Data has been released by Holiday Crowd in partnership with Sykes Cottages which has shown a 4.9% increase in the booking values in comparison with the same period in 2016. These increased prices show the resilience of the property market an effect of the increasing demand for holiday accommodation in the UK’s popular tourist spots.
The increase in the price of holiday accommodation is seen across the holiday property rental market and it sits comfortably in contrast to the residential Buy-to-Let sector. In the residential sector the rent prices have stagnated or have declined in many areas around the UK. A study has been carried out by Landbay that has shown that rents are rising at a 12-month average of 1% across England and Wales. This in comparison to the 4.9% increase in the holiday rent price market means that the sector is doing almost five times better that their residential counterpart.
Investors are turning to holiday rental properties due to pressure that has been put on them from low interest rates and rising inflation. The holiday rental market is looking more stable than the residential market, and if investors continue to switch sectors it could boost the holiday rental market but lead to a further decline in the residential Buy-to-Let market.
Holiday Crowd has also launched a platform that will act as a simple way to invest in holiday rental properties located in tourist hotspots around the UK. This new investment scheme was launched in March this year and will allow investors to build a portfolio from amounts over £1,000 and will be able to benefit financially from the rewards of ownership. This means that investors will also get a share in any rental income as well as possible capital appreciation that is connected to the investment property. The investors could also benefit from discounted bookings at their portfolio properties which means that they have benefited from a smart way to invest as well as saved money on their holidays.
