The average price of a holiday home has increased by 12% in the past six months according to mortgage applications to Hodge.

Average purchase prices have risen from £387,993 in October to £435,476 in March 2021. 

The lender says it has also seen a 30% jump in holiday let mortgage applications over the same time.

Previous research from Hodge found that the most popular destination for holiday home buyers was the South West for 39%, followed by Wales for 19% and the North West for 12% of mortgage applicants.

Hodge business development director Emma Graham says: “It is not surprising that the popularity of our holiday let mortgage products continue to grow at pace. 

“The stamp duty holiday has no doubt helped drive more interest in second homes, as has the fact that Brits are not yet permitted to holiday abroad and some might also be afraid to do so.

“When developing our holiday let proposition, we collaborated with our brokers and found their customers wanted more control over their holiday homes so our mortgages allow them to use letting sites such as Airbnb. 

“We also found that owners wanted to enjoy their holiday homes and stay themselves, and so allowing them to stay at the property for up to 90 days per annum has proved very popular.”