UK Rental Mortgage Increases Amid Holiday Boom.
More than double the number of “holiday let” mortgage deals reported this year.
The national holiday boom has fueled a surge in demand for holiday rental home mortgage in the UK as homeowners and investors profit from people taking breaks in Britain.
According to financial data provider Moneyfacts, the number of “holiday let” mortgage deals on the market has more than doubled in a year, reflecting what one mortgage broker said had been “really incredible interest” this year.
Their findings coincided with an analysis of government figures from real estate advisory firm Altus Group that showed that more than 11,000 second-home owners in England had “switched” their properties to vacation rentals since the onset of the pandemic to capitalize on the booming market.
Holiday let mortgages are a type of purchase-to-rent mortgage loan. Those who take them out include homeowners who previously rented their properties to traditional renters and investors who buy a vacation home that they can rent when they are not there.
With UK holiday accommodation rents rising sharply in recent months after the pandemic ruled out overseas travel for many, some owners of popular seaside destinations like Cornwall have favoured tourists over long-term renters.
This has created what some have described as a coastal housing crisis. It is speculated that the government is planning a series of changes to clamp down on second homes, including granting city councils the power to ban them.
“National holidays are opening the way to new opportunities in the market.”
Moneyfacts said there were 186 mortgage offers available this month, up from 74 in August 2020. These mortgages are offered primarily by smaller, specialized lenders, such as home loan companies. Meanwhile, many more lenders have entered the market, with 25 now competing for business, up from August 14 last year.
Rachel Springall, a spokeswoman for Moneyfacts, said: “As demand for home vacations is still evident, it would not be too surprising to see further growth in this market in the coming months.”
Chris Sykes, a consultant for mortgage broker Private Finance, said there had been strong demand for vacation mortgages this year. “Everybody has gone to [places like] Cornwall or Norfolk or Scotland or Cumbria on vacation this year,” he said, and the owners “wanted to take advantage of that.”
The trend has been driven by many buy-to-let owners looking to diversify in response to regulatory and tax changes that, in some cases, have affected earnings.
HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the full external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.
Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.
If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, don’t hesitate to get in touch with us at email@example.com.