We’ve all experienced how the pandemic has changed the way we live, work and holiday. Did you know UK tourism and holiday accommodation is one of the key property sectors that has shown the greatest resilience to the economic challenges of Covid-19 and the post-Brexit landscape?
People have been buying residential buy-to-let properties for almost two decades and by 2019 disillusionment has set in with much of what was on offer. Economic uncertainty, delays to completions, higher stamp duty, less favourable tax breaks, rogue tenant issues and a lot of changes to UK landlord responsibilities in favour of the tenant, all meant investors were no longer receiving the same proposition that was on offer just a few years earlier.
The UK is currently experiencing a tourism boom with an ever-increasing demand for UK holiday lets and savvy investors attracted to the vastly higher yields has been causing many to move away from the residential buy-to-let market. Average annual earnings offer over 10% yield, although this has increased to 14% during the pandemic.
The icing on the cake though was the major tax benefits with holiday let properties which ordinary buy to let landlords can’t get. These can make a huge difference to the profitability of your property.
We now recognize the opportunity and see how easy and profitable the fully managed short-term holiday let industry is.
Location is important but more important is the management.
One of the biggest staycation developers and operators is Royale Life who have developed Sun Valley – a prime staycation location in Cornwall which is the latest addition to their established portfolio of leisure holiday parks in the UK.
Sun Valley is based in St Austell, Cornwall and they can be found advertised on the Hoseasons booking platform with a visitor rating of 93% and where their lodges earn up to £1800 per week.
There is an option to exit after five years at which point your original investment is returned to you from the holding company.
Amazingly, there is no Stamp Duty when purchasing and the property benefits from a zero-income tax rating for approximately a decade.
Definitely worth having a look at!
Click here for more information on this and other Royale Life properties.
