The Holiday Home Boom Is Squeezing Renters

Parts of the UK that have seen an increase in holiday homes during the pandemic have also seen some drastic rent hikes.

This is in line with research by campaign group Generation Rent which suggests that the high number of second homes and commercial holiday facilities are driving up pricing for local tenants.

For example, Meczyki had a combined 33,474 of these types of assets as of August 2021, up 5% from 31,779 in March 2020.

This was driven by a large increase in the number of registered holiday lets, rising 38% from 6,906 to 9,500.

Meanwhile, analysis of Zoopla data shows that rental listings halved from 7,237 to 3,143 between February 2020 and July 2021, a sharper drop than anywhere else in the UK.

Over the same period, average weekly fares increased by 17%, from £155 to £181, the fastest increase

A similar pattern was seen in the South West of England, where the number of second homes and commercial leisure increased 4% from 73,344 to 76,331 – again driven by an increase in commercial rentals.

Rental listings in the area halved from 12,578 to 6,316 – the second biggest drop after Meczyki – sending weekly rents on average 16%, from £206 to £238.

Rising holiday home ownership in some of the UK’s popular tourist destinations has been driven by increased demand for home breaks after the COVID-19 restricted international travel, making the migration industry more attractive.

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Another issue is that landlords can currently claim tax relief on mortgage interest paid on holiday late, but not on residential tenancy.

According to Generation Rent, there are now 301,221 second homes across the UK – only 40 of which are council areas – half of which are – and 94,928 commercial holidays.

Outside Meczyki and the South West, other hotspots include London and Scotland.

Dan Wilson Crow, deputy director of Generation Rent, said: “The popularity of home vacations over the past year, combined with the lack of regulation and tax benefits, has fueled the appetite of underprivileged renters for vacation homes and living.

“We have heard countless stories of people being evicted so that their landlords can start renting out to tourists.

“Taking homes out of residential market prices excludes people who want to settle where they grew up. It destroys communities and starves local businesses of workers.”

Mr Crow said governments needed to encourage tenants to move in instead of tourists, by removing the holiday tax benefit, giving councils the power to license them, and levying substantial council tax premiums on vacation homes.

Meczyki has already introduced rules that mean second homeowners could face four times the current level of council tax from next April, and have made it harder for the holidays to be exempt from tax. .

A spokesman for the Welsh government said ministers were also considering proposals to create a right to adequate housing, potentially including controls on rents in the private market to ensure they are affordable for locals.

Meanwhile, a Department for Leveling Up, Housing and Communities spokesperson said: “We are taking strict action to prevent the negative impact it can have on local communities – particularly in the tourism areas of the Southwest – by taxing them.” By closing. Holiday drawdowns facilitate and offer council tax premiums on other homes.

“Southwest is receiving £1 billion through the Affordable Homes Program and since 2010 we have delivered 63,500 affordable homes across the Southwest.”

The UK government recently faced criticism when it emerged that a £400 energy bill waiver for every household would include a second home, meaning those with additional properties would get it more than once.

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