Why holiday homes are the new buy-to-let

Holiday homes at Tingdene Lifestyle's Broadlands Park & Marina are a good holiday let option for pro

Holiday homes at Tingdene Lifestyle's Broadlands Park & Marina are a good holiday let option for property investors. - Credit: Archant

With the trend for staycations still going strong, thanks to post-Brexit concerns and a falling pound, escaping to a holiday home is an attractive option. A holiday house investment is also a savvy option, as increasing costs for landlords suggest holiday lets in Norfolk and Suffolk could be the new buy-to-let.

Properties at Tingdene Lifestyle's Broadlands Park & Marina are a good holiday house investment opti

Properties at Tingdene Lifestyle's Broadlands Park & Marina are a good holiday house investment option. - Credit: Archant

A holiday let can earn as much in a high season week as a buy-to-let does in a month. Even when you consider that a holiday house is unlikely to be occupied 365 days a year, the figures are compelling.

And there are many other factors that make a holiday house investment a sound option.

Buy-to-let was the making of many property investors, but with further cuts to mortgage interest tax relief on the horizon, combined with the 3pc additional stamp duty charge on second homes, it's not the money-maker it once was.

Holiday houses, on the other hand, are experiencing a boom and, with Brits taking 52.5m domestic holidays in Britain between January and October 2017 (up 5pc on the same period in 2016 when there were 50.1m)*, it's a good idea to factor a holiday let into your housing investment plan.

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With our beautiful coastlines, the unique Broads National Park, as well as a rich history and heritage, Norfolk and Suffolk are hotspots for domestic breaks.

Tourism spend in Suffolk jumped by £43m between 2015-16**, and Norfolk's overall visitor economy has grown by 14pc since 2012, compared to England's by 8pc increase in that period***.

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The best investment houses are often those with a good location. For a holiday house that means a place with year-round appeal is going to have higher occupancy levels than a seasonal destination. Short breaks are an essential element, too, and to capitalise on this customer base a holiday house investment needs to be within a two-hour drive of a major city.

It's an area that Benjamin Race, group sales and marketing manager at Tingdene Lifestyle which has an expanding portfolio of holiday parks across the UK including four in Norfolk and Suffolk, has watched booming in recent years.

'We're seeing more and more demand for micro-breaks,' says Benjamin. 'It's a real growth area, with people coming over on Friday night after work and school, then heading back on Sunday afternoon.

'Being close to popular tourist spots such as Southwold, which is just a 10-15 minute drive away from our Broadlands Park & Marina in Oulton Broad, also keeps occupancy levels up.'

He has seen an increasing number of investors buying properties at Tingdene Lifestyle parks, with some using the company's guaranteed finance packages to buy multiple units – one customer has 10!

An investor with £100,000 can purchase five properties for a £20,000 deposit each, with monthly repayments over one to 10 years (non-recourse finance). Benjamin says, while it is not guaranteed and figures vary year on year and to individual circumstances, some owners have achieved a 14pc return on investment (ROI) if the properties are available year-round.

To help owners get the best return from their holiday house investments, Tingdene Lifestyle also has a Managed Letting Scheme in partnership with Suffolk-based Hoseasons, the UK's largest provider of self-catering accommodation.

People who sign up can benefit from a steady flow of bookings from extensive marketing campaigns as well as management of the property.

*Visit Britain

**Visit Suffolk

***Visit Norfolk

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