Oh we do like to invest beside the seaside!
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
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
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