While hotels probably don’t have to worry too much about keeping their place in the tourist industry, they are definitely being given a run for their money by holiday homes. What’s more, the growing popularity of holiday homes does not appear to be driven purely by cost, although for some people that may be a factor.
Instead, their main attraction appears to be the privacy and independence they offer. You share a hotel with other people, but a holiday home you have to yourself and since it’s your house it is, within reason, your rules. It is also true in the investment world, as hotel room investments tend to be shared through fractional ownership (where investors will pool their capital in order to share the returns), whereas with holiday homes, you will purchase the whole property so you control the rental yields and take the full share of the profits.
As always, location is key, so here is a list of what we think are the best places in Britain to buy a holiday home.
This may seem a surprise as a first choice but in addition to the breathtaking scenery of all descriptions and some of the best weather in the UK (jokes about rain aside, Wales does get plenty of sunshine), property prices can be more affordable than in other parts of the country, offering the prospect of good yields.
If you’re looking purely at the holiday home market then you’ll probably want to look at north Yorkshire rather than south Yorkshire as this is the place to find the key tourist hotspots of Whitby, Harrogate, and York along with the famous dales and moors. If you’re looking for a buy-to-let investment with the potential for flexibility if you want to explore other options at a later date, then York would probably be the best choice as it is not only a major tourist destination but also has a strong local economy and is a university town. South Yorkshire is not really geared towards significant tourism although it certainly offers plenty of opportunities for other forms of property investment.
The Peak District
This may seem another surprising choice, but the Peak District came out ahead of other key tourist destinations because it runs a variety of events all year round, thus extending the tourist season. While the Peak District is probably best recognized for its national park (the UK’s first), it does offer its fair share of picturesque villages and cultural attractions. For those looking for something a little less cultural, it’s also the location of Gulliver’s Kingdom and Alton Towers. Another potential benefit of the Peak District is that it is easily accessible from Manchester, which makes it possible not only to attract tourists whose primary destination was the metropolis but also to attract residents of Manchester looking for a short break.
Honorable mentions to…
Cornwall, Devon, Dorset, Norfolk, The Cotswolds, The Lake District, and the Isle of Wight are all popular holiday destinations and all have their own unique benefits from an investment perspective. While these locations certainly have the potential to generate solid returns, they can require a relatively high level of upfront investment.