There is a growing demand for holiday home rental in Spain among potential holidaymakers, according to HomeAway.co.uk.

The report says that in 2011, booking enquiries for Spanish properties were up by 27 per cent compared to 2010, indicating a clear surge in the popularity of Spain as a location for those looking to rent a villa or apartment.

One of the reasons for the renewed emphasis on the classic choice of location for holidaymakers from the UK is seen to be the turn away from more Eastern getaways as a result of the Arab Spring.

Also taken into account is the apparent 'bottoming-out' of the Spanish property market, making investment an ever more attractive prospect for Brits looking to get into the holiday lettings sector.

Marc Pritchard, sales and marketing manager of Spain's leading house builder, Taylor Wimpey Espana, said: "The growth of the rental market has made Spain once again a popular destination for property buyers to invest in."

Clearly, Spain is continuing to prove one of the most sought-after locations among Britons looking for a summer getaway, making holiday home insurance essential to landlords planning to see their investments pay off.

However, investors from the UK may see growing competition from Europe, as others from the continent are also looking to benefit from the popularity of Spain and the current prices for which property can be purchased.

Many Brits prefer to rent villas and apartments as an alternative to staying in hotel resorts, meaning that investment in such properties has always been regarded as a good source of income.

Indeed, some landlords even opt to spend the UK's winter months in their warmer Spanish properties, returning home in the summer to let their second homes out to holidaymakers looking for a slice of the action.

With competition for property in Spain seemingly set to increase, prospective investors may look to act quickly to avoid missing out.