Applications for holiday let mortgages have soared in the South West and Wales over the past six months, according to new figures from Hodge.
The lender says that 39 per cent of applications have been for properties in the South West, 19 per cent have been in Wales and 12 per cent in the North West.
The share of holiday let applications for properties in Wales is almost double the figure recorded in September 2020 when stood at 10 per cent.
Coastlines around the North, including Pwllheli, Holyhead and Llandudno are proving popular.
The top 10 most popular postcodes for holiday lets are in the following locations, Hodge has revealed:
- Truro
- Plymouth
- Llandudno
- Exeter
- Norwich
- Lancaster
- Torquay
- York
- Swansea
- Gloucester
The average age of a holiday let mortgage customer is 51 and Hodge customers spend on average £403,143 on a holiday home – nearly two thirds higher than the average house price in the UK of £252,000.
Of those purchasing a holiday home, 35 per cent remortgage their existing home to do so, while 65 per cent take out a specialist holiday let mortgage.
Beach resorts in the South West are proving extremely popular because of foreign travel restrictions, with hotspots in Newquay, St Ives, Penzance, Wadebridge, Padstow and Port Isaac.
Welsh locations including Pwllheli, Holyhead and Rhosneigr are attracting interest from holiday makers and second home buyers.
In Devon, Bideford, Ilfracombe and Barnstaple proving popular.
Hodge business development director Emma Graham says: “Many people have not been able to holiday abroad for more than a year now and staycations have therefore become hugely popular.
“We think this has almost certainly led to people re-evaluating their finances, as well as holiday plans and the holiday let market is looking very healthy.
“Given the appetite for a holiday by the sea, it’s no surprise that homes near the beach or coast are the most popular for holiday homes.”
She adds: “Following Brexit and the Covid-19 pandemic, we think staycationing is here to stay and we want to help would-be holiday homeowners make that all-important purchase.
“We are able to offer customers up to three holiday let mortgages too, so if they want to purchase a property in more than one location, we can help.”
