For those looking to invest in buy-to-holiday-let, look no further than Tenby in Pembrokeshire.
Four of the UK’s biggest holiday cottage companies have revealed that Tenby is one of this year’s most sought after holiday destinations.
The UK Top 50 Search Report, which features search statistics as compiled by cottages.com, Welcome Cottages, English Country Cottages and Welsh Country Cottages, revealed the seaside town to be the fifth most searched for destination in the UK for 2016 breaks.
As a result, cottages.com has reported bookings to the popular resort are up by more than a quarter (27 per cent) this year compared to 2015 across the brands.
The top five most searched for holiday destinations are:
- St. Ives
- Whitby
- Weymouth
- Newquay
- Tenby
Sales for holiday cottages in Tenby have soared this year, leading cottages.com to grow its property portfolio by more than half (53 per cent) to meet the high demand. Despite partnering with more local property owners than ever before, the popular spot still had a sell-out summer, reaching 97 per cent occupancy during the months of June, July and August.
Overflow demand has seen the resort expand its peak period into September, with bookings up nearly two thirds (64 per cent) this month already against the previous year. Key properties driving the demand are those accommodating larger parties of six to eight people, and those with a luxury four and five star rating.
Investing in buy-to-holiday-lets remains tax efficient and has not been subject to the same curbs as the buy-to-let market. Purchasers of buy-to-holiday-let properties are still able to set their full mortgage interest repayments against tax and can to claim full capital allowances – something that ordinary buy-to-let owners are not able to do.
This means that if you renovate a property for holiday use or buy new furniture, you can deduct the full cost from your rental income.
There is another benefit. Furnished holiday lettings are classified as business assets for capital gains tax purposes, which means the tax is levied at only 10 per cent. George Osborne cut CGT in the Budget, but ordinary buy-to-let investors, who fall into the 40 per cent rate for income tax, will still have to pay 20 per cent CGT when they sell their properties.
Properties let for more than 70 days a year are also eligible to apply for small business rate relief of 50% and thereby avoid the punitive extra Council tax some councils are trying to inflict on holiday home owners.
If you are interested in investing in a buy-to-holiday-let property in Pembrokeshire, Carmarthenshire, Ceredigion or Gower, give Carol Peett at West Wales Property Finders a call on 01834 862816. With over 15 year’s experience in the West Wales property market, Carol has sourced numerous successful holiday let properties for clients including several in Tenby this year. Over 90% of the properties West Wales Property Finders introduce to their clients never hit the open market; ensuring they get the pick of the crop. http://www.westwalespropertyfinders.co.uk
