21 April 2022

Holiday lets – the boom is far from over!

By Jean Errington, Telephone Business Development Manager, Harpenden Building Society

With overseas travel restrictions being eased, could the surge in staycation holidays be over and we see a dip in demand for UK holiday let accommodation? I don’t think so. I strongly believe there will be ongoing demand from investors wanting holiday let properties, providing a significant opportunity for mortgage brokers in 2022 and beyond. Here is why!

Circumstances are changing

Despite the likelihood of being able to travel more freely in the year ahead, will people want to head overseas to the same extent as in pre-pandemic times?  Having sampled all the UK has to offer over the last two years, holidaying in the UK looks likely to maintain its popularity. So what is keeping staycations in vogue and the demand for holiday let property?

Reasons to holiday in the UK

Stability – whatever is happening in the wider world, a UK based staycation provides a more guaranteed holiday option, less vulnerable to outside influences. With the likelihood of new Covid variants appearing around the world and the restrictions they bring, holidaying on home soil provides a strong option.

It’s easy – a UK holiday let stay is simple. You know what you’re getting and it’s easy to travel to. There are no flight cancellations, delays in the passport queue and no currency issues to contend with.  

Mini-breaks – with pent up demand to holiday, following years of not being able to, a short break in the UK could be a welcome addition to overseas travel.

Great options – investors are pouring money into their holiday lets, making them as desirable as possible to maximise occupancy and to attract customers willing to pay a premium for a high-end spec.

The love of the British staycation remains strong, providing considerable opportunity for investors wanting to capitalise on the popularity of holidaying closer to home. Would-be holiday let owners are seeing the favourable returns possible but need expert support from their broker and lender when financing the purchase. 

Financing options

When choosing a lender for your Holiday Lets, Holiday Homes or Second Homes customers, it’s important to strike a balance between the lender’s experience and expertise in the market, their product’s features and the rates they offer.

We manage complex cases and income, offer bespoke solutions and provide flexible underwriting. Harpenden’s Business Development team also have a wealth of knowledge when it comes to holiday lets and a great track record of securing finance in this specialist area. 

Here is what we offer, including unique features within the market, which can act as a benchmark when you are considering which lender to work with:

  • 89% / 3.39% Repayment and IO options plus 75% and 80% LTVs
  • Top slicing - if rental income doesn’t cover mortgage payments, we can use surplus income
  • Gifted deposit accepted (must be from a family member)
  • No upper age limit
  • Customer’s income is considered from a range of sources
  • Holistic view of the applicant’s financial circumstances
  • Available for purchase, re-mortgage or release of equity to include short term holiday letting
  • A minimum income of £30k is required
  • Personal usage allowance introduced up to 90 days
  • We accept AirBnB
  • We lend in town and city centres, other lenders may not
  • We lend for properties above commercial units/properties

Brokers with strong holiday let applications will be welcomed by a specialist lender like Harpenden. 2022 is already proving to be a considerable opportunity for new holiday let business, don’t miss out!

 Jean Errington, Telephone Business Development Manager, Harpenden Building Society

Visit our website at harpendenbs.co.uk/intermediaries or contact us at brokerteam@harpendenbs.co.uk

View our e-book for all our mortgages and criteria information

Sign up to stay in touch with us


For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.