Rising costs push second homeowners toward holiday lets

Most second homeowners are now considering letting out their properties due to mounting financial pressure, claims new data.

A survey by Sykes Holiday Cottages reveals  71% of second homeowners who don’t currently rent out their properties are now more likely to do so, as cost pressures and council tax surcharges mount.

More than half (56%) are actively considering short-term holiday letting, two in five (39%) are exploring long-term rental, and one in five (20%) are thinking about selling.

Properties sitting empty for most of the year

According to the report, there are around 280,000 second homes in England that are not regularly let out on a commercial basis.

Based on average tourist spending, if these properties were regularly available to holidaymakers, they could generate up to £10.5 billion a year in local tourism.

Ben Spier, head of policy and regulation at Sykes Holiday Cottages, said: “This research lays bare the untapped potential of the country’s second homes. With many properties sitting empty for most of the year, there’s a real opportunity to turn these underused homes into valuable assets for local communities, using them to support tourism spend and, therefore, local jobs.

“We understand the concerns around housing availability in high-demand areas, and policy changes rightly aim to prioritise local needs over second homeowners.

“However, holiday letting can offer another way of using them to contribute to communities, it’s putting otherwise empty properties to good use to benefit local jobs, services and businesses in local areas that depend on tourism year-round.

“Holiday let owners are undeniably also facing growing pressures and tax rules, but with strong appetite for domestic breaks, the market continues to offer attractive returns.”

The report adds most second homes are kept for personal or family use (52%), used during work travel (9%), or held for future retirement (8%).