Buy-to-let investors looking at UK holiday homes

Posted: 30 Jul 2008 13:31:17 GMT

There are an increasing number of buy-to-let investors who are hoping to put money into a holiday home in the UK, according to new research.

The Property Investor Show has found that 20 per cent of investors want to purchase holiday homes in the UK to rent out to cash-strapped holidaymakers.

According to the show, the credit crunch is forcing the general public to stay in the British Isles for their holiday and this is driving demand for rental properties.

Properties on the south-east coast of England are the most popular with 32 per cent of investors searching for investments in Ramsgate, Margate and Eastbourne.

Commenting on the move to holiday rental homes, Nick Clark from Homebuyer Events said: "With more people switching to holidaying in the UK, the market for holiday homes is looking good, as investors take advantage of above average rental yields."

The programme makers commented that holiday homes are set to experience "solid capital growth" and rental yields as high as ten per cent in certain areas of the country.

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