The financial benefits of investing in a holiday home are becoming increasingly apparent as more British people are considering investing in this area, according to a new report.
The holiday lets marketplace could be set to spike again over the next five to ten years as a quarter of Britons are considering investing in a holiday home according to the Holiday Lettings’ Insights Report.
Of those who would invest in overseas property, more than half, 59%, said that with prices currently low, the long term capital gain opportunities were appealing.
Some 25% of those surveyed said that they would consider investing in a holiday home in order to supplement their income. The report also reveals that Holiday Lettings’ customers, holiday home owners with properties worldwide, are thought to have earned an estimated £540 million this year.
The report looks at a mix of enquiry data and consumer research to track trends. Demand for self catering holiday villas and apartments has grown 39% year on year and global events such as the Royal Wedding have demonstrated the potential in the holiday lets market beyond peak summer bookings.
Sri Lanka has shown the greatest uplift in demand year on year, up 67%, followed by Finland at 55%, Indonesia at 45%, and Trinidad and Tobago and Kenya both at 44%. The other countries in the top ten are Slovakia, up 40%, Canada up 39%, Andorra also up 39%, the Seychelles up 38% and Wales also up 38%.
Sri Lanka and Indonesia were also recently included in the SLIMMA list of nations that were highlighted for their predicted potential in 2012 at the World Travel Market 2011.
The 10 most popular destinations where demand outstrips supply were Playa d’en Bossa on Ibiza, Amsterdam, Playa de las Americas on the Canary Islands, Portrush in Northern Ireland, Playa Del Ingles in the Canary Islands, San Antonio on Ibiza, Saint Paul’s Bay and Saint Julian’s on Malta, central London, particularly Covent Garden, London Bridge, and Fitzrovia, and Brighton and Hove on the South coast of England.
The report names 10 destinations with capacity for growth. Top is Newark, in England which is close to Sherwood Forest; Burwash, UK, the home of Rudyard Kipling; Seeb in Oman, a coastal fishing town with surrounding landmarks; Figueretas, a suburb of Ibiza Town with a palm fringed promenade; Østerbro, a leafy, high end suburb of Copenhagen; Waterhouses, a charming Peak District village in northern England, Cala’n Bosch, a popular holiday resort in Mallorca; Hondon de las Nieves, on the Costa Blanca in Spain; Corfe Castle in Dorset, England; and Wildschönau, Austria, ski-ing location in the Kitzbühel Alps.
‘For those considering a long term investment from which they can gain some lifestyle benefits as well as additional income, holiday lets are a reliable asset. Self catering holidays continue to see a huge surge in popularity as more and more people catch on to the benefits. As demand increases so too does the supply, with savvy investors spotting prime opportunities,’ said Kate Stinchcombe-Gillies, from Holiday Lettings.