Despite travel restrictions lifting, the trend for vacationing closer to home is expected to continue into 2022 and beyond. If you’re tempted to invest in a holiday let on the South coast, Bognor has a lot going for it.
The town has, once again, been voted the sunniest location in the UK, with its golden sands and blue seas offering holidaymakers much simpler arrival and departure arrangements when compared to flying overseas.
Even though we’re heading towards winter, now could be the perfect time to purchase a holiday home – offer soon and you’ll complete in time for the Easter and summer rush. Additionally, there are potential price savings when buying out of season but you’ll need to act fast.
Off season advantages
Searches for holiday homes for sale in the first quarter of 2021 grew by 73% year-on-year and some 11,000 second homes were converted into holiday lets ahead of the summer, indicating there could be less competition for properties before this Christmas.
While it may feel unseasonal to be assessing bucket and spade appeal when most are looking ahead to Bonfire Night and even Boxing Day, you can use the off season to find your ideal holiday let in Bognor Regis, guaranteeing maximum summer success in 2022.
With its sandy beaches, 2.7 mile promenade and ample attractions, Bognor Regis has long been a tourist destination for ‘staycationers’. In fact, it’s often described as the quieter, more child-friendly alternative to Brighton.
There’s also plenty of green space and a decent town centre that has everything holidaymakers and locals alike need, with the busier city of Chichester just up the road for added variety.
The resort, with its town centre apartments, quaint Victorian seaside properties and Regency-style terraces, appeals mainly to families but also to young professionals who want somewhere easily commutable from London to escape to for a weekend break.
And if you’re a dog lover, look no further. Bognor Regis has been dubbed a dog-friendly destination for UK holiday-makers, so you might want to consider this when setting up and advertising a holiday let.
Seaside locations are becoming increasingly popular during winter as well, with bracing beach walks and even open water swimming used to blow away the cobwebs. If you can find a ready-made holiday home to complete on before 25th December (ask us about chain-free properties for sale), you will enjoy great rental returns, as property management platform Guesty reports that nightly prices for Christmas staycations are up 153% compared to 2020.
Holiday let advantages
One of the biggest benefits of investing in a holiday home is that almost all of them are covered by the small business rate regime in England, meaning owners pay little or no property taxes.
The cost of furnishing, management and replenishing in-home products - such as shampoo and shower gel - can all be deducted from your pre-tax profits and, depending on how long your holiday home is let for, the property may also be exempt from council tax. Additionally, holiday lets are subject to a lower rate of Capital Gains Tax 10%.
In terms of income, you could earn more from a week’s holiday rental than in a month or even two from a standard private buy-to-let. Holiday let yields are, on average, 30% higher than those attached to traditional rentals, and the average occupancy level is between 20 and 24 weeks per year, leaving you time to repair, repaint or even stay in the property yourself.
The South East offers the highest average yields compared to the rest of the UK, potentially earning you £1,910 a week during peak holiday periods. And despite property prices in popular staycation destinations, particularly on the coast, having soared recently, Bognor Regis remains one of the most affordable locations to buy a holiday home.
Lenders have also started to catch on to the UK’s transformation into a ‘staycation nation’, with 25% more mortgage products available to holiday home investors now, when compared to April 2021.
Extra in, extra out
Of course, a holiday home’s running costs are higher than a traditional rental. As an owner, you are not only responsible for all the utilities but also the management, which is much more intense considering the frequent turnover of guests.
You need to consider what value you put on your time, which will be taken up with changeovers, cleaning, guest liaison, repairs, maintenance and emergency call-outs. It’s proven that holiday makers tend to take less care when on vacation (more than one in five holiday lets experience damage) so expect a degree of accidental damage.
Then there is continuous property marketing. This will often require your own website, social media and high-quality photography, as well as the upkeep of listings on platforms such as Airbnb and Vrbo, and on sites such as homeandawayholidays.co.uk.
Of course, you can delegate all of this to a management agent but expect to pay at least 10% of your income for the pleasure.
Find your Bognor Regis holiday home
Many holiday let operators find their investment highly rewarding, with profit in the long- term from property appreciation and on a monthly basis from the rent. The experts at White & Brooks’ Bognor Regis branch live and breathe the local area, and recognise a good holiday home investment when they see one.
Whether you’re a local resident looking to find a nearby property you can manage yourself or you live out-of-area and feel a staycation synergy with Bognor Regis, we can help you take that first step towards buying a holiday let. Let’s chat today.