UK vacation rental demand has increased with properties booked months in advance. In this new series, we’ve found the best places to invest in the Staycation boom. First, we looked at the most sought-after spots on a budget under £ 200,000. Here you can invest up to £ 250,000.
With overseas travel plans still in turmoil, Britain is poised for a rush summer as its population flocks to beaches and rural hotspots.
The demand for accommodation in the UK has increased this year and desperate vacationers are willing to pay more for scarce vacation rentals.
According to AirDNA, a data company, the cost of a summer stay is now 30 to 40 percent higher than it was in 2019, and those returns have piqued the interest of property investors. We’ve found the best places to invest in a vacation rental in areas where the demand from vacationers has increased the most over the past year.
Last week we looked at where to buy for up to £ 200,000. This week, using data from real estate agency Savills, we’ve found where up to £ 250,000 can take advantage of the staycation boom.
Plymouth
Britain’s so-called “Ocean City” borders the dramatic Dartmoor National Park and is less than an hour’s drive from the golden sands of the South Devon Area of Outstanding Natural Beauty.
The demand for vacation rentals in Plymouth in June, July and August increased by nearly 43 percent compared to 2019.
Vacationers struggling for a piece of sand and sea are willing to pay more for accommodation in the area. The average daily price for a vacation rental in Plymouth has soared from £ 67 in 2019 to £ 122 this summer, an 82 percent jump, according to AirDNA.
Matt Edwards of Bradley’s Estate Agents in Plymouth said waterfront vacation rentals are the most in demand and ocean view prices are steep.
“Visitors are willing to spend a little more to upgrade from a downtown location to a waterfront property so areas like Plymouth Hoe and Barbican can charge a premium for Airbnb,” he added.
Vacation rentals at Royal William Yard, a Grade II listed former marine food yard, can fetch £ 1,000 a week in the summer, Edwards said.
House prices in the area rose 3.8 percent over the past year to an average of £ 205,016. That means buyers looking to mortgage a vacation home here will need at least £ 51,000 for a security deposit.