THE delay to Brexit could fuel a boom in the holiday letting industry, it is claimed.
Bournemouth-based letting agency Bournecoast believes more landlords will get into the sector as a rising number of people choose to stay in the UK for their annual holiday.
The weak pound, the uncertainty over European travel arrangements and talk of heatwaves at home are all believed to have contributed to a rise in “staycations”.
Bournecoast says this will further boost the holiday letting sector, which has already gained more landlords because residential letting has been made less attractive by changes to buy-to-let regulations and tax.
Des Simmons, Bournecoast’s managing director, said: “We are seeing an increase in the number of landlords enquiring about the advantages of holiday letting.”
He added: Property investment is a very serious business, with a number of choices available to unlock the true value of a property. The best investors we deal with are those who explore all the options available to maximise their income, and realise that with the help of property experts the best option can change over time for the same property.”
HMRC regards revenue from furnished holiday lets as earned income if its criteria are complied with. As long as the holiday property is available for least 210 days a year and let for at least 105 days, it is exempt from mortgage relief changes that took effect in 2017. The earnings can also be put into a pension, with tax relief.
Landlords can also claim capital allowances rather than the wear-and-tear allowances that long-term letting landlords receive and can take advantage of entrepreneur’s capital gains tax relief when a property is sold.
The rise of holiday “portals” like Airbnb, TripAdvisor, Holiday Letting, Owners Direct and HomeAway has made the booking process easy, Bournecoast says.
Mr Simmons added: “We are often asked how we compete with the big international holiday letting websites and we simply answer that if you can’t beat them, you join them. The majority of the properties listed with Bournecoast are now also advertised on all the main portal sites, like Airbnb, as well.
“The owners take advantage of our reservations team to manage all their enquiries and our customer services team to manage and assist the visitors whilst staying in the property. As we also offer options of cleaning and linen services it means landlords can choose how involved they want to be.”
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