Nearly half say they are confident in the future of the market

Nearly nine in ten (88%) brokers have seen an increase in holiday let enquiries in the last 12 months. It comes as investors look to the higher yields of holiday lets compared with standard buy-to-let properties and seek to avoid the regulatory changes impacting the buy-to-let market more generally. Nearly a third (32%) of brokers say they have seen a significant increase in enquiries.

Meanwhile, 44% say they are very confident in the long-term viability of the holiday let market, according to findings from the Cumberland Building Society’s inaugural Holiday Let Index.

Produced in partnership with independent market research agency Pegasus Insight, the index is based on responses from 125 participants, including 25 mortgage brokers, 50 private landlords and 50 homeowners who own at least one holiday let property across the UK.

However, the brokers surveyed also identified investor concerns, including the removal of Furnished Holiday Let tax advantages, council tax rises and second home premiums.

Understanding what brokers want from lenders

The survey also asked brokers what they want from lenders. Income assessment based on short-term rental performance and easier calculating between holiday data and long-term letting came top, both at 16%, followed by more realistic affordability assessments and faster underwriting (both 12%).

Grant Seaton, head of intermediary lending at The Cumberland Building Society, said he believed the future of the market will be shaped by the people within it – rather than a single piece of legislation of an economic event: “brokers helping clients weigh up their options, investors choosing the right opportunities for their circumstances and lenders taking the time to understand each case properly rather than relying on standard assumptions,” he said.