Destinations such as Manchester, Birmingham and London have always been traditional property investment hotspots in the UK, but with Brexit looming and new tax laws pushing landlords away from the buy-to-let sector, many investors are looking for the next up and coming investment destination. The team at Spot Blue International Property look at the reasons why Cornwall may very well be that destination.
Cornwall is the UK’s most popular staycation destination with 31% of British ‘staycationers’ having planned to visit this year. Furthermore, the emerging market for holiday homes and improved transport links are helping to establish Cornwall as the UK’s number one staycation destination.
New and improved flight routes into Newquay Cornwall airport are making it easier than ever for tourists to visit and stay in Cornwall without worrying about planning long and tiring road trips across the country. With new flight routes from London Southend, Jersey and Guernsey airports as well as existing routes from Gatwick and Manchester Airport, tourists from all over the UK can visit Cornwall with ease. In addition, new flight routes are planned for 2020 making Cornwall easily accessible from Glasgow, Aberdeen, Norwich and Newcastle.
Why buy property in Cornwall
Cornwall hasn’t just caught the eye of tourists; investors are starting to understand the potential that Cornwall has, especially in the holiday home rental market, but what is it about Cornwall that makes it so popular with domestic holidaymakers?
Cornwall’s warm summers, stunning coastline and plethora of attractions are just a few of the things that help make Cornwall the UK’s best staycation destination and once you have experienced Cornwall for yourself, it is likely you will return time and time again. This has meant increasing demand for holiday homes in Cornwall as more and more tourists descend upon the county for their holidays and this demand isn’t likely to go away anytime soon as tourism is Cornwall’s main industry. This can make the purchase of a holiday home to let a typically sound investment with the potential for long term capital growth and generous rental yields.
In addition, Cornish homes are not particularly expensive, especially when compared to urban environments or holiday destinations in the South East. While house prices can fluctuate, it is likely that any property investment will be a long term commitment and letting your property out for most of the year or at least during the peak holiday months can cover the cost of ownership and generate a good return.
Furnished Holiday Lets (FHLs) – Why invest in this sector
If you are looking to invest in buy-to-let holiday homes, it is likely that you are looking for a furnished holiday let (FHL). An FHL is a fully furnished property ready to be used as a holiday home by tourists or to be lived in as and when the owner wishes.
FHL’s are ran as businesses and, as such, come with a number of benefits because of this. FHL’s come with capital allowances which can be applied to furnishing the property should it need updating or re-decorating. Furthermore, most of the expenses associated with running the property are tax deductible. What’s more is that any profit made can be used for pension contributions and most FHL’s will qualify for relief on business rates and are exempt from council tax. These benefits are likely going to reduce the cost of running an FHL and will lead to an overall greater return for an investor.
In order to qualify as an FHL, a property must meet certain conditions that govern furnishing and, more importantly, the minimum number of days it is made available to let and the minimum number of days it is occupied by paying guests throughout the year.