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Sep 26

The Holiday Home Industry and Brexit

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Greenway – Agatha Christie’s holiday home

Whether you are new to the market or a holiday letting expert, you should be aware of the changes in the political arena that have resulted in a decline in the purchase of family homes abroad.

Staycation is the new vacation as booking a lodge in the lakes or renting a flat it Manchester replaces the annual trip abroad. But combined with increasing competition from owners renting, in order to offset mortgage and maintenance cost, getting those bookings has never been so important in the holiday home industry.

Commercial gas retailers Flogas, give us an insight into the holiday home market and what holiday home owners can do to maximise their profits.

How Brexit has affected the holiday home market.

With the current Brexit vote and negotiations are well underway with the European Union, attitudes towards holidays and purchasing homes abroad are changing.

Homeowners and Brexit

With this country being always welcoming and accommodating to Brits, Spain always appears to be a first choice when UK residents decide that they want to purchase a holiday home. In 2016, UK buyers made up 19% of home purchases in Spain by non-Spaniards – it’s quite an impressive figure considering how many nationalities choose to go there for their holiday. However, this figure has almost halved since 2008 when it stood at 38%, which begs the question why?

With economic and political uncertainty in mind, Brits are becoming more reluctant to take the plunge and relocate abroad. It’s found that recently, the decline of pounds has meant that people cannot afford to buy the holiday home that they’ve had their eyes on.

Holidaymakers and Brexit

The decrease of the pound has also influenced the attitudes of holiday makers. More people of Britain are opting to take a holiday within the country to save money. Although research showed that they are spending less money on their staycations that what they’re use to, so the income is coming in elsewhere. Foreign tourists are coming over to take advantage of the lower rate of the pound and boosting the UK economy in that way.

Because the implications of Brexit haven’t been fully covered yet, holidaymakers are feeling unsure in other areas too. As of now, Brits are free to travel throughout Europe without restrictions and with access to healthcare. However, this could all change and it will further affect our holiday habits.

How can you get more visitors to your holiday home?

If you already own a holiday home abroad, you may be witnessing visitor levels slowing. What can you do to encourage visitors to come and stay in your home?

Online Visibility

If you don’t have a website or blog, you could be losing out on many customers from around the globe that didn’t know about your site. Even a basic website that includes photos, customer reviews and contact information could boost your online presence and revenues.

Consider social media, as it’s  quite a successful way to show off your holiday home and increase interest, you can offer promotions such as competitions to get people ‘sharing’ and engaging with the company.

Creating memories

The atmosphere when a customer enters your holiday home is an important element because it’s something that stays with them and this is often mentioned in online reviews. To improve this; greet guests at the accommodation if you live nearby to provide them with keys and show them around the area, offer complimentary wine and provide a map of the local area and any tips for their trip.

Maintenance cost management

You may be weighing up your options for purchasing a holiday letting property or maybe, you are looking to remain profitable. Either way, it is important to consider the costs involved with maintaining a holiday home. Of course, utility bills and mortgage payments are often considered top of the list however, there are some that are often forgotten about: cleaning fees can be between £40 – £80 per booking, a welcome kit costs £10 – £15 an agency may charge you 20-25% of your monthly income and there are gardening and window cleaning costs on top of these too.

It seems that if you are aspiring to own a holiday home, you should invest in a home in the UK – where tourism is on the rise from both foreign tourists and UK residents. For holiday home owners abroad, ensure you are maintaining your online presence and managing your costs as effectively as possible. Hopefully the effects of Brexit will become clearer soon enough and the holiday home industry will know where they stand.

Sources

http://www.lowlandlettings.co.uk/what-are-the-weekly-running-costs-of-a-holiday-let/

http://www.telegraph.co.uk/business/2017/08/27/staycations-foreign-visitors-provide-brexit-boost/