Half of the top ten most active property markets in the UK this year have been coastal locations. Holiday destinations have been on a steady upward trajectory; two areas which appear in our top ten were also on the leader board at this point last year: Margate and Bideford, both seaside locations.
We’ve noticed a shift in investor purchasing patterns since the changes to Stamp Duty Land Tax (SDLT) on owning more than one property, which were implemented in 2016. Many investors are now turning to holiday lets.
Holiday lets are viewed by HRMC as a trade, rather than an investment changing the rules on certain elements of landlord income such as the ability to offset mortgage interest costs against income for tax purposes. And with the impressive yields achievable on a well purchased holiday property – it is no wonder that holiday lets are popular amongst investors.
We’ve found over recent months that many clients are asking – where is the best place to buy a holiday home in the UK?
Coastal holiday homes
For some, a holiday isn’t complete without a sea breeze. Both Cornwall and Devon are well known for those seeking a staycation by the seaside. Truro, Paignton & Totnes and Bideford have all recorded high levels of activity in their respective property markets.
Margate in Kent was recorded to have one of the most active property markets so far this year – a nostalgic holiday destination the key tourist attractions have undergone regeneration in recent years.
Holiday destinations in the UK aren’t solely coastal – the British countryside is beautiful in every season.
The Cotswolds sits across 6 counties but primarily covers Gloucestershire and Oxfordshire and is popular with those seeking respite from their busy lives. Home to thatched medieval villages and multiple stately homes the area also has a 102-mile walking trail popular with ramblers. If you’re travelling from London there is a route from London Paddington to Worcester which makes stops at two small Cotswolds towns Charlbury, and Moreton-in-Marsh as well as Kingham a pretty unspoiled Cotswold village.
With miles upon miles of footpaths The Yorkshire Dales is also popular with those looking for a walking holiday in the UK. If outdoor activity isn’t for you, you can still enjoy the beautiful scenery as it envelops the most picturesque towns. The locals are known to be particularly welcoming and there are several renowned public houses dotted across the area.
The UK has some excellent lakeside holiday destinations, in particular and by far the most concentrated area for lakes in the UK is The Lake District. The likes of Keswick and Windermere are lively towns, holidaymakers can find peace and tranquility in the mountains around Ullswater and Wasdale.
Cheddar in Somerset is home to Cheddar Reservoir, although not huge in size it is an excellent example of a lakeside holiday destination in the UK. The villages, which are only a short drive from Bristol and Bath, surround the man-made lake, and are full of people who live in the area full time so no matter what time of year you visit there is something going on. The reservoir was the first in Britain to be used for sailing and is now used for other recreational activities such as coarse fishing and wind-surfing. Of course nearby Cheddar Gorge is also a hugely popular attraction.
In Hampshire The New Forest is known for its open pastureland, heathland, forest trails and the New Forest Ponies who reside there. The area extends out to the coast with pretty seafront towns such as Lymington. You can take a car ferry from Lymington to the Isle of Wight in under 40 minutes. It takes only a few hour’s drive to reach The New Forest from London, with trains from London Waterloo to Lyndhurst taking similar time.
Sherwood Forest in Nottinghamshire is one of the UK’s most popular woodland holiday destinations. Home of the medieval legend, Robin Hood the area is great for outdoor pursuits. There are several market towns within a short distance of the forest itself such as Worksop also known as the ‘Gateway to the Dukeries’, a unique selection of Ducal properties in north Nottinghamshire.
Buying a holiday home for investment
If you are considering purchasing a second home or holiday home with the intention of letting it for short periods there are tax implications and it is important to seek specialist advice. It can seem very easy and appealing to simply advertise your property on a site such as AirBnB so do keep in mind that you are in fact operating a small business.
As demonstrated here, there are many locations in the UK that might appeal for the purpose of a holiday investment property or a second home; it can be tricky to decide which location will work best for you. If you would like impartial advice on making a successful purchase, contact us.