UK Holiday Property Investment
7% fixed NET return1
The UK holiday industry has shown signs of a strong recovery from the disruptions posed by the global pandemic. Research by the World Travel & Tourism Council (WTTC) forecast that the UK’s travel and tourism sector’s contribution to the economy could rise to £192 billion in 2022. The British public have always been a staycation nation with 123 million domestic holidays taken in 2019 over 93 million international holidays and the current cost of living crisis and continued disruptions to international travel is likely to strengthen this sentiment.
Away Resorts, a fast-growing UK holiday brand with 23 holiday destinations in the UK, have introduced a select collection of long-lease holiday properties in some of the UK’s most popular visitor locations, giving investors easy access to the UK holiday market with an attractive 7% NET fixed return.
Privately owned and private equity backed, Away Resorts has launched an ambitious programme of acquisition in the UK holiday sector having acquired 27 locations across the UK, which are benefiting from a major multi-million-pound investment programme, designed to create new vibrant hospitality and leisure facilities, with a stunning range of accommodation options.
Alongside a strong holiday lettings offering is continued growth into the holiday home ownership sector, with properties currently available at 19 UK locations providing a variety of property options from lifestyle choices through to lifestyle investment options and innovative investment portfolio products including a mortgageable2 holiday home product at three of their popular locations: The Lakes Rookley and The Bay Colwell on the Isle of Wight and Retallack Resort & Spa in Cornwall.
Each location offers a UK holiday property asset that can be purchased alongside an investment opportunity that offers an attractive 7% fixed NET return for 3-5 years and limited personal use; or you can opt for a variable return and the opportunity for greater personal use. Both options are underpinned by an asset purchase that differs from typical resort-based holiday home opportunities, in that it is sold with an up to 999-year lease, can be bought with a mortgage; plus, the properties also have capital appreciation potential.
Investors can choose from attractive, recently refurbished brick-built cottages on the Isle of Wight from just £155,000 to luxurious, boutique barns in Cornwall from £295,000. All properties are sold fully furnished and ready to let, with investment purchasers avoiding any ground rent, service charge or utility costs for the period of their investment agreement.
Resort based properties, with their collection of on resort facilities remain popular holiday options throughout the year at sought after UK destinations as they promise easily accessible “whatever the weather” facilities and no fuss, family-friendly catering options. This combined with a fully operational and busy 12-month season is fantastic for holiday home owners using their own holiday home but also makes their property an attractive proposition as a holiday let. With Away Resorts’ managed letting service and investment buying option, owners are encouraged to take full advantage of this, whilst also avoiding any second home purchasing restrictions which may have been imposed locally.
Investors in the UK holiday property market are also able to take advantage of favourable tax regulations3. If you let properties that qualify as Furnished Holiday Lets, subject to certain criteria, you can claim in areas such as:
• Capital Gains Tax Relief for Traders
• Business Asset Rollover Relief
• Entrepreneurs’ Relief
• Relief for gifts of business assets and relief for loans to traders
You are also entitled to plant and machinery capital allowances for items such as furniture, equipment, and fixtures and the profits count as earnings for pension purposes. A correctly supported claim for capital allowances can mean that a FHL will pay no tax on its rental profits for potentially 4 – 8 years. The criteria for FHL are all met though the Away Resorts’ investment buying option and can also be met using the Managed Letting Service, depending on how often you opt to use the holiday home yourself.
To find out more about the holiday property investment opportunities offered by Away Resorts or to chat with a sales adviser call: 01637 226 097, email: [email protected] or visit: https://www.awayresorts.co.uk/holiday-homes/buy-to-let/investment/
1The Away investment product is available on selected properties at selected resorts and exclusively to qualifying investors, terms and conditions apply.
2If you do not have a mortgage or finance provider, we may be able to introduce you to one. Your capital is at risk and you may not get back the amounts you invest when you come to sell the property. Your property is at risk of repossession if you do not keep up your payments as they fall due.
3You should take independent financial advice from a suitably qualified adviser.