Investment: Second home owners see the light - Ross Elder, HolidayLettings.co.uk

Second home owners see the light

2009 has been a year of highs and lows for second home owners. Many of those already on the second home ladder have seen the light, i.e. the intrinsic value lying in their homes, and increasing numbers have started letting out their second homes. This switch of mindset is ensuring that supply of self-catering accommodation keeps growing and that more income is being generated for individuals and the economy. As many belts have tightened in 2009, particular shifts have been apparent in the mindset of British second home owners.

UK holiday home inventory has doubled in 2009 and the hunger for what has become known as the ‘staycation’ has more than supported this increase in accommodation supply, with enquiries for UK holidays up 75 per cent year on year. The UK holiday home market, in most cases, has a longer season because of the ease of access for short breaks, long weekends and half term getaways. UK holiday homes also prove enormously popular over the Christmas and New Year periods; Scotland and its Hogmanay celebrations are particularly popular.

We recently undertook a survey of our advertisers to gauge just how much the players in the holiday home advertising marketplace had shifted over the last 12 months, since we did our last survey. Some of the findings certainly confirmed our suspicions that more long standing second home owners have entered the market:

Successful formula

Why does it work so well?

• 70 per cent of Holiday Lettings advertisers visit their second home less than six weeks each year
• It covers running and maintenance costs, for some it provides additional income, for other is supports their livelihood where they have been affected by redundancy in recent months

What about the guests?

As more owners make their homes available for short term lets, holidaymakers have been filing an orderly queue. Holidaymaker enquiries sent through the site this year are up 40 per cent. The significant attraction for people opting to rent a holiday home over booking a hotel room or two is ultimately value for money; more space, flexibility, individual bedrooms and no middle men are the additional benefits that not only make holiday home letting cheaper per person, but an overall more comfortable experience.

Irrespective of personal budgets, there is a holiday home to suit every group size, socio-economic demographic and destination requirement. While the industry is also relatively recession proof, it will also come out on top once national economies recover themselves, because of the aforementioned added benefits. Once you’ve had a chambermaid-free holiday and been able to watch the TV from the sofa rather the bed, and put the kids to bed and still have a living room to relax in, there’ll be few going back to the confines of hotel rooms – however spacious one can afford.

Destinations to watch in 2010?

The growth in the choice and number of available holiday homes is expected to still be dominated by long standing owners switching to holiday lettings rather than any significant growth from new second home purchases in 2010. This is likely to remain the case until confidence in the property market improves. Locations that have performed well, appealed most to holidaymakers in 2009 are likely to continue their prosperity into 2010, but there are also a few key places to keep an eye that are growing in popularity and are associated with international events next year:

• South Africa – 13 times more enquiries have been sent through holidaylettings.co.uk for accommodation in South Africa next June since the draw was made on December 4th

• Turkey – benefitting from the euro/sterling exchange rate battle and offering the Mediterranean holiday ideal on a Lira budget

• Croatia, Malta, Greece – despite their inclusion in the euro, these destinations are scoring high in the advanced booking stakes; advance enquiries for Croatia are up 113 per cent year on year, Malta 94 per cent and Greece 74 per cent – low cost of living while in the country is thought to be the best explanation for this

• UK – wallet-conscious Britons will not be deterred by this summer’s damp; demand for UK holiday homes is yet to show any signs of falling enthusiasm

• Florida – exchange rate dependent as always Florida, however, offers tremendous value for money accommodation and fantastic all-round family appeal

Ultimately, savvy holiday home owners will continue to do well in this marketplace as they advertise their homes with engaging copy and enticing photography that tug at the holiday heart strings of potential guests and play heavily on the value for money element of renting a holiday home over booking a hotel room.

Ross Elder

A buy-to-let investor and holiday home owner, Ross is passionate about doing holiday home letting effectively and efficiently with oodles of customer care. He is a keynote speaker on successfully marketing and managing holiday home lettings and instils much of his drive into the team at Holiday Lettings. Founded by Ross and his business partner Andy Firth in 1999, the company is now the busiest holiday home website in the UK