Cornwall’s long, sandy beaches, quaint harbours and “chocolate-box” cottages have always been attractive to tourists and holiday homebuyers alike. With its increased tourism figures, Cornwall is reeling in more investors than ever for its holiday rental opportunities. We explore some of the reasons for this increased interest in the “Costas” of Cornwall.
UK staycations are on the up
Research from the budget hotel group, Travelodge, indicates that around 65 per cent of Brits spent their summer holidays in the UK in 2013 – a significant increase on the two previous years, when 41 per cent and 35 per cent of those surveyed took a domestic break. With 22 per cent of today’s UK holidaymakers planning to go to the seaside, it is safe to predict that the British move towards the staycation is on track to continue for years to come.
Cornish cottage holidays are increasingly popular for international travellers as well as domestic holidaymakers. In fact, a well-known price-comparison website reports a 50 per cent increase in enquiries for UK self-catering holidays, indicating a great opportunity for many holiday homebuyers wishing to cash in on holiday lets.
Demand for larger houses has increased over the past year. Miles Kevin, of Knight Frank, comments: “More families choose ‘generational’ holidays, with grandparents, children and grandchildren staying in the same holiday property. There is definitely a rising trend for larger properties as families look to holiday as an extended family or with friends.”
Although still not the easiest place to drive to, Cornwall has become an increasingly accessible destination for a relaxed break, thanks to an ever-improving transport infrastructure, including the A30 motorway to Exeter and Newquay Airport. In addition, First Great Western trains take you to St Austell from Paddington Station, London, in just over a few hours.
Better than the bank
With many banks failing to offer satisfactory returns, investors are looking elsewhere to place their money. To many, buying income-generating Cornwall holiday homes in popular locations is regarded as a far better long-term investment. And now is the time to do so, says Reg Parry of County Homesearch. “A rare window has opened, where property prices and mortgage interest rates have fallen, and demand for UK holiday rentals has rocketed due to favourable exchange rates,” he says.
The UK: a safe place to buy
Miles Kevin, head of residential development for the South West at Knight Frank, said: “Demand in the market was depressed during the recession and its aftermath, but we found that activity was supported to some extent by families buying second homes, not just as a luxury, but as a safe haven for their money.
“In terms of pricing, the best-known places such as Padstow, St Ives, Rock, Dartmouth and Salcombe have proved very resilient. These prime areas in the South West can command an uplift in prices of up to 25 per cent.”
Another attraction for investors is the safety of the UK for property investment, particularly in the aftermath of land grabs and illegal builds which recently stung many British buyers on the Spanish Costas. Buyers are keen to find a safe place in which to put their money where they don’t have to deal with foreign laws, taxes and contracts in another language.
Staycation short breaks in the UK are becoming extremely popular, especially during off-peak seasons. So holiday let owners can now cash in on extra, year-round rental returns.
A recent survey from Visitcornwall.com revealed that Cornwall outperforms similar UK destinations when it comes to holiday satisfaction statements, the most notable being: “Makes me feel like I’ve had a proper holiday” and “Makes me want to return again and again”, which outperform competitor destinations by 25 per cent and 18 per cent respectively.
Renowned for its surfing, Cornwall is also popular for diving, kayaking, angling, horse riding, rambling and cycling, so there are plenty of activities for the young. If it’s relaxation you are after, Cornwall offers countless picturesque, seafront villages and fishing harbours, as well as drives along winding country roads to breathtaking beaches and towering cliffs you cannot fail to marvel at. There’s also an endless supply of traditional pubs with hearty meals and local ales to enjoy. And for those who love to ramble, Cornwall boasts coastal and country walks for all ages, including the famous South West Coast Path, which covers an impressive 630 miles.
Looking for Holiday Home Insurance?
If you own, or are soon to own, a holiday home in Cornwall, don’t forget to get proper Buildings and Contents Insurance. Staysure’s Holiday Home Insurance protects you in the event of catastrophes such as storms, fires, theft, water damage and much more.
We will be pleased to supply you with Buildings Insurance, Contents Insurance or even combined Buildings and Contents Insurance for your holiday home. Call our Holiday Home Insurance specialists on 0800 033 4902 who will be glad to help and explain our policies.
All Holiday Home Insurance provided by Staysure is subject to agreement from our underwriter. Terms and Conditions apply, details of which can be found within the Policy Document.