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.