18 April 2022

Nearly 1 in 5 UK adults considering a holiday let

By Andrew Sadler, Key Account Manager at Suffolk Building Society

Earlier this year we found 17% of UK adults considered buying a holiday let during the past two years, equating to over 10 million people*. That’s a big number of potential landlords!

Our survey said…

With travel restrictions in place, isolation and lockdown restrictions plus the increased price of travelling, domestic holidays became more and more appealing. Combine this with travellers becoming increasingly conscious of their environmental impact and carbon footprint and it’s easy to see why holiday lets are becoming more popular, allowing people to enjoy numerous destinations around the UK whilst also helping to support domestic tourism.

Somewhat surprisingly, it was the younger generation who led the trend of wannabe holiday homeowners, with those aged between 20-39 the most likely to have considered buying a holiday let over the past two years. However, it’s likely that when it comes to purchasing a holiday let property, it’s the older generations who are best placed to do so.

Looking at the location of the potential landlords specifically, it was clear that urban areas had the most potential landlords with living closest to London leading the way at 24%, followed by people in the West Midlands (19%). When it comes to their holiday property, coastal escapes are the most popular choice with Devon and Cornwall the dream location of a majority of prospective landlords, with the Lake District, Peak District and Yorkshire Dales making up the top five.

So what does this mean for brokers?

With this large number of potential landlords, brokers can play an important role in helping first timers assess their options as clients may easily fall into the trap of thinking it’s the same as a standard residential mortgage. As a broker, you know it’s not – and it’s even different from a standard BTL.

With your expertise you can help clients navigate the marketplace, where many lenders’ criteria includes minimum ages and potentially a requirement to already be a homeowner - or even a landlord.

As part of the discussion around holiday let criteria, this may even include signposting clients down the buy to let route as a means of gaining additional income and experience with longer term tenants, before borrowers branch out to holiday let later down the line.

Intermediaries can also advise their clients to take the time to understand the market, and check out the competition before falling in love with a property that isn’t viable in terms of lettings.

Holiday let made simple with the Suffolk.

Here’s what you need to know about our holiday let proposition:

  • Airbnb, Vrbo and similar letting sites permitted.
  • Loans available up to 80% LTV.
  • Will accept first time landlords (if owner occupiers).
  • Expats welcome.
  • First time rental properties considered.
  • Up to 60 days of personal use.
  • We assess the loan amount using average rental from high, mid and low season.

 Get in touch.

Whether you are placing a case for a first time buyer or later life borrower, a self builder or a small-time landlord and more, you can always speak to us. And, don’t forget, our expert underwriters consider every application individually, so where others see numbers, we see people.

E:         bdt@suffolkbuildingsociety.co.uk          

T:         0330 123 1073 (option 1)        

W:        www.suffolkforintermediaries.co.uk

Submit your cases to us online by registering with our panel.

All details and lending criteria correct as at 20 April 2022

  • Figure calculated by estimated number of UK adults (52.9 million) according to Office for National Statistics, multiplied by the percentage of survey recipients considering buying a holiday let (17%).

    ** Research was conducted by Opinium Research on behalf of Suffolk Building Society between 22-25 February 2022 amongst 2,000 UK adults aged 18+


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.