What's Happening

Our expert knowledge is frequently called upon by the media. Click below to see the latest press coverage from home and overseas.

Home  »  What's happening  »  In The Press

Oh we do like to invest beside the seaside!

July 28, 2017Article by Kirsty Rose

Returns of 10% are attracting investors to UK seaside hotels instead of traditional buy-to-let, according to Property Frontiers research.

The UK enjoyed record visitor numbers in 2016, with Visit Britain reporting 37.6 million visitors over the course of the year, up 4.14% on 2015.

Travel marketing company Sojern has reported a 23.8% rise in the number of Brits planning a UK summer break for 2017, with Brexit believed to be a key influencing factor in many families’ decision to opt for a UK break.

As a result, hotel investment in the UK is projected to grow by 28% in 2017.

They outshine buy-to-let in several ways – there’s no stamp duty, no buy-to-let tax issues and a comparatively low entry point

While the pound has recovered somewhat since the EU referendum, it is still some 16% lower against the dollar and 14% lower against the euro than it was before the vote. Many investors are taking advantage of this fact to increase their stock of UK hotel rooms, with returns of around 10% tempting many to opt for these instead of for buy-to-let opportunities.

Savills reports that investment in UK hotels has already reached £2 billion in the first half of 2017. If the firm’s projections play out, investment for the year will hit £5.1 billion, an increase of 28% over 2016.

The current popularity of UK seaside hotels is reminiscent of the Victorian era – the UK’s seaside towns are enjoying a significant revival.

Scarborough in North Yorkshire is an excellent example. According to Visit Britain figures, the county as a whole enjoyed a 4.56% rise in tourism in 2016, with a 15.52% rise in total visitor expenditure. Scarborough’s majestic Harland Hotel is one of those properties reaping the benefits.

“UK hotel rooms are hot property right now when it comes to investments that offer impressive returns. They outshine buy-to-let in several ways – there’s no stamp duty, no buy-to-let tax issues and a comparatively low entry point. For investors from overseas, there’s also the ongoing favourable exchange rate, with the pound not yet fully recovering from the UK’s decision to leave the EU.”

Ray Withers, CEO of Property Frontiers

>> Article originally posted by Property Reporter

 

Property Frontiers Awards

The award winning international investment specialists & founder member of the Association of International Property Professionals

Follow us...

  • Befriend Property Frontiers on Facebook
  • Follow Property Frontiers on Twitter
  • Follow Property Frontiers on LinkedIn
  • Watch property investment videos on the Property Frontiers YouTube channel
  • Property investment news from Property Frontiers
  • Read property investment commentary on the Property Frontiers blog