Holiday Lodges Provide A Credible Alternative To Traditional Buy To Let
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Holiday Lodges Provide A Credible Alternative To Traditional Buy To Let

Whilst bricks and mortar used to be the obvious choice when considering a second home, a mix of punitive tax changes, together with the revolution in the quality of holiday parks, and indeed holiday lodges, is resulting in a growing number of people turning to this credible alternative. Increases in stamp duty and the first interest rate rise in 10 years, together with the declining choice of mortgages, all make second home ownership more expensive and a little more risky. With property increases almost assured over the past 10 years, the return on the value of second homes in the UK has almost been guaranteed.

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Uncertainty driven by Brexit and the weakness in the pound has also made buying abroad a less favourable option.

Meanwhile, the holiday lodge market has experienced a revolution in both the quality of holiday parks and the quality of the lodges offered through them. Silver Bay Holiday Village, Anglesey, was a mixed camping and touring/static caravan park that has transformed over the past 4 years into an exclusive, owners-only holiday park with a luxurious range of lodges. As well as private access to the beach, facilities also include a Spa and indoor swimming pool together with a fully refurbished restaurant, bar and lounge. Recent results from the biggest operators, such as Pure Leisure, (one of the top four holiday park operators) suggest that the appetite for holiday lodges shows no sign of slowing.

The purchasing of a holiday lodge is far more simple than that of a bricks & mortar home with the contract being between the park owner and yourself. Lodges are more often purchased fully furnished and ready to move into and therefore, have none of the usual maintenance and refurbishment costs. Also the maintenance of the grounds is covered within an annual site fee, so there are no requirements to maintain gardens or the areas around the lodge itself.

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Some parks also allow owners to rent out their property, sometimes for a guaranteed return, and this can be more advantageous than traditional buy-to-let, as holiday lets are exempt from the recent tax hikes and any costs such as repairs can be claimed against earnings.

Holiday lodge owners tend to live within a two-hour drive time, however, they can also provide a UK base or represent a pure investment opportunity (dependant on the park).

Pixel8 have extensive marketing experience within the leisure sector from hotels, leisure complexes and holiday parks, for more information please contact  Jamie Watson on 0161 228 6489.


 

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