Please note: Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

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We’re all going on a summer holiday… the essential facts on Holiday Lets

With UK short breaks on the rise and an estimated 73% of adults planning to take a break in the UK this year[1], owning a piece of property in one of the UK’s more idyllic corners is looking ever more appealing.

But, what sort of properties make the best Holiday Lets, where are the UK’s Holiday Let hotspots and who tends to buy them? Read our guide to find out more.

Who’s buying?

Like Buy to Let, Holiday Let purchasers tend to be middle aged and in 2015 were on average two years older (49 years) than someone purchasing a Buy to Let property (47 years).[2] As for location, four out of the top six postcodes that buyers listed as their home address were in London, with North and South West London topping the list. Other locations that buyers hailed from included Edinburgh, Oxford and Leicester, all possibly city dwellers looking for their own slice of countryside.[3]

Where are they buying?

With miles of coastline, rugged countryside and cities including Bath and Bristol, the South West unsurprisingly topped the list of locations where buyers applied for a holiday let property last year, with more than double the number of applications than the second highest contender on the list. Buyers looking to purchase here not only have the idyllic locations to look forward to, but with Devon and Cornwall topping holidaycottages.co.uk’s league table for the highest number of bookings on the site in 2015[4], demand in the area is looking strong.

Outside of the South West, other popular areas included Scotland, East Anglia, South East and North East England, which all made the top five.

When are they buying?

We all know the feeling of returning home after a holiday and immediately wishing you could do it all over again. Perhaps unsurprisingly then, the top months for holiday let applications in 2015 were September and October, usually around the time people have returned from their summer breaks. Other popular months for application included June, July and December*. 

How much are they borrowing?

In 2015 those purchasing Holiday Lets tended to borrow more than those purchasing a Buy to Let, with the average loan amount on a Holiday Let more than £80,000 higher than that on a Buy to Let property*. Holiday Let borrowers took out an average loan of £186,857 compared to the Buy to Let average of £106,180, perhaps due to more desirable locations and type of property pushing prices up for aspiring Holiday Let owners.

For more information about Leeds Building Society’s Holiday Let product offering, or to speak to one of our team about general enquiries or specific cases call 03450 50 5555. We may monitor and/or record your telephone conversations with the Society to ensure consistent service levels (including colleague training).

* Information sourced from Leeds Building Society, based on a review of intermediary Holiday Let and Buy to Let applications from 01 January 2015 and 21 December 2015

This article contains public sector information licensed under the Open Government Licence v3.0 www.nationalarchives.gov.uk/doc/open-government-licence/version/3/

 

[1] http://bdrc-continental.com/projects/holiday-trends-2016/

[2] Data based on a review of intermediary Holiday Let and Buy to Let applications from 01 January 2015 and 31 December 2015

[3] Data based on a review of intermediary Holiday Let applications from 01 January 2015 and 31 December 2015

[4] http://www.holidaycottages.co.uk/assets/pdf/press/south%20west%20top%20spot%20for%20holiday%20property%20investment.pdf