Staycations have become a common way for Brits to spend their free time. In light of the Covid-19 pandemic, international travel destinations that are safe to travel to are constantly changing.
With international travel cautiously reopening, a relaxing break spent in the UK rather than abroad is the alternative many Brits have been enjoying.
Emma Graham, business development director at Hodge, explains: “What is clear to see is holiday lets have been hugely popular in the past six months, not only in terms of sales but also in terms of the rental owners are able to charge, and holiday lets have been a sound investment for many if they have been able to buy one at the right time and at the right price.”
Lender, mortgage, and savings bank Hodge recently analysed the cost of staycations across various regions in England and throughout the seasons.
The cost depends on the season
When choosing a local getaway destination, the season you pick to travel could drastically impact the total cost of the staycation. June through to August, also known as high season, is one of the most popular and expensive times to stay in the UK.
Hodge’s holiday lets data finds staycations in the south-east are most expensive. At high season a holiday let in this region will cost around £1,910.
Across the seven regions of the UK, the average UK rental yield for a holiday home is £1,556 at high season, £1,107 at mid-season and £795 in low season. According to recent data provided by Hodge, the average price for a holiday home in April this year was £423,537.
In contrast, Scotland might be of interest to those hoping to stack up the pounds. Famous for its highlands and mountains those who travel to Scotland would have much to do. Scotland was the least expensive place to stay during high season, with an average price for rental yields of £1,222.
Emma Graham explained: “When brokers and intermediaries come to us with a holiday let application we ask them for the average rental yield for that property, from that we can calculate how much an average rental for that region is during the different seasons.
“What our data shows is there has been some slight fluctuation in the market over the past year, with rental yield prices going up and down marginally, but that areas like the south-east and southwest are always the most profitable when it comes to running a holiday let business, as rental yields are always high.”
The most expensive regions to stay
Below is a table showing the five most expensive regions to stay during high season in the UK.
||South-east of England
||South-west of England
||East of England
||North-west of England
With August drawing to a near close, Graham concludes: “It will be interesting to see how the rental yields will change over the next 12 months as restrictions on travel ease and more people are able to holiday abroad.”