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The Future Looks Bright for Property Investment in Cornwall

 

This year a number of startling surveys have been published, suggesting new opportunities for savvy investors willing to wade into the world of buy-to-let. However, they will have to take into consideration the additional surcharge on stamp duty announced by the Chancellor in his Autumn Statement.  For one, a surprising 72% of Brits this year expected to holiday within the UK rather than travelling overseas. Asked what they considered to be the “perfect” holiday destination the most popular answer was a Cornish cottage close to the seaside.

Tourism in Cornwall, it would seem, is enjoying something of a revival with the National Trust reporting record-breaking visitor numbers to its Cornish properties this year. Over five million visitors to their stately homes are expected in 2015.

Furthermore, as reported in May of this year, an estimated £92 million was expected to be spent in half term week alone by visitors to this glorious part of the country.

But it’s not just Brits that appreciate the appeal of Cornwall’s 697km of glorious coastline. The most recent statistics from Visit Cornwall suggest that in 2014 alone the area received 32 million visitors. Of those, 69% of tourists have visited the area before and happily return time and again. Indeed, just over half of Brits visiting Cornwall last year had already visited within the last 12 months.

The data also shows that Brits are most likely to stay in a self-catering cottage, rather than any other form of accommodation.

It therefore shouldn’t come as a surprise that a number of rental companies have claimed that enquiries for British self-catering cottages are up between 30 and 50% this year. Thanks to the laws of supply and demand, holiday properties in such a popular tourist destination can attract some serious premiums.

While the average residential property in Cornwall goes for just £717 per calendar month, the evidence suggests that holiday cottages can earn considerably more, especially in peak season. According to rental website HoldayCottage.com, properties in Cornwall rented out to tourists have earned an average yield of 8.6%; well above the national average for property investments.

It should be little surprise therefore that more and more investors are discovering the financial benefits of buying in Cornwall. Recent statistics suggest that buy-to-let mortgage applications are up 22% compared to a year ago.

Top visitor attractions in Cornwall are:

  • Eden Project
  • St. Michaels Mount
  • Lost Gardens of Heligan
  • Lanhydrock House & Garden
  • Tate St Ives

Savvy investors may do well to consider quaint cottages close to one or more of these choice destinations if they are looking for the best return on their capital.

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

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