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Gloucestershire Business News

Staycations increase holiday let mortgages

The surge in staycations has fuelled a demand for mortgages for UK holiday let properties in the UK.

The amount of 'holiday rental property' mortgage deals has more than doubled in the last year. Financial data provider MoneyFacts has sourced this information.

More than 11,000 second-home owners have turned their properties into holiday lets to cash in on the booming market for staycations. This is according to real estate advisor company Altus Group.

Those who opt for a buy-to-let mortgage tend to fall into two categories: they may be investors looking to rent out their own holiday home at times when they aren't in it; or they could be former landlords with long-term tenants who now want to cash in and turn their property into a holiday let.

UK holiday let prices have soared over the last year as most people have had to rule out holidays abroad. Some popular destinations like Cornwall have seen landlords prefer holidaymakers over long-term tenants. A coastal housing crisis has ensued, with many residents of these seaside destinations struggling to find housing.

There were 186 holiday let mortgage deals available in August, compared with 74 in August of 2020.

Rupert Swetman, head of mortgages at The Mortgage Brain said: "We have received an increased number of enquires of people looking to invest in Buy To Let properties and many people are exploring turning properties into Holiday Lets to take advantage of the staycation market."

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