More landlords are considering holiday lets as changes continue to affect traditional buy-to-let investments, according to mortgage brokers. Research from Cumberland Building Society's inaugural Holiday Let Index indicates that 88% of brokers have seen an increase in holiday let mortgage enquiries over the last 12 months, with 32% reporting a significant rise.
This trend is not limited to new investors, as experienced and professional landlords are also reassessing their portfolios. Mark Long, managing director at Pegasus Insight, which conducted the research, noted that this momentum suggests a potential evolution in the sector, with holiday lets offering exposure to a different part of the property market and an alternative income model.
Grant Seaton, Cumberland's head of intermediary lending, highlighted that demand for holiday lets is increasing despite various tax and regulatory changes impacting property investors. Higher yields compared to traditional buy-to-let were the leading reason for clients entering the holiday let sector, cited by 32% of brokers. Regulatory changes affecting traditional buy-to-let were the second most common reason, identified by 16% of brokers.