Knight Frank Article - the revival of the second home market

Useful report with a number of interesting facts, such as:


According to the ONS, in the three years up to the beginning of 2010, the number of nights spent by tourists in catered holiday accommodation in the UK grew by a modest 1.3% from 309m to 313m. However, the growth in nights spent in self-catering apartments rose by 67% to 9.2m and the number of nights in self-catering houses, cottages and lodges grew 20% to 20.8m


Read the report

The market sell off that never was - Daily Mail article

I'm sure all holiday let home owners breathed a huge sigh of relief when it was recently announced that the government will not scrap the tax benefits of holiday lets.

However they will certainly be tightening the rules and properties will have to be available more of the year for holidaymakers to hire (minimum 210 days), and be priced attractively to ensure they obtain a minimum number of lettings (105 days).

Setting a property up as holiday let brings tax benefits but if done properly is a serious undertaking.  The government aims to ensure that they are run as businesses, not as a loophole in order to save on Capital Gains Tax.  As the acccountant in this article eloquently puts it:  'Basically, holiday home owners must not take the mick.'

Read the article

Change of use from holiday park to permanent

Here is a case in Wales of a successful overturning of a council-led holiday restriction so that houses can be turned from holiday use to permanent.  There are a large amount of holiday restrictions applied, especially where hotels are converted into apartments for example, and this often means that the sale prices of such properties attract VAT - very off-putting to buyers.

Read the full article here

Self catering not so easy

There's an article in the Times about self catering being hard work and not being the road to riches.  They are right;  in recent years the market has become more competitive, with it harder to guarantee occupancy and customers more demanding.

On top of this property price rises have reduced percentage returns - your property may now be worth £500,000 as opposed to £250,000 but rents haven't doubled.

It is possible for properties to do well but you need to:
- Find a property in a good location with clear appeal in photographs - internally, externally and with views
- Make sure you pay a good price for it
- Fit it out well but stay on top of your budget
- Maintain standards
- Spend a lot on marketing or find a good agent
- Expect to offer last minute discounts
- Treat your customers well

Read the article:
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article6945288.ece?token=null&offset=0&page=1

Growing trend for self catering in the City

The Telegraph chat to a couple who have set up a small business renting out houses and apartments in London on a short-term, holiday basis. It seems alot of the takers are from Down Under.

Read article

Some good news for South West housing market

According to recent Nationwide figures the housing market in the South West is recovering more strongly than anywhere else in the country.

New figures show house price increases of nearly 5 per cent in the past three months.

Read article

Hoseasons think that 'staycation' will fuel demand in 2010

Hoseasons are seeing demand for 2010 UK holidays up 50% on the same point last year

Read full article

Rocklands nears completion

I went to visit Rocklands in Newquay last week and was once again blown away by the views - these have to be the best views in Newquay bar none. It's nearly ready to go with the firsts guests staying at the end of the month. They won't be disappointed. The location is close to the heart of town and the building towers over Tolcarne Beach. The apartments with balconies overlooking the beach have an amazing vista. The communal roof garden has a hot tub and loungers - in the height of summer this will be a great place to feel as though you are really in the heart of things, yet on a different level. Rocklands Newquay

BBC article on the budget tax changes

The proposed changes to the positive tax position on holiday lets is not good news for holiday home owners.

South West agencies are lobbying to get this proposal overturned.

Read the BBC article on the potential impact on the self catering holiday market

Second home owners feeling the pinch

The Times has an article on how second home owners, feeling pressure from redundancy and investment losses are looking to rent out homes. This will increase the supply but hopefully demand will keep up!

Read the Times article