With house price uncertainty rife, HomeAway urges property owners to put sale plans on hold and consider holiday rentals.
LONDON, UK – With house prices in the UK undergoing a simultaneous boom and bust, according to contradictory statistics, HomeAway is encouraging owner investors to consider the holiday rentals market to maximise their returns.
Recent reports from the Office for National Statistics, the Royal Institute of Chartered Surveyors, the Land Registry and Nationwide have suggested that prices are still on the increase but that the market is cooling – due to factors including increased supply, expected interest rate rises and tougher mortgage applications.
“We have seen a 32 per cent hike in demand for staycation holidays in the UK in 2014 and the revenues from short-term rentals outstrip long-term tenancies,” says Karen Mullins, Marketing Director, HomeAway, which has more than a million holiday home listings.
“Holiday rentals also mean owners can still enjoy their second home without committing to the obligations of being a landlord. If owners are considering selling their properties, we suggest holiday rentals are the perfect solution in an uncertain market, and may be a long-term strategy for investors.”
Research by HomeAway shows that London is the top destination for enquiries from HomeAway customers around the world, accounting for 43 per cent of enquiries for UK-based homes. The West Country came second (17 per cent), South East England third (9 per cent) and the Cotswolds a strong fourth (5 per cent).
“The Cotswolds is a hot destination for both staycationers and overseas visitors alike,” continues Mullins.
“Enquiries for holiday homes in the Cotswolds have soared by 89 per cent year on year, but, while this is good news for people who already own property in the area, prices in the Cotswolds are higher than London – with the average home costing 19 times the annual salary, according to the National Housing Federation.”
“We would suggest owners and investors in Yorkshire, the Midlands, the North East and Conwy in particular, look at holiday rentals, as these areas have seen enquiries more than double on HomeAway in the last 12 months, and property there is far more affordable.”
HomeAway claims that there are other benefits to letting second homes rather than leaving them empty for 48 weeks a year that go beyond the rental revenue. Not only will the property be more secure when hosting guests, but these high-spending visitors also provide a welcome boost to local attractions and restaurants, ensuring the long-term prosperity of the destination and therefore value of the property.
“People who book with HomeAway get to stay in fantastic properties across the globe that invariably provide better quality accommodation and value than hotels,” says Mullins.
“These savvy staycationers also provide a welcome boost to rural economies and offer owners a healthy revenue stream of up to £54,000.”
“With the housing market showing signs of cooling, now is the perfect time to consider renting your second home to holidaymakers, rather than selling up.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
