Holiday home owners opt for property over pensions

Around 26% of holiday lettings advertisers who completed the company’s annual customer survey said that their primary reason for purchasing a second home was as an investment, instead of a pension or savings account.

Of these people:

• One third purchased the holiday home using a local currency mortgage
• A further 33% bought their second home with cash / savings
• 20% raised the funds needed by remortgaging their UK home

When asked how their investment is fairing:

• More than half (52%) said their primary reason for letting the property now was out of “need” to cover the running costs
• 26% are letting the property to make a profit
• 22% opt to let it because they do not use it enough themselves
• Of these respondents most have owned their holiday home for three to six years and have been letting it for two or three years.

Kate Stinchcombe-Gillies, spokesperson for holidaylettings.co.uk, commented: “In the height of the property boom when the majority of today’s holiday home landlords purchased their second homes, property was indeed an attractive long term investment and it is therefore no surprise to see that around a quarter of our customers made that choice.

“What has changed is the increasing need for the property to pay for itself, either to pass time until the market revives and a profitable sale can be made, or to ensure that the home doesn’t cost when it was intended to fund a future lifestyle. What these ‘accidental landlords’ support in the meantime is growing demand for private rental holiday accommodation.”