Why Let Your Second Home?
Most people who buy second homes will already be factoring the potential money from holiday rent into their calculations. After all, you won’t be living in your second home all the time, and if you’ve chosen a good location you can charge a premium to holidaymakers looking to stay there.
There are benefits to letting your second home beyond the money, and faster ways to get a full return on your investment. Fortunately, the demand for self-catering accommodation is on the rise, and has been consistently rising throughout the decade.
The trend for local holidays has moved away from catered hotels and hostels as customers demand a higher standard of service that smaller catered accommodation cannot offer. Many instead go for self-catered houses. Visit England’s numbers show a 4% rise in the average occupancy level for self-catered housing, with higher increases during the summer (as you’d expect).
One of the advantages of letting your second home is the tax benefit you receive. If you let out a furnished holiday home in the UK, your rental income gains various tax benefits even over other rental income. This includes tax advantaged pension savings, tax allowances up to £250,000, and Capital Gains Tax reliefs if and when you choose to sell your home.
These breaks vary depending on the location of the property and its circumstances, but in general the government has established favourable conditions for those looking to rent their second homes in terms of taxation.
Second homes rented as holiday homes also help the (often rural and seasonal) local economy of the areas they’re in, by bringing in tourists who will spend heavily – after all, they’re on holiday. This helps local shops, pubs, restaurants and service providers to thrive, and helps improve the area for when you want to stay in it.
However, owning and operating a holiday home can involve a surprising amount of time, expense and stress, despite its many advantages. Consider supporting companies like Perfect Weekends to help take the stress out of second home ownership, and contact us today.