How will climate change affect UK holiday let investment?
By Vanessa Hunt, Key Account Manager, Harpenden Building Society
The wild-fires and intense temperatures impacting holiday destinations in the Mediterranean have created a worrying situation. If expert predictions are correct, climate change, the root cause of these issues, will affect future holiday planning and create extra demand for holiday accommodation in more moderate climates like our own.
For this and a variety of other reasons, the already booming UK holiday let market is likely to grow further giving additional opportunity for mortgage brokers arranging finance in this space. So what’s behind this situation?
Global warming is leading to changes in weather, including the record breaking heat seen in southern Europe. As a result, some popular holiday destinations are becoming less attractive in peak summer months due to concerns over extreme temperatures and the associated dangers. (According to the Daily Mail, excessively high temperatures in Europe have already led to 10% of tourists choosing cooler holiday destinations this year).
The UK, which benefits from more stable, moderate weather, is becoming an increasingly attractive long-term holiday option as a result. With milder winters also predicted, the UK tourism season could extend creating more opportunities for those wishing to holiday here.
Climate change may be a long term cause for an uptick in UK holidays but immediate factors like disruption to overseas travel, post Brexit affects and the cost of living crisis are all reasons for the current interest in domestic holidays. As a result suitable accommodation is in high demand.
UK Holiday lets
Holiday Lets are a popular option to fulfil this need with the numbers of properties assigned to this purpose set to grow. The Statista Market Outlook, says 15 million people used a holiday rental in the UK in 2022, and that will rise to 16.5 million in 2023. Research from Sykes Holiday Cottages also states 84% of owners say bookings are stronger than ever, and expect this to continue over the next 5 years. With such buoyant figures, it’s hardly surprising that investors looking for a strong return are investing in holiday let property.
Sourcing the right holiday let mortgage
As a specialist holiday let mortgage provider, Harpenden Building Society continues to see high levels of interest from brokers working on behalf of their customers in this category.
The demand for holiday let properties looks set to rise in the UK due to a range of environmental, economic and social factors determining the way holidays will be taken in the future. We’ll be pleased to hear about your customers’ holiday let mortgage needs for those considering this option. Details of this and our wider specialist lending products can be found at www.harpendenbs.co.uk/intermediaries or by contacting the team at email@example.com
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