Staycation – new UK resorts offering more investment opportunities

The UK staycation market has evolved exponentially during the last five years, resulting in new resorts offering more choices to holidaymakers and investors in the furnished holiday let (FHL) property market.

In this blog, we will examine why the UK staycation is set to boom in 2023/4 and the investment opportunities it offers to Holmeshaw clients.

Every day seems to bring new travel news in the media, from luggage mountains to passport office strikes and airline staffing problems to day-long queues at Dover. Therefore, It is not surprising that the UK staycation boom is set to stay throughout 2023.

The upside of this trend is the excellent opportunity it offers our clients to invest in the FHL market, with holiday lodge property investments providing both rental income for the short term and a tax-efficient capital asset for the future.

If you are thinking about investing either personal or company funds into a holiday lodge investment, the Holmeshaw team is available six days a week to discuss how we can help to create a tailored and assured property investment for you.

Email us to book a call or chat on +44 (0)113 487 8981

What has fuelled the staycation boom?

During the pandemic, when foreign holidays weren’t possible, people had to explore these shores if they wanted to escape it all.

After all, the UK has a lot to offer those on vacation:

·      Less complicated travel, with no luggage weight limit – removing the stress of packing

·      Beautiful coastal and countryside scenery

·      The chance to explore nature and reduce overall stress and anxiety

·      The opportunity to take the whole family, without the stress of leaving the country

·      No language barriers

·      Being able to take a beloved pet – many families became new pet owners during lockdown

According to an article on traveldailymedia.com, (which is based on findings from holiday home operator Verdant Leisure), 53% of 1,000 people surveyed stated that they would look at a staycation because of the cost of living crisis.

The following trends are highlighted in the article:

·      The rise of cheaper holidays because the cost of living has affected holiday budgets

·      A growing number of holidaymakers are choosing Scotland* as their holiday destination

·      Exploring the outdoors – both coast and countryside

·      Romantic hideaways in luxury lodges

·      Taking the family pet on holiday too

If you would like to know more about the reasons behind the growth of UK staycations, including the pandemic's effect, we took a closer look in our blog ‘Why the staycation market is a sound investment.’

Reasons to personally invest in a furnished holiday lodge (FHL)

Whatever your motivation for considering property investment or building a property portfolio:

·      Retirement plans

·      Investing in company profits

·      Looking for a higher return on savings

·      Seeking a second income stream

·      Investing money left to you

·      Wishing to leave a legacy for your children

There are many sound reasons why investing in a furnished holiday lodge with Holmeshaw property investments is worth your consideration.

Government plans for Airbnb holiday home planning permission

A recent article in The Guardian highlighted government plans to introduce planning permission for those converting their homes into short-term holiday lets in tourist hotspots.

Michael Gove, Communities Secretary, is determined to make sure that local people have access to affordable homes in tourist locations where in the past, locals have been priced out of the market or pushed out because of a large number of properties available for short-term rental.

These proposed government plans do not apply to holiday lodges, ensuring they remain unaffected by these changes. As a result, holiday lodges become even more attractive as a secure investment option. Additionally, park resorts, which are licensed and have obtained consent from local councils, would not be influenced by a registration scheme. This further enhances their appeal as an investment opportunity.

Holiday home. Investing through a limited business

If you’re a successful limited business owner with money sitting in the business account, it makes sense to invest through the company.

 Capital allowance on plant and machinery investments

As part of the March 2023 budget, the Chancellor introduced a new ‘full expensing’ capital allowance to encourage companies to make additional investments and help to sustain UK economic growth.

FHL’s e.g., lodges and caravans, are classed as plant and machinery, allowing businesses to fully expense until the end of March 2026.

You can read more on this subject and how it makes holiday lodges a secure, high-yield investment opportunity for companies looking to invest profits in our March blog ‘Budget Update: Property investment for business owners.’

High-yield financial returns

As part of our due diligence to clients, we source luxury holiday lodges in beautiful locations with annual occupancy rates of 80% so that we can provide investments with a high yield.

For example, if you chose to invest in our Woodlakes Park @ Norfolk

·      Investment starts at £165,000

·      No stamp duty

·      Fully secured deposit

·      8% NET rental income over five years = £66,000

·      Structured exit strategy with buyback options

·      All site, management and maintenance fees are included

·      Additional tax benefits (capital allowance mentioned above)

New UK resorts offering more investment choice

We are pleased to be able to offer our clients furnished holiday lodges in several fully managed parks located throughout the UK, where there is high rental demand. All offering the holidaymaker something different.

Check out each of our current locations below:

·      Norfolk – from £165,000

·      Sherwood Forest, Nottingham – from £179,000

In addition, our ‘client promise’ is that we only recommend projects we would be happy to invest in ourselves.

You can be sure that we have conducted in-depth research into our partners for our clients’ peace of mind. If you want to know more about how we research and choose projects, we outline what goes on behind the scenes in our blog, ‘Due diligence for property investments.’

Once you’ve invested, you can rest assured that our trusted property managers will handle everything on your behalf.

Rental bookings are fully managed by the park’s letting management team, so you can sit back, relax, and enjoy an annual rental income without lifting a finger.

Your FHL is a hands-off investment with the bonus of being somewhere you can take your family and friends on holiday.

Hopefully, this article has outlined some of the benefits of investing in a furnished holiday lodge while the booming staycation market is benefiting from new UK resorts offering more choices to both holidaymakers and investors. If you have questions, you can request our FAQ sheet or contact us to discuss our investment opportunities tailored to your requirements.

As with all investments, Holmeshaw would encourage investors to take advice from a financial advisor before investing capital into a property.