Holiday property investment

It’s not unusual for holiday homes in the UK to be left empty for months at a time during winter. But in leaving them dormant, the owners aren’t just leaving themselves potentially out of pocket, they could be inviting serious damage to the house. Apart from all the minor wear and tear that comes with a house being lived in, having people there's a whole lot better for the house and for you.  

Sometimes when you’re booking a holiday home you’re looking for something a little bit special. A place that will stand out in your holiday photos and remain in your memory. From barns that balance like a seesaw to gypsy caravans and 1970s disco pads, here are four of the best.

The holiday home market is riding high on the back of baby boomers according to a new report. Confidence is higher than it was even before the financial crisis, with 38% of baby boomers considering buying a holiday property and 10% intending to buy abroad.

We’ve all been approached by sales reps trying to sell us timeshare apartments while on holiday. Thousands of Britons have bought into the schemes, which give them access to the holiday home or apartment for a set period – usually a week or two each year – for the rest of their lives.

All aboard the train to Marrakesh. So sung Crosby, Stills and Nash in 1969, before cheap flights entered Morocco and made it a hotspot of holiday villas and second homes. With sales of holiday homes growing by 40 per cent in the second quarter of 2012, Marrakesh is ramping up the development of new holiday homes to cater for the increasing demand.

Fewer Britons went on holiday abroad in 2012 than the previous year, according to official figures. Perhaps buoyed by the Olympics or squeezed by the recession, this means more people are staying in the UK for their holidays. With this in mind, it’s time to take advantage of the UK’s ‘staycation’ trend. Despite the tight economic times, 10m of us still plan to go on holiday in the UK this summer.

The closing of a tax loophole is hurting the Welsh tourist industry and the people who own holiday homes. Previously it was possible to list a second home as a business to avoid paying council tax, just paying the much lower business rates for the property. This was even the case for people who didn’t run the home as a business at all, who just pretended they did, to save money.

For anyone renting out a property short term, there are a few things that make life easier and less stressful. And the way you can make this happen is by going the extra mile for your guests, to make sure their stay is as convenient as possible. So as well as making sure the basics like cleaning are sorted, you can add to their experience by adding a few special touches, all of which will more than pay for itself if it means the guests come back next year.  

Until recently, owning a holiday home and renting it out was a smart investment. Any losses could be offset against the tax on other earnings, and capital gains tax and inheritance tax could be deferred or avoided under the rules that govern business assets. All this made it a win-win for higher-rate tax-payers: if your holiday home was netting you extra income, then great.

Eurozone unrest and Britain’s sterling strength has brought about great opportunities for British investors interested in buying abroad.   With the UK’s market stifling would-be investors, it’s no wonder that many of us are looking for fair investments. So where are people buying?