With all the current turmoil in the private rented sector (PRS), and with inspiration from the UK’s current heat-wave, it could become likely that landlords will move their focus to holiday let investments, instead.
According to the Country Land and Business Association (CLA), the Government’s recently announced plan to implement mandatory three-year tenancies is specifically influencing buy-to-let investors to consider holiday lets.
The CLA, whose members provide nearly 40% of all private rented housing in rural areas, does not feel that forced minimum contracts are necessary. The association believes that rural lettings already provide a longer-term home for tenants.
The results of a survey answered by CLA members with residential lettings have revealed that average tenancies in rural areas last for 7.6 years. More than a third have also retained the same tenants for ten years or more.
CLA Housing Adviser Matthew O’Connell said: “The private rented sector has substantially increased and people are renting for longer, but the current legislative framework already offers opportunities for longer tenancies which meet the needs of both landlords and tenants across the rural market.
“Overly prescriptive tenancy lengths could be highly disruptive to the rural economy, threatening the short-term lettings market for seasonal workers in agriculture and tourism. An excessive regulatory burden could also lead to potential long-term rental homes being lost as landlords opt to let them as holiday accommodation or sell, further reducing the supply of rented homes for those struggling to get on the housing ladder.”
If you are tempted to invest in holiday lets, make sure that you have the appropriate insurance. Standard home insurance may not cover your holiday home completely. The fact that you are letting the property to holiday makers could also require a specialist policy. It is worth taking a look at the Holiday Home Insurance options currently on the market, such as the one Just Landlords offer, to ensure that you make a fully informed decision.