What a summer it has been for the UK staycation sector! From holidaymakers to investors, Brits have wholeheartedly embraced the opportunities offered by staycations. So much so, that even the retail sector has jumped onto the trend.
“We’ve seen leading retailers reposition themselves around the boom in staycations – yet more evidence that this sector is here to stay for the long-term. I think many people saw it as a stop-gap until international travel returned to normal, but it’s evolved into so much more than that.”
Dale Anderson, Managing Director, Fabrik Invest
Grocery retailer Morrisons was one company that bought into the staycation mindset this summer, offering ‘staycation’ click and collect services at 440 of its locations. Marks & Spencer jumped on board, too, producing a range of recipes inspired by Greek, Italian and Spanish dishes, for holidaymakers to enjoy Mediterranean flavours without leaving the UK. Nisa, meanwhile, opened 130 stores at holiday parks across the country.
Nor was the staycation boom limited to food retail. My Wardrobe and George both launched staycation collections, designing clothing to suit the needs of those taking domestic breaks.
The fact that retailers have addressed the staycation boom in this way speaks to its longer-term future. Mintel forecast a ten-year high for domestic holiday tourism sales at the start of the summer, with customer spending anticipated to reach £7.9 billion.
The staycation boom has presented an interesting opportunity for property investors, as well. With the stamp duty holiday now a thing of the past, many investors are seeking alternative ways to enjoy tax efficient property purchases.
Holiday lodges are certainly one such option. They have a lower entry point than many property investments and buyers pay zero stamp duty and zero Council Tax. Meanwhile, the fact that holiday lodges are viewed as a business means that they qualify for capital allowances, so can be offset against income in order to reduce tax liabilities.
“Holiday lodge investments come with lifestyle benefits, as well as financial ones. At The Hideaway by Liv Lodges in Leicestershire, for example, buyers are entitled to two weeks’ personal use per year. Two weeks in an idyllic rural setting with a private hot-tub on your terrace is certainly not something many other types of investment offer.”
Dale Anderson, Managing Director, Fabrik Invest
For further details on the merits of investing in the UK’s booming staycation market, contact Fabrik Invest by calling 020 8175 9891, emailing enquiries@staging.fabrikpropertygroup.com or visiting www.fabrikinvest.com.
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