Second home ownership – new stats show holiday lets contribute 6x to local economy

NEW STATISTICS SHOW FULL TIME HOLIDAY LETS CAN CONTRIBUTE OVER SIX TIMES MORE TO LOCAL ECONOMIES THAN HOLIDAY HOMES

Data collated by a leading UK holiday let company reveals that holiday lets can contribute significantly more to local economies than second homes and owner-occupiers. 

Head of Operations for Finest Retreats Julia Chapman says “For an average three bedroom property, a professionally run full-time holiday let contributes over 6 times more to the local community than a holiday home; and over 3 times more than an owner occupier or long term rental.*

“It is essential to distinguish between two types of second homeowners: those that contribute to the local economy by renting out their property to visitors who spend money and generate revenue for local businesses, and those who own holiday homes for personal use with infrequent occupancy.

“Holiday lets which are professionally operated generate year-round guests who eat in the local restaurants, drink in the local pub and shop in the local shops several times per week. Often more than those who live in these locations permanently. The regular maintenance and upkeep of the properties generates business for local tradesmen and women. This all adds up to considerable positives for the local economy often in places where no other jobs are available. “

A data comparison prepared by the company looks at the value of three different categories – owner occupier/long-term rental, holiday home and full time holiday let. Figures come from sources including ONS Family spending in the UK: April 2019 to March 2020, Visit Britain Annual Report 2019 and Finest Retreats’ own proprietary data. 

Chapman says “The much-vaunted argument about the negative impact of holiday lets really doesn’t give the true picture when you look at these figures. For example, our employees are full-time employed on good salaries in these locations so, when added to the other financial benefits of bringing regular visitors into rural or coastal towns and villages, this makes stark contrast to second homes which provide limited consideration to the local economy.

“To be delivering six times as much income to the local economy as a holiday home, and three times as much as a owner occupied or long term rental, shows just how valuable holiday lets can be and why any action which may have a detrimental knock-on effect on local businesses should be examined carefully from all sides and not just seen as a problem that needs attention.”

Julia suggests that the economic contribution from full time holiday lets be given greater consideration especially when councils look for new ways to penalise those fortunate enough to own a second home with extra council tax or imposition of other financial penalties. 

“The economic contribution of full-time holiday lets must not be submerged beneath more nuanced discussions about a lack of affordable local housing, instead councils should focus on jobs and employment to ensure all areas of the UK have equal opportunities to develop as vibrant, attractive and economically productive communities for all,” added Chapman.