The UK is on track to experience a staycation boom in 2023, with more and more people deciding to take their vacations within the UK.
The increased popularity of staycation holidays has seen a sharp rise in demand for short-term let properties, including lodges, apartments, and houses, as more Brits seek alternative ways to spend their time off.
In this feature, Fabrik Invest looks at why staycations are becoming increasingly popular and what it means for property investors considering short-term lets or holiday lodge investments.
The UK is on track for a staycation boom in 2023
A recent report from GoCompare has indicated that the UK is on track for a significant increase in staycations in 2023. This is due to various factors, including customer confidence issues and decreased disposable income.
The demand for holiday lets has grown exponentially over the last few years, especially since the pandemic began, and is expected to continue to grow significantly in the next couple of years.
According to the GoCompare survey, the number of people still determining what type of holiday they will take (or choose a different break, such as a staycation) in 2023 has increased from 12% to 41%.
This impressive increase comes off the back of a rapid rise in demand for staycations and short-breaks following the pandemic, where more Brits opted to stay in the UK rather than travel abroad.
For property investors, this trend has made it increasingly appealing to diversify their portfolios and invest in holiday homes to cater to the rising demand for this type of accommodation.
The reasons behind the boom
Budget holidays are becoming increasingly popular in the UK as more people look to explore their country’s unique sights and attractions on a budget. With staycations becoming an increasingly attractive option, many families and couples alike are turning to the UK for their next holiday destination.
As well as being able to travel without breaking the bank, people are also looking to explore the great outdoors on their holidays. From camping in the countryside to beach holidays and mountain hikes, the UK is home to some of the most picturesque outdoor locations in the world.
Romantic getaways are also popular for couples looking for a break away from everyday life. From relaxing spa retreats to cosy lodges in the countryside, there are plenty of romantic hideaways for couples looking for a bit of time alone together.
As a nation of animal lovers, it’s now possible to bring them along, too, with more and more accommodation providers offering pet-friendly stays.
For investors, this wide pool of potential tenants makes holiday and short-term lets an excellent option for investment, allowing them to capitalise on the demand for short-term rentals.
International visitors return
However, it’s not just Brits who need somewhere to stay. According to VisitBritain, 35.1 million international visitors are forecast to visit in 2023, with a spend of £29.5 billion – 86% of the 2019 level and 18% higher than in 2022.
As international visitors return following a slowdown during the pandemic, European markets will lead the recovery, with 24.1 million visits forecast in 2023. This figure marks 88% of the 27.3 million visits recorded in 2019. VisitBritain also expects 11.0 million international visits to the UK in 2023, 81% of the 13.6 million in 2019.
The return of international visitors is crucial to the success of the UK’s tourism sector, helping to bolster the country’s economy and providing employment for thousands of people. It is expected that 2023 will see an increase in international visits compared to last year as travel restrictions are lifted, and confidence in safe travel builds.
Investors should be aware of the potential for a staycation boom in 2023 and the opportunities it presents for diversifying their portfolios.
Ideal for portfolio diversification
A survey of 2,000 UK adults found that 24% of Brits are considering becoming holiday let owners, and 51% of 18 to 34-year-olds. The biggest motivator appears to be potential profits, with nearly half (48%) saying they would consider short-term holiday letting as a way of earning extra money. This is even more important to those aged 55 and over, with two in three (65%) driven by an additional source of income.
Marc Goldberg, Together commercial chief executive, commented on the rising demand for holiday lets: “Staycations have been in extreme demand – with bookings reaching all-time highs this year – and their popularity looks like it’s here for the foreseeable future.”
Contact Fabrik Invest to join the waitlist
Investors looking to take advantage of short-term lets or fully managed holiday lodge investments should contact Fabrik Invest, where they can join the waitlist and be one of the first people to access the best investment opportunities. We will help you identify fully managed properties with high rental yields and capital growth potential, enabling you to get the most out of your investment.
