Sales of holiday homes near the coast have surged over the past six months with holiday let mortgages for properties in Wales almost doubling since September 2020.
Figures from Hodge Bank have revealed the most popular destination for holiday let buyers is the South West at 39%, followed by Wales (19%) and the North West (12%).
Welsh purchases have almost doubled since September 2020, increasing from 10% to 19%, with the coastlines around the North, including Pwllheli, Holyhead and Llandudno proving hugely popular for holiday homes.
The data also shows that customers are willing to spend on average £403,143 on a holiday home – nearly two thirds higher than the average house price in the UK of £252,000.
Of those purchasing a holiday home, 35% re-mortgage their existing home to finance their holiday home, while 65% take out a new holiday let specific mortgage.
With travel hugely restricted and people re-evaluating their holiday plans during the Covid-19 pandemic, the data shows that customers want to head to the coast, with beach resorts in the South West proving hugely popular.
Emma Graham, business development director at Hodge, explains: “Many people have not been able to holiday abroad for more than a year now and staycations have therefore become hugely popular. We think this has almost certainly led to people re-evaluating their finances, as well as holiday plans and the holiday let market is looking very healthy.”
“Given the appetite for a holiday by the sea, it’s no surprise that homes near the beach or coast are the most popular for holiday homes.”
In 2019, Hodge launched a mortgage designed for those wanting to own a holiday let property in the UK after seeing an increase in enquiries. It then announced the extension of its Early Repayment Promise (ERP) feature across all of its residential mortgage products last year.
Graham concludes: “Following Brexit and the Covid-19 pandemic, we think staycationing is here to stay and we want to help would-be holiday homeowners make that all-important purchase.”