Staycations were the theme of 2021 and if you own a second property in a popular UK holiday destination, then you are likely to be pleased that Britain is continuing to ride the staycation wave in 2022 despite the return of foreign travel.

With the cost of living crisis and the ongoing uncertainty of international travel restrictions on flights, going abroad for a holiday is off the agenda for millions this year and instead, many Brits will be enjoying the beauty of their own country. But with some local councils clamping down on second homeowners, what will this mean for the UK holiday-homes lettings market? James Richards, Partner at Tunbridge Wells sales and letting agent, Maddisons Residential, expands on this topic.

The rise in popularity of holiday rental websites

The holiday rental market has been thriving ever since the rise in popularity of websites such as Airbnb. As a result, more people are becoming aware of this sector and buying second homes in popular UK holiday towns, with the financial and lifestyle benefits making them an attractive investment opportunity.

This high demand for staycation properties is pushing up rental costs and making buying a holiday home in the UK one of the biggest property investment trends of 2022. One can expect the potential return on investment during the peak seasons to cover more than the ongoing costs of running the property. Not to mention the additional benefit that a holiday home allows, a bolt hole to visit in off-peak seasons or regular long weekends, with hybrid working making this an increasing possibility for many.

The government will clamp down on second homeowners

Across England and Wales, nearly 20,000 new homes have been newly registered as holiday lets over the course of the pandemic – bringing the total to 83,342 nationally. Although such rentals arguably allow for more tourism, locals often have a different view. Issues raised, most notably in Cornwall, are that such rentals reduce housing stock for locals, which in turn creates a knock-on effect for employment, with many businesses struggling to find staff for the busier periods. Additionally, some villages have a high level of vacant properties in the off-peak period which causes significant local upset.

With short-term listing numbers on Airbnb rising rapidly over recent years, plans are now being drawn up by Michael Gove, the levelling-up secretary, which would give regional mayors extra powers to restrict people renting out second home properties if they are deemed damaging to the local community.  

Additionally, the Welsh government is due to add a 300 percent council-tax hike from next year to second homeowners and Brighton Council and many Cornish towns are restricting all new homes from second homeownership.

With Sykes Holiday Cottages seeing summer bookings increase by 26% over July compared with the same period last year, it doesn’t look like this problem will be resolved anytime soon, but holiday homeowners should remain aware of the potential implications arising in the future.

If you are looking for support in renting out a property in Tunbridge Wells, Crowborough, and the surrounding areas, why not give us a call on 01892 514100.  The team at Maddisons Residential are more than happy to help.