Holiday home landlords who own property in sought-after locations in the UK can earn up to almost six times the average weekly rent in the UK in peak season, according to Second Estates, specialists in buying and selling holiday property.
The jump in holiday home income is the result of the higher weekly rental rates holiday homes can command during high season, including the school holidays, particularly summer, Easter and Christmas, which inflates the annual total and offsets periods when the property lies vacant.
The UK’s short-term holiday let market is particularly buoyant at the moment, with Second Estates reporting that average income per booking is up 6.4% in the first four months of 2017 compared with the same period last year.
The report reveals the UK now has 165,000 holiday let properties, with the average property generating annual rental income of £22,281 in 2016. This is double the average of £11,052 for residential properties. In peak season, the average holiday let property generates £1,200 a week, almost six times the average weekly rent in the UK, the research shows.
The areas of the UK where holiday let rental growth was fastest in the first four months of 2017 were the South of England (+17.3%); Cornwall (+14.5%) and Devon (+8.9%).
The growth in rental income is being driven by increasing domestic and international demand for short-term stays in popular UK holiday destinations.
The findings from the study show that there were a record number of visits to the UK in 2016, with around 37.6 million overseas visitors contributing in the region of £22.5bn to the UK economy. The number of overseas visitors increased 7% in the first three months of 2017 compared to the same period in 2016 and the amount they spent was up 11%.
Alistair Malins, CEO of Second Estates, said: “The weak pound is persuading millions of Britons to remain in the UK this summer and attracting more overseas visitors to the UK. The strength of the UK tourist industry is paying dividends for holiday property owners.”