Tax For Furnished Holiday Lets | Expert Advice from PFK Francis Clark
If you are looking for important information about holiday homes and tax, we’ve teamed up with Steve York, Tax...
by Janine de Lange / Owner
Our property expert for Cornish Cottage Holidays, Janine Woods, shares her many years of expertise and knowledge about buying a holiday home in Cornwall.
In recent years, Britain has enjoyed a staycation boom with more of us choosing to holiday in the UK rather than abroad. Our holiday homes in Cornwall have benefitted from unprecedented levels of demand and are achieving excellent rental yields for owners.
While buying an investment property can be a rewarding and highly lucrative endeavour, it is important to do your homework. So, if you’re thinking of buying a holiday home in Cornwall, this is the ultimate guide to make the journey to successful holiday let owner as easy as possible.
Read on for detailed advice buying a holiday home in Cornwall, or use our quick links to navigate to a particular topic:
Cornwall is renowned for being one of the most popular holiday destinations in the UK. With its unique climate, golden beaches and sunny seaside towns, it’s easy to see why holiday makers flock to Cornwall annually. But look beyond the coastline and you’ll discover elite galleries, world-class eateries and plenty of unique attractions.
In addition to the more obvious appeal of this holiday destination, we’ve chosen to highlight a few unique factors why we think Cornwall is an ideal place to invest in a holiday property.
Thanks to its south-westerly aspect and oceanic setting, Cornwall enjoys a temperate climate, with the mildest and sunniest weather in the UK. While best known as a summertime holiday destination, the warmer winters offer visitors that year-round appeal. The county has plenty to offer throughout the year and its popularity has superb potential for holiday lets in Cornwall. With this unique appeal you’re likely to have more visitors and an almost guaranteed steady income stream throughout the year.
With the changing attitudes to travel and the ongoing uncertainty of travelling abroad, many more of us are enjoying the convenience of holidaying within the UK, choosing to rediscover the blissful scenery of our national coastline and countryside. According to the Sykes Staycation Index 2021, Cornwall has been named one of the top ten fastest-growing staycation destinations this year. So, it’s hardly surprising that this rising popularity has impacted the attractiveness of holiday letting as an investment opportunity in this county.
The biggest motivator for investing in a holiday let is that you can combine owning your dream holiday home with running a successful business and offsetting the cost of your own holidays. Buying a holiday home in Cornwall is for many an aspiration, so having the opportunity to have your own dream holiday home as well as lucrative letting business in this amazing county is an obvious appeal.
With an investment property in Cornwall, not only will you own a holiday cottage for yourself and your family to escape to, but you could also make a healthy profit by renting it out to others. By letting your cottage out to holiday makers, you can generate a valuable source of extra income, plus your holiday home will benefit from a range of capital gains and income tax relief options. To understand a bit more about the tax reliefs and benefits you could qualify for, read our comprehensive blog on tax for furnished holiday lets.
Aside from your personal preference, when buying a holiday home to let, it is important to choose a location which has appeal for holiday makers. A prime tourist location will ensure a high volume of bookings and a good return on investment.
Generally, the best locations are coastal, preferably with a sea view, and within walking distance to a beach or the coast path. The most popular locations reported for 2021 are by the seaside, while the other half are popular walking destinations. Cornwall has the best of both, which helps with its year-round appeal!
However, let’s not forget areas of natural beauty, peaceful countryside and picturesque towns and villages, which offer a different appeal. With the scenic countryside, rugged coastline and thriving tourism industry, there are plenty of fantastic locations to choose from in Cornwall.
Close proximity to good amenities is one of the most influential factors in a guests’ choice of holiday home. Situated within easy reach, or better still, walking distance to a pub, restaurant, shops and visitor attractions will boost a holiday property’s desirability and booking performance!
For a look at the most lucrative, up and coming locations in the county, read our in-depth blog on the top 6 places to buy a holiday home in Cornwall.
We successfully let all types and styles of holiday homes, character cottages and hyper-modern apartments as well as grand country piles, rustic barns and luxury pads. Ultimately, it all comes back to giving holiday makers what they want.
Here we share some of the best money-earning holiday features chosen by our guests.
Identified as one of the top three things influencing Brits’ choice of staycation accommodation, holiday lets with some form of outdoor space. Whether it is a garden, patio, terrace or a balcony, outdoor space is a top priority for holiday makers. Guests want to make the most of the sunny weather on holiday, so it’s natural that a holiday home with an outdoor area is not only a top priority but can command a premium rate.
If you are buying a property to renovate or make improvements, it can be worthwhile budgeting to finish it to a high specification. Pampering your guests with one or two luxurious added extras in your holiday cottage is yet another great way of enticing them to stay with you again and again. Plus, they can also help to extend the season beyond the peak weeks. Extra perks in your holiday let such as a private gym, a swimming pool or a sauna are just a few ways that you could add value to your holiday property and give your property a consistent year-round appeal.
Log burners or properties with open fires are extremely popular with holiday makers. Installing a log burner will give your property added appeal, boosting your low season bookings and allow you great all year-round occupancy.
