14th
Sep 2021
In the last twelve months the number of ‘holiday let’ mortgage deals available has more than doubled.
Following the covid restrictions domestic holidays have surged which has seen a blitz of investors and landlords busy looking for the best deals on holiday rental mortgages.
According to Moneyfacts the lenders have duly obliged as the number of ‘holiday let’ deals has more than doubled in the last twelve months.
A real estate agent adviser firm’s research of government figures fully backs Moneyfacts data as it found that over 11,000 second home owners had ‘switched’ their properties to offer ‘holiday lets’ to take advantage of the boom.
Many landlords who let out their properties to tenants have now ‘flipped’ their properties to accommodate the surge in UK holidays, and investors are snapping up holiday homes that can rent out when not living there.
UK holiday rents have skyrocketed after the Covid overseas travel restrictions came into force and many landlords in ‘tourist hot spots’ have switched their traditional tenant lets to holiday lets.
With rents for UK holiday accommodation rising sharply over the past few months after the pandemic ruled out overseas travel for many, some landlords in popular seaside destinations such as Cornwall have been favouring holidaymakers over long-term tenants.
As previously reported areas such as Devon and Cornwall are now facing a housing crisis causing the government to plan a raft of changes to second home ownership including giving councils powers to ban them.
Moneyfacts has scoured holiday let mortgages on the market and found that in August there were186 holiday let mortgage deals available, which more than doubles the 74 deals in August 2020.
This has also seen an influx of more lenders offering holiday rental mortgages as in August 2020 there was 14 but this year there are now 25, as more specialist and smaller lenders such as building societies have entered into the fray.
Rachel Springall, a spokeswoman for Moneyfacts, said: “As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come.”
Chris Sykes, a consultant at a mortgage broker, said there had been a surge in demand for holiday let mortgages and said: “Everyone’s gone to [places like] Cornwall or Norfolk or Scotland or Cumbria on holiday this year,” and unsurprisingly landlords were “wanting to capitalise on that”.
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