To Let or Not To Let That Is The Question

Second homeowners who have taken advantage of the buy to let investment market during 2009 are set to experience another prosperous year according to holidaylettings.co.uk.

During a recent assessment of their website they found that their UK inventory had doubled year on year compared to 2008, and one of the main reasons they feel this has occurred is because of the number of homeowners who are seeking to make their second homes pay for themselves.

Instead of letting them sit empty for the majority of the year, more and more homeowners are now choosing to rent out their holiday homes to help supplement their income.

And it is proving to be a worthy investment.

Not only is it great value for money –  providing more space, flexibility and no interference from a middle man – but holiday home letting is a much more comfortable experience for homeowners looking for an affordable holiday.

Even despite the economic pressures of the recession, holiday queries are up 40% year on year globally, whilst in the UK they have risen by 73%.

And it is proving to be a global experience:

• South Africa – enquires have increased 13 times
• Turkey – this location has truly benefited from the euro/sterling exchange rate making it an affordable place to stay
• Croatia – advanced enquiries for 2010 are up 113%
• Malta – advanced enquiries for 2010 are up 94%
• Greece – advanced enquiries for 2010 are up 74%

Looking at all these statistics, 2010 is definitely proving to be the ‘Year of the Property Investor'; but only time will tell if these figures will remain strong, once confidence returns to the property market.

PLEASE NOTE: if you are interested in letting out your second home you need to be aware of the new Furnished Holiday Lettings rules which will be implemented in the new tax year 2010/11.
More than a million people aged over 50 are believed to be relying on increasing property values to help fund their retirement. Yet since the onset of the recession during autumn 2007 an estimated £27,250 is believed to have been wiped off the price of UK property values.

Even following the last 7 months which has witnessed property price increases of £15,000, this overall property loss has still severely dented pre-retirees plans to use equity release to boost their retirement.


According to popular insurance company Liverpool Victoria, more than 12% of over 50s believed so much in the capital growth of their properties that they have chosen to save less independently.

And as a consequence, many now face a reduced standard of living when they hit retirement..

Yet despite these property price falls, confidence still remains in the long term value of their properties.

Through the use of equity release - where money is taken from the value of their properties – many over 50’s plan to fund their retirement by taking money out of their properties.

However, consumer group Which? feels this could be a big mistake and should only be used as a last resort.

Expensive, inflexible, and more often than not designed to leave people with little equity to play with; property experts recommend downsizing to a smaller, cheaper property instead. Not only is downsizing easier but pre-retirees can instantly benefit from these profits.

Original Article

More About the Author

Fraser Stirling, Property Mentor Delegate

No matter what the media wants you to believe, property is still the only investment route where you can benefit from an asset that will NEVER go into zero value. Even when I was university I admired properties ability to withstand the economic elements and stay strong, even when other investment forms faltered or failed. X years on, I am now the proud owner of multiple property investments - one of which earns a passive income of £4,680 and my property portfolio is still expanding. Read more