Sales of holiday homes near the coast have surged over the past six months, with holiday let mortgages for properties in Wales almost doubling since September 2020.
Figures from Hodge Bank has revealed the most popular destination for holiday let buyers is the South West at 39%, followed by Wales at 19% and the North West at 12%.
Welsh purchases have almost doubled since September 2020, increasing from 10% to 19%, with coastlines around the North, including Pwllheli, Holyhead and Llandudno proving hugely popular for holiday homes.
The data also shows that the average age of a holiday let mortgage customer is 51.
Hodge customers are willing to spend on average £403,143 on a holiday home – nearly two thirds higher than the average house price in the UK of £252,000.
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Of those purchasing a holiday home, 35% remortgage their existing home to finance their holiday home while 65% take out a new holiday let specific mortgage.
With travel hugely restricted and people re-evaluating their holiday plans during the COVID-19 pandemic, the data shows that customers clearly want to head to the coast, with beach resorts in the South West proving hugely popular.
Newquay, St Ives and Penzance in Cornwall are real hotspots as are Wadebridge, Padstow and Port Isaac.
Over the past six months, Wales has also soared in popularity, especially around the North West in Pwllheli, Holyhead and Rhosneigr.
Devon also holds a lot of appeal, with the likes of Bideford, Ilfracombe and Barnstaple proving popular.
The least popular regions with only 1% of purchases are Greater London and the East Midlands, with West Midlands and the South East at 2% for those buying holiday lets.
Emma Graham, business development director at Hodge, said: “Many people have not been able to holiday abroad for more than a year now and staycations have therefore become hugely popular.
“We think this has almost certainly led to people re-evaluating their finances, as well as holiday plans and the holiday let market is looking very healthy.
“Given the appetite for a holiday by the sea, it’s no surprise that homes near the beach or coast are the most popular for holiday homes.
“In 2019, Hodge launched a mortgage designed for those wanting to own a holiday let property in the UK after seeing an increase in enquiries.
“We saw a gap in the holiday let mortgage market for a customer-friendly product that allows owners to stay at the property for a longer period, as well as the ability to use letting sites.
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“Customers can borrow up to £1m and there is a maximum lending age of 95.
“In addition, we have the unique Hodge Early Repayment Promise, which means if the customer sells their home and moves out, and pays off their mortgage completely, we’ll waive the Early Repayment Charges – giving them one less thing to worry about.
“Following Brexit and the COVID-19 pandemic, we think staycationing is here to stay and we want to help would-be holiday homeowners make that all-important purchase.
“We are able to offer customers up to three holiday let mortgages too, so if they want to purchase a property in more than one location, we can help.”
By Jessica Nangle
Source: Mortgage Introducer
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