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The global pandemic of 2020 led to a resurgence in demand for UK vacations with record numbers holidaying at home in 2021. Coastal resorts around the country saw a boom in visitors including to Frinton-on-Sea, from where Boydens Holiday Lettings division operates. Branch Manager, Matthew Hayward, explores the appeal behind holiday lettings as an investment for new landlords.

Understandably, the events of the past few years resulted in a resurgence in UK holidays. Travel restrictions, flight prices, and growing awareness of climate change all combined to make home getaways more appealing. In addition, cancelled flights and delays at airports have fuelled anxiety among UK holidaymakers due to disruption caused by staff shortages across the aviation industry for Summer 2022.

The appeal of holidaying in the UK has not just been limited to holidaymakers. According to research by Suffolk Building Society, 17% of UK adults contemplated buying a holiday let property during the pandemic, with the data highlighting that younger people were leading the trend, with those aged 18-34 most likely to have thought about buying a holiday let property within the past 24 months.

Of those who expressed their interest in becoming a holiday let landlord, almost a third (32%) said Covid-related restrictions inspired them to look into holiday lets, however, half (50%) claimed it was always part of their plan.

Short-term holiday lets can be an attractive option if you own a property somewhere scenic especially in an area that is popular with tourists, such as the Essex Coast. In fact, holiday lets can be extremely profitable, as landlords are able to charge higher rents for short-term holiday lets when a property is in a highly desirable location.

If you are considering venturing into the holiday lettings market there is plenty to consider.

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“Holiday lets are especially ‘location sensitive’ and those close to the sea are always popular. Quirky, historic, or luxurious properties also tend to be more popular among those looking for places to stay.”

What is the difference between a holiday let and a residential let? Generally, a short-term holiday let is a property that is let out to holidaymakers for short periods, usually from three nights, a few weeks or up to 31 days.

A residential let is typically a property that is let for 12 months at a time.

As with any property investment, the rate of financial return will depend on several factors, such as the initial amount invested in the property, its features, the location, market demand and pricing strategy.

Location is key Holiday lets are especially ‘location sensitive’ and those close to the sea are always popular. Quirky, historic, or luxurious properties also tend to be more popular among those looking for places to stay. Log cabins, pretty seaside cottages, ultra-modern five-star houses, and anything slightly out of the ordinary stands out and attracts attention when renting out a holiday home, however, the right location can make a huge difference for a holiday let. People don’t mind ordinary if the location is close to a beautiful beach or a few minutes’ walk from a major attraction.

Looking the part As a holiday let is not going to be your home in most instances, it is important to keep décor as neutral as possible. Decorative themes such as seaside shabby chic can be popular though it is advisable to avoid bold colours and the temptation to ‘over-personalise’. Simple, comfortable furniture is a must and, as sofas and beds are likely to see greater wear and tear over time, a landlord should be prepared to have these cleaned regularly and replaced every three to five years. Guests will expect all mod-cons when they go on holiday and look for many of the comforts they enjoy at home. The kitchen should be well fitted with a good selection of dinnerware, cookware, pots, pans, cutlery and glasses. Dishwashers and other white goods are also essential. It might be advisable to invest in an appliance repair policy, so if anything breaks down, you can have it fixed fast as these items are often well used.

Broadband is a must-have these days and many people won’t even look at a holiday let without internet access. Guests will also expect a working TV with a good specification, and you might also consider adding a subscription television service if you are looking to attract families to your holiday let and make it a home from home.

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Outdoor space can also be very appealing and provide a place in which guests can unwind on a summer evening. Adding a garden table and chairs or a BBQ can be welcome additional touches which will be appreciated by guests.

For seaside properties, consider providing beach toys, such as buckets and spades, sunbeds, beach umbrellas, etc. Optional extras include kayaks, dinghies, bodyboards, and snorkelling gear. In short, anything that might attract guests and set your property apart from others is a worthy investment when setting up a holiday let.

Check it out We recommend you conduct sufficient research into the realistic rental income that you can expect, which is where an agent such as Boydens can help. We are familiar with the local area and so are in the best position to guide on potential rental income (whether for holiday or residential lettings purposes) if you are looking to let on the Essex Coast.

Before potential owners jump into the holiday lettings arena, investors should also check the nuances of mortgage lenders’ criteria as not all lenders will allow them to market their property on a short-term basis.

At Boydens, we are always happy to assist landlords who are looking to review their portfolio, so please do not hesitate to contact our Coastal Branch on 01255 851185.

For further information, contact matthew.hayward@ boydens.co.uk

Beach hut values continue to surge

As the demand for UK holidays has surged, so too have beach hut values, which have reached record levels over the last two years. In Frinton, prices have reached as high as £85,000, driven by exceptional demand and a lack of supply.

Elsewhere in the region, a beach hut in the upmarket seaside town of Southwold recently came on the market for £250,000 – more than it costs to buy a house in some other parts of Suffolk.

Beach huts remain in high demand to purchase and to rent, so if you are an owner considering selling or letting, call our Coastal Branch today.

Holiday lettings in Frinton and the surrounding area are extremely popular and encompass both holiday homes and beach hut rentals. You can read more about the area and why it appeals so much on pages 48-52.