Holiday Lets - The Brexit Effects

  • Character Cottages

I’m considering buying a house to let as a holiday property. How will Brexit affect this decision?

Each year the holiday letting market is flooded with new cottages purchased by eager investors. For investors looking for a reliable return on investment, holiday letting comes with many benefits when compared to other property-based opportunities, meaning holiday letting is the avenue of choice for many shrewd investors. 

Unsurprisingly, the uncertainty of Brexit has curbed this trend, reducing the number of new cottage purchases entering the holiday letting market. Following the announcement of Brexit in 2016, there has been two years of perceived little progress, resulting in many investors deciding to sit back and wait for the Brexit fog to lift. This sharp decline in the number of completed investment purchases has significantly reduced fresh competition in the market, which is nothing but a good thing. For serious holiday cottage owners, interested in delivering year-round occupancy, Brexit is taking the shape of a silver lining.  

With the post-Brexit effect on European travel still uncertain, many holidaymakers are looking towards a staycation this year. Compounded by a weak pound and the prospect of getting even fewer Euros for your money before the year is out, coupled with the not-so-distant memory of the long hot British summer of 2018, many families, couples and singles alike are opting to spend their well-earned time off in the UK. 

However, we cannot deny that Brexit is having an effect on the general demand of the holiday rental market. UK holiday habits are changing as a result of uncertainty. A budget for an annual holiday is being reduced or spread over several breaks, which is resulting in an increase in the number of late bookings and short stays. The ability to offer holidaymakers the added value of flexible booking parameters is a real opportunity to capitalise on any nervousness from holidaymakers. Another successful tactic to use during the uncertainty of Brexit is operating a considered variable pricing model, where a break is sold at the best possible price at the most opportune moment, within the parameters agreed with the property owner.  

The growing trend for wellness holidays is also putting the UK staycation’ firmly on the map. Cottages in scenic locations are proving popular, with walking top of the holiday itinerary.  

The UK cottage holiday letting market has a strong heritage, with deep roots that are not easily shaken. In fact, the uncertainty of Brexit has only shaken off the competition that creates unnecessary noise for customers trying to choose a trustworthy holiday that delivers value. Becoming agile in your cottage holiday letting allows you to move with the uncertain times of Brexit, providing an unrivalled return on investment. 

Tom Burdett is Managing Director of Character Cottages, an independent company specialising in the holiday letting of luxury properties in the Cotswolds. To find out more about their services visit www.character-cottages.co.uk, email letmycottage@character-cottages or telephone 020 8935 5375.