The staycation is here to stay.

After two years of Covid restrictions followed by a summer of disrupted transport it’s not surprising that so many people are opting to stay local when they holiday.

All this means there’s never been a better time for canny investors to buy holiday homes. As well as the advantages that come with having a bolthole of your own in a beautiful location, there are various benefits that make buying a holiday home to rent out a financially astute decision.

  1. Buying a holiday home to rent out can be very lucrative

Holiday homes command a higher weekly rate than regular buy to let properties. In fact, one study by Which suggested that holiday properties could see an 14% return in comparison to a return of 6% for a regular buy to let property. And holiday cottage veterans, Sykes, found that the average holiday home landlord received £28,000 in income 2021.

  1. Holiday homes are classified as a business, not an investment

Because of the way in which holiday homes are classified, there are some real tax advantages for anyone thinking of buying a holiday home to rent out. For example,

  • You can offset the costs of running your holiday home against the income it provides
  • You can deduct mortgage interest from your profits
  • Your profits can count as earnings for pensions
  • If you choose to sell your holiday home, you can benefit from a range of capital gains tax reliefs such as entrepreneurs relief and business assets disposal relief.


  1. There are options to increase your income levels

Want to make your holiday home more appealing and raise your income levels? There are some easy fixes. These include adding a hot tub, making your property pet-friendly and providing high speed WIFI. Remember that the costs of these can be offset against your taxes.

  1. There are a range of options for you to let your property out

The modern holiday home owner has a range of options at hand to help them let out and manage their property. You can choose to go fully managed using one of the many holiday management companies available or use a platform such as AirBnB. If you’re local to your holiday property and want to be more hands-on, then you could manage the property yourself instead – a great way of reducing your costs.

  1. You’ve got your own little piece of heaven

The savvy property investor knows that you buy with your head, not your heart. But that’s not to say that you can’t enjoy some of the benefits of your property when you buy a holiday home to rent out. The odd weekend in your holiday let is a definite advantage, as is letting family and close friends stay in your holiday home for free or at a reduced price. Just remember that you must offer your holiday home as available for at least 210 days of the year. Of these available dates, you must let your property for at least 105 days – this excludes any time that you or family/friends are staying there for free or at a reduced rate.

Do you have a holiday home in Guildford?

Then let The Home Club manage it for you. Our friendly and knowledgeable team, network of trusted contractors, and sound understanding of the market make us the perfect partners for holiday lets and buy to let properties alike. We’ll even help you switch from your existing agent with our Easy Switch service.

Call us on 01483 608 875 to find out more.

A final word – none of the information in this blog should be treated as financial advice. If you’re interested in investing in a holiday home, please do seek professional advice before doing so.