The relatively low value of the pound following the EU referendum vote has made Britain an increasingly attractive destination for foreign travellers, while ‘staycations’ have become a more appealing proposition for Brits wanting affordable holiday breaks nearer to home.

The national tourism agency VisitBritain has estimated there will be a 6% hike in the number of visitors to our shores this year, compared with 2016 – that’s 39.7 million people – and between January and July, there were 23.1 million overseas visitors, an increase of 8% on the same period last year.

Unsurprisingly, landlords and property investors are sitting up and taking notice of this trend, with a large number looking to rent out holiday properties on a short-term basis in places such as the beautiful Yorkshire Dales, picturesque Cornwall and Devon or the stunning Northumberland coast.

•   Together introduces holiday let product
•   The continuing growth of the specialist lending market
•   Together reveals new process for buy-to-let portfolio landlords

Professional landlords – who may have previously operated traditional buy-to-let properties, which have been hit by recent tax and regulatory changes – are now considering holiday lets as an option thanks to attractive rental yields and the ease of booking online through websites such as Airbnb.  

Unlike standard buy-to-lets, holiday lets have to be managed for regular visitors and, therefore, there may be higher costs, such as managing agents’ fees or a weekly cleaner, and income can be seasonal – all factors that investors should consider. However, even taking these costs into account, they may achieve higher yields of about 6% a year, according to one agent specialising in the holiday let market. 

To support landlords seeking to maximise their yields in this way, Together has launched a new holiday let product – available on first and second charge loans – for landlords looking to purchase a property or remortgage, with a maximum LTV of 65%. 

And – sticking with our commonsense philosophy – we will also consider lending to borrowers using non-standard properties as security and to a broad range of customers, including limited companies, sole traders, self-employed, expats or those who may have an adverse credit history. 

For those of us who specialise in the buy-to-let market, it’s clear that the landscape has changed dramatically over the past few years. However, for investors who are willing to put in the extra work required, holiday lets could prove a more attractive opportunity than traditional buy-to-let properties, while allowing them to tap into Britain’s current tourism boom.