The demand for UK holidays has grown in recent years as the number of holiday lets nationwide has increased by 72% since September 2021.
According to analysis by Moneyfacts.co.uk, there are now more than 320 deals available to holiday let, a figure which has doubled since the advent of the pandemic in March 2020.
Rachel Springall, finance expert at Moneyfacts, said: “The demand for holiday let properties has been evident both from a landlord perspective and holiday makers, so it’s positive to see more lenders entering this niche arena and accommodating borrowers with more product choice.
“Growing choice is good news for borrowers comparing deals with the most competitive package, and with interest rates rising, it has never been more important to compare the overall cost of a deal carefully and lock into a competitive rate for peace of mind.”
This news comes as buy-to-let landlords found more lenders have tapped into the market in order to cater to demand.
There are now 31 different brands, 6 more than in September 2021 and 11 more than in March 2020, the majority of which are currently building societies.
However, demand for holiday let properties could change amid Government rules to be introduced in 2023.
Springall cautioned: “There are notable Government measures coming into play next year that are likely to impact the holiday let market as homeowners will need to show evidence of their lettings and meet certain criteria to qualify for business rates relief.
“Holiday lets will need to be rented for a minimum of 70 days a year and available to be rented out for 140 days a year under new rules which are to come into force from April 2023.”
