With rules and regulations for foreign travel changing and growing ever more confusing by the day, it’s hardly surprising that UK staycations have seen a huge surge in demand this year – great news if you’re a landlord with a holiday let. New data released by Hodge has revealed which regions of England are currently home to the most expensive holiday-lets and biggest yields for their landlords.
According to the figures, the south-east of England is currently a hot spot with a week’s staycation at a holiday let in the garden of England costing an average of £1,910 at high season, making it the most expensive place to stay in the UK.
The average UK rental yield for a holiday home is £1,556 at high season, £1,107 at mid-season and £795 in low season.
The five most expensive regions to stay in the UK, according to Hodge Holiday Let mortgage data, during high season are:
South-east of England – £1,910
South-west of England – £1,769
East of England – £1,569
Wales – £1,418
North-west of England – £1,302
If budgets are tight this year, then it seems the cheapest place to stay during high season is Scotland, with an average price for rental yields of £1,222. But if you are looking for an affordable winter break then the northeast of England might be the place for you, with an average weekly rental cost of £674 during low season.
Emma Graham, business development director at Hodge, explained: “When brokers and intermediaries come to us with a holiday let application we ask them for the average rental yield for that property, from that we can calculate how much an average rental for that region is during the different seasons.
“What our data shows is there has been some slight fluctuation in the market over the past year, with rental yield prices going up and down marginally, but that areas like the south-east and southwest are always the most profitable when it comes to running a holiday let business, as rental yields are always high.”
Emma added: “It will be interesting to see how the rental yields will change over the next 12 months as restrictions on travel ease and more people are able to holiday abroad.
“What is clear to see is holiday lets have been hugely popular in the past six months, not only in terms of sales but also in terms of the rental owners are able to charge, and holiday lets have been a sound investment for many if they have been able to buy one at the right time and at the right price.
“Hodge is one of only a few lenders on the market who will lend to mortgage customers looking to use letting sites such as Airbnb. These sites are popular for those looking to book a city break and will help to boost rental yields for city-holiday let homeowners.”
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