2nd home owners urged to let, not sell

WITH house prices in Britain undergoing a simultaneous boom and bust, according to contradictory statistics, letting agency HomeAway is encouraging owner investors to consider the holiday rentals market to maximize their returns.

Recent reports from the Office for National Statistics, the Royal Institute of Chartered Surveyors, the Land Registry, and Nationwide have suggested that prices are still on the increase but that the market is cooling – due to factors including increased supply, expected interest rate rises, and tougher mortgage applications.

ONS - Average house price/average earnings

 ‘We have seen a 32 percent hike in demand for staycation holidays in the UK in 2014 and the revenues from short-term rentals outstrip long-term tenancies,’ says Karen Mullins, marketing director at HomeAway. 

ONS - Experimental Index of Private Housing Rental Prices
by English region, Jan11 to Jun14

‘Holiday rentals also mean owners can still enjoy their second home without committing to the obligations of being a landlord. If owners are considering selling their properties, we suggest holiday rentals are the perfect solution in an uncertain market, and may be a long-term strategy for investors.’

They also point to other benefits to letting second homes rather than leaving them empty for 48 weeks a year. Not only will the property be more secure when hosting guests, but these high-spending visitors also provide a welcome boost to local attractions and restaurants, ensuring the long-term prosperity of the destination and therefore value of the property.


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Picture Credit: From Top -  "Gozo-harbour-hotels" by Myriam Thyes via Wikimedia Commons; "Wiedil-MielahWindow" by Wusel007 via Wikimedia Commons