Holiday home rental boost

By Jane Slade
Posted: 2010/05/30

Owners of lodges and holiday homes in UK hot spots look set to benefit from bumper returns this summer, reports JANE SLADE

THE BRITISH Airways strike, the Icelandic ash cloud and economic and social unrest in the euro zone have all conspired to boost holiday rentals in the UK and stimulate the luxury lodge and holiday home market, report park owners. "We have been bombarded with demand for rentals, " says Lisa Moir, who, with her husband Simon, owns and co-owns five luxury holiday parks in Devon, Cornwall, East Sussex, Essex and Norfolk.

As a result, their company Dream Lodge Group hopes this will boost sales of their luxury lodges with the promise to owners of nine per cent net rental income for the first year.

A luxury Omar Kingfisher lodge with two bedrooms, two bathrooms and decorated in a modern, high-quality finish may cost £160,000 but, says Moir, it could accrue a rental of up to £24,000 a year at 48-acre Herbage Park in Essex where there are 37 buy-to-let pitches available with a further 49 due in a second phase, attracting annual fees of £2,750 excluding council tax.

"Our parks are open all year round but owners have to have a main residence elsewhere, " adds Moir. "Some owners spend half the year in Spain and rent out their lodge here in the UK, while others have a main house nearby."

Herbage Park has a swimming pool, gym and restaurant and is next to a golf course.

"High-quality lodges with outside decks and hot tubs can attract £895 a week rental, which is a good income for the owner and an affordable holiday for a family of four, " adds Moir.

This trend is echoed by Tony Clish, director of Park Holidays UK, a group of 25 seaside holidays Parks. Clish reports a 15 per cent rise in holiday home sales to new buyers so far this year with prices starting from £9,995 to £190,000, with many sales to couples who let out their units part of the year to create a second income.

"We have some people who buy several units, which they run as a rental business, " he says.

This weekend, family-owned 31-acre Mullacott Park near Ilfracombe, Devon, is marking the sale of its 100th timber lodge with the keys being handed over by Jasmine Harman of popular Channel 4 show A Place In The Sun.

PARK OWNER Bill Wilson says that sales and booking inquiries at his three Devonshire parks have grown this year.

"The cost of an overseas holiday is pretty daunting and with factors such as strikes, unrest and the Icelandic ash cloud people are looking to Britain, which is offering the best holiday options by far. " Wilson is guaranteeing Mullacott Park owners a minimum net return each year of six per cent of their home's purchase price with no site fees, energy bills or other costs.

A couple paying £150,000 for a luxury lodge can look forward to an assured income of £9,000 a year paid quarterly. They would also be able to use the lodge themselves for six weeks off-peak at no additional cost.

Not all holiday parks allow you to let out your home so you need to check that the park is a member of the British Holiday & Home Parks Association.

MORE INFORMATION:
thedreamlodgegroup.co.uk, 0845 123 6333
Parkholidaysuk.com, 0845 815 9775
Mullacottpark.co.uk, 01271 862 212
British Holiday & Home Parks Association: ukparks.com