In the 1990s many people had the idea that buying a second home could give them holidays rent free with the prospect of a healthy capital gain. Estate Agents Savills reckon that the number of second homes climbed by 40,000 in the ten years to 2006. Now that the boom has ended some owners are looking to their properties to generate income, at least to cover the maintenance and basic outgoings. A website called holidaylettings.co.uk had 77% more English properties on it books in December than in January 2008. The question is, will you be able to find enough holidaymakers? It rather depends on the location, quality and rental price of your property. In some areas the market seems oversupplied with holiday lets.
If you wish to sell your holiday home you will not be encouraged by a recent comment from Knight Frank who say that demand for second homes has dropped in the last 12 to 18 months. Offering the house on a longer term tenancy may be attractive because of the steady income stream, although of course it will no longer be available for family holidays. At least the main bills will be covered.
Be sure to check that your holiday home insurance policy covers you as the landlord of a long term tenancy.
If you are thinking of renting your property and need for information about landlord insurance contact click4quote.