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HOLIDAY-LET INVESTMENTS: STAYCATION RESEARCH



Aug 17, 2020

According to Visit Britain there were over 46 million domestic holiday trips in England alone in 2019, up 3% compared to 2018. 
As a result of Covid-19, interest in British breaks has boomed. With growing demand for accommodation from holidaymakers looking for a safe place to stay, holiday-let property investors could be set for bumper interest from those looking for short-term rentals. 

If you’re thinking of investing in a holiday-let home, or already own one, you might be interested to find out more about attitudes towards domestic travel at the moment. We recently commissioned some new research into staycations to understand how the public feels, here’s what we found:

2020 is the year of the staycation

Three in five Brits we questioned said they were planning a staycation in 2020, with over a third (35%) admitting the pandemic had directly influenced their decision to holiday on home soil. 50% more people admitted having voluntarily cancelled holidays abroad than in the UK, and twice as many said they’d take an ad-hoc UK based trip in 2020 than an ad-hoc holiday abroad. In short, Brits are keen to holiday on home soil.

Scotland or the South Coast

When it comes to destination, it seems for many Brits it’s a case of Land’s End or John O’Groats, with Cornwall and Scotland topping the list of most desirable places to visit. Devon, Wales and the Lake District completed the top five. Our top 10 most desirable locations list could help those considering a new holiday let purchase understand where visitor demand could be highest.

Top 10 most desirable UK destinations

Rank               Destination                                            
 1  Cornwall
 2  Scotland
 3  Devon
 4  Wales
 5  Lake District
 6  Dorset
 7  Norfolk
 8  Peak District
 9  London
 10  Cotswolds

Post lockdown lodgings

When we asked holidaymakers about where they’d be most likely to stay during a UK holiday, hotels were the most popular choice, with over a third (37%) saying they’d consider this option. Positively for investors, a further three in ten said they’d opt for a self-catering holiday let as their UK based accommodation, preferring a ‘home from home’ atmosphere. 

Rank             Accommodation type         % who'd consider this option             
 1  Hotel    37%
 2  Self catering holiday let          29%
 3  Stay with family/friends          16%
 =4  Caravan  15%
 =4  B & B  15%


Destination decisions


When we asked people about why they wanted to visit a preferred destination, we found that lockdown had left Brits dreaming of returning to a favourite destination (27%) or of finally making it to a ‘bucket list’ destination that they’d always wanted to visit (26%). So thinking about places you’ve stayed or would love to visit could make a good starting point for a property search.

Top 10: How brits pick a UK holiday hotspot

Rank  Reason                                                                                
                        A place I regularly visit                                                                         
 2  A place I've always wanted to visit
 3  A place I've read/heard good things about
 4  Proximity to family/friends
 5  Chosen based on price
 = 6  Proximity to home
 = 6  A place I've lived previously and want to return to
 8  A place I went to on family holidays as a child and want to return to
 9  Chosen based on availability
 10  A place I went to on a school trip and want to return to

Ready to take the plunge?

If you are considering taking on a holiday-let property, you’ll need specialist holiday-let mortgage to finance the purchase. These are available with a deposit of 25%, and the amount that can be borrowed is based on the likely income from short term rental of the property. You can find out more about our range of holiday let mortgages here.
 


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