Daily Telegraph needs assistance from Holiday Let landlords

Ben Beadle finally gets the truth out there:

Well said
@BeadleBen
govt’s own making. Tax policies actively discourage long-term investment in private rented sector by landlords many landlords have jumped ship to the holiday lets market.
About time someone said this, as the News ain't reporting Why,

https://twitter.com/MickRobertsBoss/status/1542436858323296256?s=20&t=164vH6JJA2T9ybhkb0ixIA

https://propertyinvestorpost.com/government-launches-holiday-let-review/

I was featured on the BBC 2 weeks ago, discussing my reasons for exiting the PRS, and how I had extended and refurbished my house with a view to holiday letting this year. I am now holding fire.

We had a holiday let 20 years ago, and the same objections were being raised then... locals can't afford to buy, homes left empty, no affordable rental properties, no contribution to community...

The PRS has been hit from all sides, to the point where the 'non-professional' landlord is being forced out of the sector. The pandemic exacerbated the problem with many thousands of landlords owed many thousands in rent, over many months. Holiday letting seemed to be an option, but despite the apparent encouragement to 'staycation', that sector is now under attack.

20 years ago we didn't have social media, but now it is so easy for the likes of Shelter and Generation Rent to make their case, regardless of how valid it may be, and all political parties want to be seen to be on the side of hard done by renters and first time buyers.

Those who have invested in holiday lets over the past 2 years, will have bought at the top of the market, based on the likely income from staycations. But, as was always going to happen, we are all desperate to get away to sunny climes again, rather than braving the UK Summer and paying more for a week than the cost of an all-inclusive holiday in Greece.

That means projected incomes are dropping dramatically, and if hit with various restrictions, taxes and charges, will produce a similar problem as with the PRS.

Just another symptom of broken Britain.

We have owned a Holiday Let in Cornwall for 12 years, open for guests 365 days per year. During the time we have run the cottage as a business we have not made a profit! All we have done is employ the local, Cleaners, Laundry, Plumber, Electricians, Fire Safety companies, Letting Agents. The locals do not appreciate that they have great roads, hospitals and other amenities. Without people like us staying stridently to the law and second home owners, Cornwall would be like a third world country.

Reply to the comment left by Lesley Lester at 30/06/2022 - 12:52
If you haven't made money for 12 years, it's unlikely to change with the cost of living crisis. I remember our biggest cost was marketing. The best agencies were expensive, and in reality, we didn't get value for money because once we had established a client base, most of the bookings were repeat. But we felt we needed to have that credibility. Of course, airbnb didn't exist.

I moved to York 2.5 years ago. As well as York's history, shops, pubs, and excellent eateries, it is the ideal tourism hub, with easy access to the Moors, Dales, and coast. Tourism is the biggest employer. Yet, there is constant criticism of holiday lets; airbnb, etc..., which is likely to result in costly restrictions.

Where will the visitors stay if holiday lets disappear or become too expensive? What will happen to businesses and services which rely on the tourism?

Yes, those servicing the holiday let business, as well as those working in other sectors, need somewhere to live, and there are challenges with affordable rented property, as there are everywhere. But if tourism dries up, there really is nothing to take its place.

Reply to the comment left by Lesley Lester at 30/06/2022 - 12:52
Presumably if you were running your holiday let as a business and getting the minimum required 105 days per annum occupation you would have been registered for business rates and not council tax? If so then you would like me have been able to claim at least £20,000 in government Covid grants being part of the hospitality industry. If you haven't claimed these grants then what you have is a hobby and not a business.

Once again we have a draconian government , trying to make new rules for their own failings which is to build more council homes and fund housing trusts to help those that cannot afford homes either rent affordably or to get on the property ladder.

I have done holiday lets for 20 years well before Airbnb and many of the small shops, restaurants , cleaners,tradesmen and other suppliers have been grateful for it.

Undoubtedly holiday lets do bring money into communities that may not have that money otherwise, I am currently investing in a Town , that needs investment, indeed it is desperate for it and the local council are doing nothing, I have done long lets and short lets in this town and there is a shortage of both, I have housed people on benefits and holiday makers and corporates that need accomodation in that town.

I agree there are towns that I hear off that have to many holiday lets, and that some form of licensing is required.

Once again our government attack the PRS sector which I was born into when we had sitting tenants and of course that never worked either.

Banning section 21 is actually a step backwards , maybe they could have simply extended the notice period to say 6 months, the government will regret their latest moves as it will cause less rental property for long term tenants not more as they always hope.

Government gave a 90 day for AIrbnb type rentals, they did this as if they did not how could they collect tax from what they call a black economy, what our government need to do is embrace the fact that we now have worldwide internet and this will create the opportunity to rent in different ways, not everyone wants to rent long term, I help many people moving homes, companies relocating , people moving into a new area and they would rather a short let to see if they like it and many people now work on contract and are no longer living in one place as they used to.

Is it he PRS that is causing the problem or is this more deeper rooted and begins with the governments lack of building new homes, I would safely say that it is the later.

Times have been always changing since we were cavemen, man has always moved on with progress, that progress now is the internet and the governments ability to build new affordable homes if they put their mind to it

I understand that the best communities to live in are ones that have money , so that there is work for all and the only way to create that is allow investment not drive investment away.

The new way of renting should be here to stay and the government should be finding ways of encouraging investment in the PRS sector not driving it away by removing section 21

Yet again another blunder by our government that will need changing later

Richard