Mortgages for borrowers taking advantage of the thriving holiday let market are becoming more abundant as lenders increase their offerings in this growing area of the buy-to-let sector.
This is according to new data from Moneyfacts which revealed the number of holiday let deals more than doubled since August 2020 with 186 options available now compared to 74.
The number of lenders offering these deals has also risen during that time from 14 to 25 – the majority being building societies.
And this is helping to fuel a rise in holiday let companies, with the number being set up between January and June this year increasing 83% versus the whole of 2020 and 119% more than in 2019 according to Hamptons International.
Despite this increase and the clear demand for staycation properties however, Moneyfacts said the holiday let market remained relatively niche.
What’s more there was also an unknown over how long the popularity of the staycation would last.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “The mix of uncertainties this year surrounding international travel has caused demand for holiday lets.”
But, she added: “Whether the appetite for staycations falls into 2022 is unknown but for the moment it’s evident landlords are taking advantage of the opportunity to earn an income through holiday lets.
“Those who may have saved some additional disposable income during the UK lockdown, or are looking for alternative investment opportunities, may then be keen to get involved. Undertaking thorough research into popular locations, weighing up tax benefits, reading up on rules regarding residency periods and other potential expenses outside of utility bills can feel daunting, so seeking advice before entering an arrangement is wise.”
