The Holiday Let Outlook Report 2022 analyzes Sykes Holiday Cottages revenue data, along with current prices and house price growth, to dig deeper into the long-term investment potential of holiday letting across the UK. United.
Location and amenities are two of the most important factors in the success of a vacation home. So, in the listed regions, any property must also be well located and offer desirable facilities to enhance the investment potential.
The report also features consumer research, booking figures from Sykes and information from rental data and analytics firm AirDNA to paint a picture of the vacation rental market.
And according to the survey of British holiday home owners commissioned for the report, a quarter only started renting during the pandemic, with the vacation rental boom fueling a rise in second home owners and investors entering the market. the market.
Indicators suggest a continuation of the boom with bookings for Sykes vacation rentals in 2022 up 35% from pre-pandemic levels.
The consumer survey found that 84% of vacation owners said bookings for 2022 were stronger than ever before, with the same number confident the trend will continue to grow over the next five years.
The report also highlights that, compared to the same period in 2021, Sykes has seen new owner inquiries from prospective vacation home investors nearly double, increasing by 78% in 2022.
With stay-at-home holidaying on the rise, Sykes’ report reveals the average holiday rental owner earned £28,000 in income from their holiday rental last year, up from £21,000 in 2019.
For those weighing where to invest in the short term, Cumbria and the Lake District top the list of highest earning holiday hotspots according to income figures from Sykes, with holiday rentals bringing in an average income of £44,000.
Devon and Dorset follow close behind as the highest earning regions, with an average annual income of £35,000 and £32,000 respectively, while the Peak District has lost its top spot, falling to fourth place in the General classification.
For those looking to maximize the revenue potential of their vacation rentals, Sykes’ analysis found that a hot tub is the biggest lucrative feature they could have – adding around 49% to annual revenue.
Income figures also suggest luxury amenities such as open fires could boost incomes by an average of 19%, while a pandemic-fueled surge in pet ownership has allowed pet-friendly properties now earn 9% more, on average.
Jamie Lane, vice president of research at short-term rental data and analytics company, AirDNA adds: “Vacation rental demand for 2022 is higher than previous years and, as Sykes’ report shows , we expect the sector to move from recovery to expansion. fashion this year.
“Staying informed as the travel industry begins to normalize will allow new investors and existing owners to make smart decisions and add supply in the right places, evolving and adapting to changing times. consumer trends to deliver memorable experiences in unique properties.”
To view the full vacation rental outlook report, visit: https://www.sykescottages.co.uk/letyourcottage/advice/article/holiday-letting-outlook-report