Holiday let enquiries up for 88% of brokers

Holiday lets are becoming more popular with 88% of brokers reporting a rise in these enquiries over the past 12 months, according to Cumberland Building Society.

The findings form part of The Cumberland’s inaugural Holiday Let Index, conducted by Pegasus Insight.

Of the brokers reporting an increase in holiday let enquiries, 32% of brokers described this as “significant” with only 8% seeing a decline.

Higher yields compared with traditional BTL investments were identified as the leading reason clients are entering the holiday let sector, cited by 32% of brokers.

Regulatory changes affecting the traditional BTL market were the second most common driver, highlighted by 16% of respondents.

“The assumption in some parts of the market has been that [recent tax and regulatory] changes would reduce appetite for holiday lets, but the research suggests investors are continuing to assess the opportunities available and the returns that can be achieved,” said Grant Seaton, head of intermediary lending at Cumberland Building Society (pictured above).

“As landlords review their options, many are taking a fresh look at holiday lets alongside more traditional BTL investments.

“For brokers, that means having a good understanding of how the sector works, what borrowers are trying to achieve and where specialist support can add value.”