Holiday home investing: Doing your bit
Owning a holiday home is a big responsibility, and one which goes beyond just maintaining the property itself, you’re investing in the local area. Surely then, it’s only right that as members of that community we contribute and do our bit to help it thrive?
There has been endless media coverage over the past few years about the boom in the holiday rental market. We know that during lockdown the popularity of staycations soared and, mirroring that, the amount of investment in second homes being bought to rent out as holiday homes. But sadly, as investments in holiday lets increased so did the number of them sitting empty for weeks at a time, having a detrimental impact on the rural communities they’re based in.
Looking after the local area
Until now, it has been possible for anyone to claim they are renting out a second property as a holiday home. There was no requirement to prove this was the case and this has resulted in some investors purchasing a second property, listing it as a holiday home, but leaving it empty for large parts of the year as they keep it solely for their own personal use.
However, for local communities who thrive on the tourism industry this is having a major impact. Instead of a stream of tourists to spend money in the area, desirable properties are sitting empty when they could have been real goldmines for tourist destinations. In addition, in some rural communities the waiting list for social housing has been growing ever longer, while properties which would be ideal for these families have been bought up only to be lived in for a few weeks every year.
The holiday property business is a big part of what we do here at Cotswold Property Partners, whether it’s managing our own properties or helping our investors find places of their own. To us, a holiday home is something that enriches your life as an investor, but also gives a property a new lease of life. It should be more than just bricks and mortar and it should be a positive addition to a local community, not something that has a negative impact on the permanent residents.
Doing things responsibly
New legislation was introduced at the start of this year, which ruled that from April 23rd 2023, second home owners who claim they are renting out their property as a holiday home, must evidence that it has been rented out for a minimum of 70 days per annum and is available to rent for at least 140 days per annum. Owners must supply the evidence in the form of letting details, receipts and advertising from brochures or websites. In short, it means there will now be a means of ensuring that second homeowners who buy properties and claim they are commercial holiday homes are in fact using them for that purpose.
This might sound like a lot of work, but it shouldn’t be something that puts you off investing in a holiday property (or two!). If anything, it should reassure you that you’re getting into it for the right reasons, and there are measures in place to make sure that other investors in your chosen area are also doing the right thing, you’re all building a stronger local community together.
We work with our holiday home investors to make sure they get the perfect property for them, and part of the service we offer is ensuring that the setting up of the property is done correctly. If you’re keen to invest but concerned about securing enough bookings to meet the new ruling, we can also offer help and support with managing the property. We offer property management support in and around Oxfordshire and further afield we can help you source a property management company that meets your needs.
Playing our part
There are still concerns that the new measures don’t go far enough in supporting rural communities. As holiday homeowners it’s up to us to remember that part of the reason we chose these properties was the appeal of the local area.
Whether you’ve gone for a coastal retreat or a countryside bolthole, making sure that our purchase becomes a successful holiday property will contribute towards a thriving local community, which holidaymakers want to visit. If, individually we all do our bit to protect the area we’ve invested in, then that’s going to make a difference.