Local holiday letting agency Bournecoast, are predicting a real boom in the holiday letting industry in Bournemouth, Christchurch and Poole this year, in part thanks to the ongoing delays in Brexit.
Bournecoast Holiday Agents say that the Brexit uncertainty is likely to result in more UK residents choosing to stay in the UK for their annual holiday and that if they do this then the local area will be a top choice. The weak pound, increasing cost of international travel, potential impact of Brexit on travel and the predicted heat waves in the UK are all factors encouraging more and more people to have UK “staycations”. This is amongst an already increasing holiday letting industry thanks to the number of changes in buy-to-let regulations and tax changes, with many landlords choosing holiday letting over the traditional long term residential tenancies.
The reduction of mortgage interest relief, the second-home stamp-duty surcharge and stricter affordability checks for mortgages mean long-term residential letting investments are not always as profitable as they used to be. Therefore, many property investors are exploring the extra income and other opportunities that come with being a holiday letting landlord.
Furnished holiday lets (FHL) can offer a number of advantages as HM Revenue & Customs (HMRC) views the revenue from these properties as earned income rather than non-earned income, if their criteria are complied with. For example, the property must be available for commercial holiday letting for at least 210 days a year and let for at least 105 days. This means that those FHL properties which meet all the HMRC criteria are exempt from the mortgage tax-relief changes and you can put relevant earnings into a pension, allowing you to benefit from tax relief. Landlords of FHL properties can also claim capital allowances rather than the wear-and-tear allowance long term letting landlords receive and there is a further opportunity to take advantage of Entrepreneur’s capital gains tax relief when the property is sold.
Des Simmons, Bournecoast’s Managing Director, said “We are seeing an increase in the number of landlords enquiring about the advantages of holiday letting and as a family run company with expertise in both holiday letting and long term letting since 1960 we are more than happy to spend time with investors to talk through all the options with them. Property investment is a very serious business, with a number of choices available to unlock the true value of a property. The best investors we deal with are those who explore all the options available to maximise their income, and realise that with the help of property experts the best option can change over time for the same property”.
Bournemouth, Christchurch and Poole are a combined resort now, each with their own unique tourism identity. This makes it a top choice for visitors and the area is a prime destination for holiday letting. With Bournemouth Beach being voted the best in the UK, 5th best in Europe and 14th best in the world (according to TripAdvisor) you can understand why visitors are set to flock here this year, and Bournemouth was described as a “model of reinvention” in a recent House of Lords report.
The rise of self-catering holiday letting portal sites like Airbnb, TripAdvisor, Holiday Letting, Owners Direct and HomeAway have also made the process of booking accommodation exceptionally easy by UK residents and international visitors alike.
Des added, “We are often asked how we compete with the big international holiday letting websites and we simply answer that if you can’t beat them you join them! The majority of the properties listed with Bournecoast are now also advertised on all the main portal sites, like Airbnb, as well. The owners take advantage of our Reservations team to manage all their enquiries and our Customer Services team to manage and assist the visitors whilst staying in the property. As we also offer options of cleaning and linen services it means landlords can choose how involved they want to be. We have the full range of landlords registered with us, from those who live next door and meet and greet their guests to international landlords who do not want to be involved at all.”
In 2020 Bournecoast celebrates its 60th anniversary and has been family run since its inception when it was established by Major & June Webb in 1960. Keith Simmons MBE, the previous Managing Director and Major Webb’s son-in-law, was then joined by his son and daughters, Des Simmons, Veronica Strongman and Anita Smith, who now run the company. As holiday letting specialists including Airbnb and TripAdvisor co-hosting and management, they make a huge impact on the local tourism industry managing approximately 300 properties across the resort. If you would like further information about the services they offer you can visit their offices in Southbourne, visit www.bournecoast.co.uk or call them on 01202 437888.