WiFi is one of the most requested features and could be the deciding factor when guests are debating one cottage over another. One third (33%) of Brits consider it a priority with a 44% increase in bookings for properties with WiFi this summer. Cornwall is reasonably well connected but it is advisable to check if WiFi is available at your chosen property.
We have seen a growing awareness of the human impact of travel with guests wanting to book more sustainable holidays. If you are buying a renovation project, consider giving it some eco-credentials. For more information on positive changes, you could implement to make your holiday property environmentally sustainable, read our blog on how to make your holiday home eco-friendly.
Providing parking is essential and is often a key deciding factor for guests when booking a holiday property. Having a designated parking spot means peace of mind knowing they can return from a day out and be able to park with ease. In towns and villages where this simply isn’t feasible, it’s worth checking whether you can organise a parking permit for on-street parking or for local car parks.
Synonymous with luxury and relaxation, a hot tub can help place your property way above others in a potential guest’s shortlist. They offer an extra layer of luxury to a holiday and are the perfect way to enhance an already relaxing break. Not only do hot tubs increase the likelihood of bookings during off-peak periods, but they often enable properties to command a higher weekly price. In 2021 properties with hot tubs receive on average 62% more bookings and can earn up to 54% more revenue than those without!
To help your decision process when buying a holiday property in Cornwall, it’s important to consider how to attract guests and generate a lucrative flow of bookings. Do you want to cater for families, groups or couples? Based on this information, it’s easier to understand what type of investment property would best suit your goal.
As the nation reunites with family and friends, group bookings for this summer are up 35%. So, buying a four or five-bedroom property will attract groups and multi-generational families with children of all ages. Aim to offer ample space for all guests to eat, sleep and relax comfortably with a good ratio of living space to bedrooms.
If yours is a one or two-bedroom holiday home, it will be best suited for couples or small groups of families and friends. For many guests, a holiday home is the perfect place for special occasions such as a romantic getaway, birthday, anniversary or honeymoon. They are willing to pay a premium and expect the price to reflect the quality with good investment in interior design, fixtures and fittings. Bookings from couples or groups of couples make up 41% of staycation bookings and can be your bread and butter during the off-peak months.
Cornwall is a very pet-friendly county that attracts holiday makers and their four-legged friends all year round. We’ve seen bookings for dog-friendly properties this summer rise by 40% and earning 11% more income than those who don’t accept pets. Allowing pets will increase the occupancy potential of a property, so it is important to consider this when conducting your property search.
It is a good idea to speak with us to establish what the potential rental income might be from your investment.
If you require financing to buy your holiday home, you will face increasingly stringent affordability criteria from mortgage lenders. They will often require a letter from a reputable holiday letting agent to confirm the anticipated gross weekly rental for the low, mid and high seasons. We are a recognised source for lenders and can provide a letter including an annual projected income to support your mortgage application.
If you would like to know how much your investment will return, let us help you. We have been managing and marketing holiday homes successfully in Cornwall for over 50 years. We have the experience and knowledge to advise you on buying a holiday let and maximising the return on your investment.
No matter what stage of the journey you have reached in letting your holiday home we are here to ensure you make the right decisions. Cornish Cottage Holidays offer a bespoke service for those that are looking to buy a holiday let and can help you every step of the way. Use the knowledge and experience of our team, who can tell you the best places to buy and are able to match you with the property that suits you.
Read our blog on choosing a holiday letting agency in Cornwall.
We are well connected with some of Cornwall’s leading estate agents and can help put you in touch with the right people if you are thinking of buying. We can also work alongside estate agents to organise visits to a property you are thinking of buying, to help us provide accurate rental projections.
There are many factors to consider when investing in a holiday let; the costs, understanding the market, rental rates and what your property is going to look like, to name just a few.
If the thought of running a holiday let feels daunting, you don’t have to do it all yourself. Cornish Cottage Holidays has a team of industry experts who specialise in the self-catering holiday market to help guide you through your letting journey.
We understand that you may have lots of questions as you are thinking of buying a holiday home in Cornwall, that’s why we’ve created some helping guides to answer any queries that you may have, simply click the links below to find out more.
For more information about letting your cottage with us, visit our Let Your Cottage page or contact our knowledgeable team on 01326 336773 (select option 2).
*Statistics provided by Sykes Staycation Index 2021
Discover how a local brand with national reach can work for you. With over 50 years of letting experience, we pride ourselves on delivering the bookings you deserve.
Find out how we can work together. With over 25 years’ experience, our local expertise will give you peace of mind and bring you the bookings you deserve.
by Janine de Lange / Owner
I’ve had the privilege of living in the beautiful South West since 2010, and in my opinion there’s no better place in the worl...
Read More About Author
Sign up to receive exclusive offers, competitions and the latest news to your inbox, and you'll be entered into our monthly prize-draw 3 times!
If you are looking for important information about holiday homes and tax, we’ve teamed up with Steve York, Tax...
New to holiday letting, or looking to better your marketing strategy and maximise your holiday cottage bookings? Read our...
As one of the fastest-growing holiday locations, Cornwall tops the list of desirable destinations to own a holiday cottage....
