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Staycation explosion makes holiday lets a viable alternative to BTL

A holiday lets firm has outlined six reasons why that sector may be a good bet for property investors, despite recent lockdowns restricting tourist travel and hitting owners’ income. 

Beach Retreats says the growth of staycations means the holiday let sector is now a potentially long-term investment opportunity.

The firm’s managing director, Andrew Easton, says: “2020 was a year of stark contrast; in July we went from zero bookings to being completely full overnight and thankfully the interest hasn’t waned since. 


“In the past 15 years, I haven’t seen the holiday market perform so strongly in the South West, especially for long lead time reservations.  We will soon be opening 2022 for reservations to reflect demand.”

He cites these reasons:


Favourable tax rates - For holiday let properties considered a ‘furnished holiday let’ and let 105 days or more a year there are allowances and tax reliefs. You can deduct costs such as mortgage interest and letting agency fees from pre-tax profit and there may also be tax advantages relating to kitting out a property. 

Goodbye council tax - As a furnished holiday let owner, you’ll need to register for business rates which are generally cheaper than council tax. If your property qualifies for Small Business Rates Relief, you’ll receive a 100 per cent exemption.

Agents can help - An agency can handle everything from advertising to cleaning as well as interior design.

An investment you can enjoy - Owners can stay in properties as well as letting them at other times.

A low risk strategy - With payment up front, there is no financial risk of non-payment compared to long lets” he says.

With good returns - Beach Retreats claims owners are seeing returns of between 4.0 and 6.0 per cent for owners after costs, while a strengthening market for the right property in the right area means an appreciating asset.

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Poll: Do you consider investment in holiday lets...


  • icon

    Ideal opportunity over the next 9 months.


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