Dale Anderson, Managing Director at Fabrik Invest, commented: “There’s an exciting long-term future ahead for UK holiday lets. The current staycation boom has served to focus attention on this type of investment and its advantages.”
Understanding the longer-term nature of the investment involves a range of considerations. At The Hideaway by Liv Lodges, for example, forecasts have been based on an average of 65 per cent occupancy throughout the year. This is a pre-Covid occupancy level; many lodge parks are currently operating at 80 per cent occupancy or higher. By basing income projections on pre-Covid levels, investors can be assured that the long-term forecast is a realistic one.
Remote working is adding to staycation boom
Another factor at play is the shift to remote working. A survey by HR software company Personio earlier in 2021 found that only one in three UK workers had returned to the office at least part-time (compared to 59 per cent of workers surveyed in Europe). This continuation of home-based working means that companies need to find other ways to ensure their employees connect. For many, corporate breaks will be the ideal solution.
“The longer-term nature of travel restrictions means a staycation boom not just for this summer but in all likelihood for next year too, and potentially the year after,” said Anderson. “Even once restrictions are lifted, we anticipate that many families will still feel reluctant to fly and so will look to take breaks in the UK instead. Add to that those who choose not to fly for environmental reasons and those who can’t or won’t have the Covid-19 vaccine, and so likely won’t be able to fly, and the long-term prospects of the holiday let market here in the UK look very healthy indeed.”