Zoe, Underwriting Consultant
This weekend marks the start of British Summer Time and with it the promise of longer days, warmer weather and holidays in the sunshine. It might explain the reason why we’ve seen a recent increase in the number of brokers contacting us wanting to talk about holiday lets.
What is for certain is that tourism in the UK is booming. There are more than 38 million overseas tourists predicted to visit the UK in 2019 – a 3.3% increase on 2018 – spending a record £24.9 billion1, while there was a 5.8% increase2 in the number of UK residents opting for a ‘staycation’ rather than a foreign holiday in 2018.
With more people choosing the UK as a holiday destination, it’s no surprise landlords looking to diversify their portfolios are considering holiday lets. In fact research3 shows that 5% of landlords already own a holiday let in the UK, a figure which rises to 9% for those landlords with 20 or more properties. Not only could furnished holiday lets be an excellent long-term investment, they are unaffected by the mortgage interest tax relief changes. Landlords can therefore continue to deduct interest from the rental income to calculate the profit on which tax is calculated.
As the UK’s leading specialist lender4, we’re always thinking of new ways to help your customers explore exciting new buy to let opportunities. Our latest criteria enhancement has been designed to help landlords who want to invest in a holiday let property. Customers can choose from our core Buy to Let Mortgage range and we accept:
For more information, click here to view our Buy to Let Mortgages Criteria Guide, speak with our Sales Team or call 0800 116 4385.
Source: 1 https://www.visitbritain.org/forecast
3 BVA BDRC Landlords Panel Report Q2 2018
4 BVA BDRC Project Mercury Report Q4 2018