RIDING THE STAYCATION WAVE

With international travel restrictions still hampering the plans of many Brits, and the appeal of holidays and short breaks across the UK still very much in vogue, this is a trend which has certainly not escaped the attention of landlords from Land’s End to John o’ Groats.

The rise of the short-term let and holiday let markets has created some appealing opportunities for landlords to generate stronger yields as the ‘staycation’ boom continues to generate heightened demand.

Recent analysis from Moneyfacts shows that there are now 231 buy-to-let mortgages eligible for holiday lets, a 25% increase in the number of available deals available since September 2021. Looking further back, in August 2020, there were just 74 similar deals available.

2021 SEES RECORD NUMBER OF COMPANIES SET UP TO HOLD BUY-TO-LET PROPERTY

Analysis of Company House data from Hamptons showed that there were a total of 47,400 new buy-to-let companies incorporated in 2021 across the UK. This is reported to be almost double the number that were set up in 2017, when it was announced that investors with properties in their personal names would no longer be able to claim mortgage interest as an expense. While the number of buy-to-let companies up and running in the UK passed through the 200,000 mark as the country emerged from the first lockdown, by 2021 this figure has risen to a new total of 269,300.

2021: THE YEAR THAT WAS

2021 has been a hectic year for the industry, and the festive period offers the perfect opportunity to take a breath, eat, drink, be merry and recharge our batteries for what is sure to be an equally busy 2022.

The Stamp Duty Holiday, its subsequent extension and heightened competition across the entire mortgage market resulted in sustained activity levels throughout the year. Although an expected lull has occurred within the mainstream purchase market since the end of September deadline, activity in the buy-to-let and more specialist mortgage markets has remained strong.

THE NORTH WEST: A BTL POWERHOUSE

The recent axing of an East Midlands–Leeds high-speed line and a scaling back of the Northern Powerhouse Rail (NPR) project has drawn fresh attention to the government’s ‘levelling up’ plans.

When it comes to house prices, the housing market and rental demand, the capital and the South-East have often proved to be the source of much interest. However, for many savvy property professionals – even those who may have had a long history of operating in and around this area – heads have been turned in recent years to opportunities further afield. This is especially evident over the past 18 months as a number of landlords and investors have looked to explore more affordable regions in search of lower initial outlays, greater longer-term yields, the ability to mitigate risk and portfolio diversification.

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