PROPERTIES IN WELSH HOLIDAY LETTINGS HOTSPOTS SEE HIGHEST PRICE INCREASES IN 2018
FINAL – LONDON – EMBARGOED 00:01 3RD JULY 2018 – Second Estates, the UK’s first holiday property fund, analysed price data from HM Land Registry to find that holiday lettings hotspots in Wales have seen the highest price increases in the UK over the past twelve months. A popular holiday letting area, the Forest of Dean has seen prices increase by 7% over the past year up to £351,315, on average, whilst homes in the Brecon Beacons increased in value by 6% to £233,965.
Popular holiday destinations close to London have also seen strong increases over the past twelve months. Locations within a two-hour drive of London such as the Kent Downs and Isle of Sheppey have seen price increases of 4% and average properties now selling for £343,481 and £252,960 respectively.
Well-known holiday locations in Cornwall such as St Austell, Bideford and Mousehole have also seen gains as the tourist industry has seen a ‘Brexit Bounce’. This provides a marked contrast to prime second home locations like Salcombe and Sandbanks that have seen declines in prices mirroring the softness in prime London prices.
2018 top 10 holiday letting property sales value increases, by postcode district
| Location | Average Price | Increase in past 12 months |
| NP16 – Forest of Dean, Wales | £351,315 | +7% |
| NP7 – Brecon Beacons, Wales | £233,965 | +6% |
| SP7 – Cranborne Chase, Wiltshire | £300,620 | +5% |
| ME13 – Kent Downs, Kent | £343,481 | +4% |
| ME12 – Isle of Sheppey, Kent | £252,960 | +4% |
| HR8 – Malvern Hills, Worcestershire | £413,361 | +4% |
| PL25 – St. Austell, Cornwall | £221,570 | +4% |
| EX39 – Bideford, Cornwall | £273,888 | +4% |
| TR19 – Mousehole, Cornwall | £291,275 | +3% |
| IP12 – Suffolk Coast & Heaths, Suffolk | £342,393 | +3% |
Prices in Wales have primarily been driven by a surge in transactions as people rushed to complete purchases ahead of the switch from stamp duty to the new Land Transaction Tax which came into effect on 1st April 2018. Locations such as the Forest of Dean and Brecon Beacons are consistently popular for second homes and holiday lets and investors
Highest sales volume growth since 2016, by postcode district
Postcodes seeing the highest increase in sales since 2016 compared to the previous 2 years.
| Postcode | Sales Volume Growth |
| LA19 – Bootle, Lake District | 154% |
| LL44 – Dyffryn Ardudwy, North Wales | 143% |
| SA39 – Pencader, Mid Wales | 126% |
| SA68 – Cresselly/Saundersfoot, South Wales | 107% |
| LL47 – Portmeirion/Talsarnau, North Wales | 89% |
| LL71 – Llanerch-y-medd, North Wales | 89% |
| LL49 – Porthmadog, North Wales | 85% |
| SA19 – Llandeilo/Brecon Beacons, South Wales | 82% |
| LL32 – Conwy, North Wales | 81% |
| SY18 – Llanidloes, North Wales | 79% |
| LL37 – Llwyngwril, North Wales | 75% |
| TD12 – Coldstream, Scottish Borders | 75% |
| LL35 – Aberdyfi, North Wales | 73% |
| NE19 – Kielder Forest, Northumberland | 73% |
| SA65 – Fishguard, South Wales | 71% |
Alistair Malins, CEO of Second Estates, says, “Holiday lettings can provide investors with better returns than buy to let properties, but knowing where to invest is key. Well-known locations like Salcombe may seem like obvious options, but properties are prohibitively expensive and prices have stalled in recent years. We’re starting to see a resurgence in less expensive seaside locations that are starting to catch up with their more glamorous neighbours. Wales also offers great value and it’s unsurprising investors have moved swiftly to snap up properties and avoid the hike in transaction costs.
“Second Estates is the first fund to operate in this market, making it easier for sophisticated investors, family offices and institutions to benefit from these returns without the associated hassle. We use booking and valuation data to intelligently predict the highest yielding properties in high value regions to pinpoint properties that will deliver an excellent return for investors. We also manage the properties on behalf of investors, to maximise occupancy rates. This drives the best yields for investors, whilst also delivering more vital tourist income for local communities”
Notes to editors
Data sources: HM Land Registry, May 2016 – May 2018
Methodology: Sold house prices from the UK Land Registry were analysed for the top 500 postcodes with the highest percentage of holiday homes. Postcodes only included with a minimum of 20 sales per year on average.
Press contacts:
Sofia Cabrera/ Max Foster +44 (0) 20 7924 5656 / secondestates@capellapr.com
About Second Estates
Second Estates acquires and manages a portfolio of holiday accommodation offering HNWI, sophisticated and institutional investors an easy way to benefit from the UK’s booming holiday let market with their holiday property fund. Second Estates is aimed at investors that want long term exposure to UK property prices and a growing underlying rental income stream that increases above inflation, but without the hassle of managing the property.
Second Estates uses booking and valuation data to intelligently predict which properties will perform best, handpicking each investment based on more than 25 years of market expertise. This allows us to pinpoint properties that will deliver an excellent return for investors. We furnish our properties to a high standard and provide hotel quality services, creating inspiring spaces that guests love to spend time in and want to return to.
Help keep news FREE for our readers
Supporting your local community newspaper/online news outlet is crucial now more than ever. If you believe in independent journalism, then consider making a valuable contribution by making a one-time or monthly donation. We operate in rural areas where providing unbiased news can be challenging. Read More About Supporting The West Wales Chronicle
