Is now the time to invest in the Holiday Let Market?
Stamp Duty Changes
Earlier this year Chancellor Rishi Sunak announced reduced rates on Stamp Duty Land
Tax (SDLT) in an effort to revive the housing market.
Property investors still pay the 3% additional home surcharge, but this will be on the new temporary rates*. Investors who look to purchase an investment property valued at the higher end of the Stamp Duty threshold could save thousands of pounds by purchasing during the Stamp Duty Holiday**.
With reduced rates of SDLT in place until March 2021 we could see a large number of
property investors utilise this opportunity for their next property venture.
UK Holiday Market
As the future of international travel remains uncertain, UK residents are looking closer to home for their well-earned breaks. 28% of British people surveyed stated they would rather Holiday in the UK than abroad in 2020. Only 8% of people said they would travel abroad for a holiday (YouGov, 2020).
A national lockdown forced many families, couples, and individuals to postpone or
cancel holidays this year, which could see the summer holiday season extend into
October.
Caroline Barrett, Key Account Manager, commented, “The Society prides itself on being a Holiday Let lending specialist with a personal, flexible and common-sense approach to lending.
We’ve been listening to feedback and responding to consumer trends in this market,
and I am pleased the Society is able to offer a range of individual and Limited Company Holiday Let mortgages during this challenging time.
Over the past few months we have seen an increasing interest in this market, leading to more enquiries and Holiday Let mortgage applications as consumers look to invest for the future.”
For information on our Holiday Let range including full terms and conditions for each
product, visit the Society’s website via the link below:
Reference:
- *Temporary SDLT rates can be found on GOV.UK linked below:
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates - ** SDLT banding can be found on GOV.UK linked below:
- https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates - MBS holiday let mortgage range can be found below:
https://www.monbs.com/mortgages/holiday-let-mortgages/ - Most Buy-to-Let Mortgages (investment type property loans) are not regulated by the
Financial Conduct Authority - Loans available to persons aged 21 or over and are subject to status and valuation of a suitable property, over which security will be required. All lending will be subject to appraisal of the financial standing of the applicants. Maximum age 85 based on the oldest applicant.
- Each applicant must be an existing owner-occupier.
- Property must not be on a holiday park or have any restrictions regarding occupancy and must be standard construction, subject to property being located in an area commensurate with holiday letting.
- Minimum income for 1 of the applicants: £25k. Income cannot be derived from rental income - if term goes beyond retirement age, we will not require proof of pension income.
- For our full lending criteria on our all our Holiday Let products, please visit
www.monbs.com/mortgages/holiday-let-mortgages
