

6. Isle of Wight – Gatehouse Road, Carters Road, Upton Cross

• Price 114,950
• Lodge in a tranquil location

View online at Rightmove https://www.rightmove.co.uk/properties/81920734#/

7. Cotswolds – Apartment 9, Crouch Street, Banbury

• Price 200,000
• Train Station 0.6 miles away

View online at Rightmove https://www.rightmove.co.uk/properties/90863176#/

8. Dorset – Oakdene Forest Park, Ringwood

• Price 191,995
• Lodge

View online at Rightmove? https://www.rightmove.co.uk/properties/79700040#/

9. Bournemouth – Southbourne Road

• Price 200,000
• Apartment
• 0.4 miles from the station

View online at Rightmove https://www.rightmove.co.uk/properties/107862428#/

10. Northumberland – The View at Tree Tops, Whittingham

• Price 200,000
• 2 x Bedroom Detached Bungalow

View online at Rightmove https://www.rightmove.co.uk/properties/100002980#/

Experts Weigh In

Mike Coates, Managing Director at Commercial Expert said:

I have certainly seen the holiday let market increase in popularity, lots more enquiries from clients wanting to invest, and several lenders adding this type of funding to their offering. Holiday let finance has been around for a long time, and there is currently a flurry of activity due to the need for UK holiday makers to take a well-deserved break and holiday in our country.

Staying in a holiday let for a break and owning a holiday let are two completely different ball games. There are complexities to owning a holiday let, for example; the property isnt a normal tenanted property with permanent occupation and guaranteed rent. Income swings with demand, location, time of the year and clearly major events, such as a pandemic. Lenders are very cautious about how they lend, taking into account how much money they have available if the property wasnt let for a substantial time. They also want to ensure that the property will be marketed and managed correctly, whether it is in a suitable and rentable location and also experience is certainly preferred.

However, despite this, there is good money to be made as borrowing rates are low and rental income is high, and there are good options now the choices for funding are increasing. I think that these types of deals are here to stay, and the holiday let market will remain buoyant for many years ? after all we have a beautiful county to visit.

Interested in tips and advice on investing in property to rent out as a holiday home? Stay tuned for our next article or contact one of the team today.