Reasons why now is the best time for expats to consider UK holiday lets
We have seen that provisional data released in February from Visit Britain suggests that there were an estimated 19.5m inbound visits to Great Britain in the first half of 2024, up 4% vs 2019 and up 11% vs 2023.
£13.4bn was spent by visitors over the first 6 months of the year, which is up 15% vs 2019 albeit a slight reduction of 1% vs 2023.
This UK holiday activity by both domestic and overseas visitors, continues to inspire and motivate prospective investors with thoughts of owning a holiday home.
UK property investment, with potential for capital appreciation and rental income has resulted in our mortgage lenders experiencing a noticeable increase in holiday let enquiries in recent months, with a growing number of enquiries coming from an expat community.
Owning a UK based holiday home provides expats with a convenient, flexible bolthole and the ability to be close to family and friends, allowing for the ad hoc visits or extended stays.
Some lenders might hesitate in offering holiday let products to expats due to their own perceived risk or complexity, but, as independent expert brokers in this field, we know the specialist options which available for this expat market. These lenders offer a more nuanced approach instead of relying solely on standard interest rate stress tests.
Properties must still qualify as a Furnished Holiday Let under HMRC definitions and be available for letting for 140 or more days each year. Airbnb arrangements may also be considered, subject to terms too.
As with many specialised products, each lender takes a distinct approach, with criteria that can differ significantly. This highlights the importance of a strong relationship between lenders and advisers and clients in order to ensure the best outcomes for different client types.
With the right support, expat clients can secure their ideal UK holiday retreat.
For detailed insight and information and product options for your expat mortgage enquiries, contact our holiday let mortgage experts at advice@hchfs.com
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