Last week the UK was basking in the glorious heatwave and has certainly been good news for many. UK holiday makers are steering clear of overseas travel due to a weak pound and Brexit travel uncertainties. Holiday Buy-to-let investors set to benefit from the current market conditions, as they are exempt from some recent tax and regulatory changes that have discouraged amateur Buy-to-let landlords. Holiday lets can produce healthy levels of income out the drawbacks of being a landlord such as right-to-rent checks and credit referencing.
Believe it or not the most lucrative holiday Buy-to-lets are based in destination cities with buzzing nightlife or historic architecture. The drive behind this is due to the up rise of Airbnb according to Mintel 27% of millennials plan on booking a City break using a website. One of the main challenges for Buy-to-let investors is mainstream lenders struggle to lend on high-rise properties of six or more storeys. Cities such as London and Manchester where space is at a premium is becoming the norm. At Smart Money our Buy-to-let mortgages are not what you find on the high street therefore can help landlords maximise their yields by investing in holiday Buy-to-lets. We can also provide secured loans using a second charge loan on this style of properties even when they are currently mortgaged and do not wish to re-mortgage your existing deal.
Moving onto the political front new Prime Minister Boris Johnson is certainly not taking any prisoners. After a mass exodus of the existing cabinet and new appointments, we certainly live in an era of drastic change. As Boris plays political chess and the threat of a no deal Brexit on the cards certainly is raising a few eyebrows. The appointment of Sajid Javid as Chancellor and Robert Jenrick appointed as the new Secretary of State for Housing is welcome alongside Esther McVey as new Housing minister. The new cabinet reflects the diversity of the UK. The UK now needs clarity and stability which will inject confidence back into the property market. Will there be a Boris Bounce?