Latest news with #holidayhome
Telegraph
a day ago
- Business
- Telegraph
‘I can earn £200k more a year': why landlords are switching to short-term lets, and how to join them
When Jay Allen secured the winning bid on Otherton Hall at auction, he had no idea how he was going to turn the 8,500 sq ft derelict farmhouse into a profitable business. Set on green belt land in the Staffordshire countryside town of Penkridge, the Grade II-listed property surrounded by protected wildlife species cost Jay £355,000. 'When I bought it, I didn't have a clue of what we were going to do with it,' says Allen, 42. 'I liked it, and I thought that some idea would develop.' Luckily for Allen, one did. He has since turned Otherton Hall into a luxury countryside retreat that can be let as a whole to holiday makers for block bookings. Short-term lets have the potential to generate much higher earnings than single buy-to-lets, says Allen, although planning permission was required to convert the property into eight suites, with a new-build extension on the side to house a swimming pool. This took a year to be granted, given the extra hoops to jump through with the presence of species such as the great crested newts and European long eared bats on the grounds. It took a further year for the conversion to complete. As the owner of a construction company and other investment properties, Allen had the resources and know-how to transform the building into a high-end holiday home – with a basement bar and games room that caters for up 16 people in a single stay. 'Rents are a lot higher on short-term lets compared to an AST [assured shorthold tenancy],' says Allen, who lives with his wife Anoushka, 41, and their two children in nearby Cannock. 'For the Christmas week we can get around £12,000. Although it sounds like a lot, when it's split between 16 guests per night it's not as bad as it sounds.' Over 12 months, Allen earns around £250,000 to £280,000 in gross income from the property, and spends around £120,000 a year to cover finance and running costs. If he had split the building into four apartments to rent out instead, he estimates he would collect a maximum of £60,000 a year. How to turn your property into a holiday let If you're considering converting a property into short-stay accommodation, rather than a traditional buy-to-let, you'll need to weigh up the pros and cons. This Telegraph Money guide will cover: Steps to consider 1. Research the market First, you'll need to think about location. Where you start searching could be dictated by the type of occupants you want to attract, and the letting model you plan to adopt. A traditional holiday let is rented out for one to two weeks to holiday makers in rural or coastal settings. Demand for these properties is high, says Jorden Abbs, chief executive of Commercial Trust: 'Since the pandemic, the number of people holidaying in the UK grew significantly and even after travel restrictions eased, the public had been exposed to how great it is to holiday across the UK and the holiday let sector has remained in strong demand.' Alternatively, you might consider providing serviced accommodation, which is often let for just a couple of nights to companies for their employees, and tends to be city-based. 2. Weigh up the finances If you own a buy-to-let property that you are considering converting to short-stay accommodation, do the sums to make sure it's a worthwhile venture. While holiday lets typically generate more income than a buy-to-let, it isn't guaranteed. Plus, you must factor in higher conversion and running costs, which will eat into your profits. Andrew Soye, director and founder of Holiday Cottage Mortgages, said: 'Yes, it's true you can earn a much greater income from a holiday let, but it must be the right property, with the right features in the right location. 'Investors use a rule of thumb that says if you can purchase a property where the rent divided the purchase price is around 10pc, then your holiday let stands a good chance of being a success.' 3. Factor in mortgage costs If you need to borrow money to buy the property, the type of short-stay accommodation you plan to run will impact the availability and cost of your mortgage. Holiday let lending has grown over time, says Mr Abbs, but some lenders will not accept serviced accommodation where the property is offered for a number of days, rather than week-long bookings common with traditional holiday lets. Getting the mortgage can be a complex process, so it can be a good idea to ask a mortgage adviser to help you. 4. Check out planning permission The introduction of a new use class for holiday lets in England has been discussed, but no action has yet been taken. If it were introduced, this would mean that planning permission would be needed even if no structural changes had been made. London, however, has its own rules. If you plan on letting out a residential property on a short-let basis for more than 90 days you will need to apply for planning permission first. In Wales, local authorities have the power to insist planning permission is sought using the same powers councils have to restrict the conversion of homes into a House of Multiple Occupation (HMO). Gwynedd council is the only local authority to take this step so far. In addition, owners of leasehold flats in England or Wales must always check if the freeholder has any restrictions in place that stop you letting the property as a holiday or short-term let. Anyone making structural alterations to a property should seek advice on planning permission before going ahead. Advantages of short-term lets You can increase your earning potential The main advantage of short-term lets is the increased earning potential, when compared to traditional buy-to-lets. It's the reason why property investor Ben Smith* decided to pay thousands to convert his latest investment to short-stay apartments. With the potential to earn 300pc more a month from two serviced apartments let to business travellers and holidaymakers, compared to renting out the property as a three-bedroom home, for him the short stay route was the obvious choice. Living in Brighton with his soon-to-be-wife and their three children, Smith employed sourcing agents to scour cities and towns such as Birmingham, Leeds, Stoke and Crewe to find off-market investment opportunities with good earning potential. When presented with a three-bed house in poor condition available below market value in Crewe, Cheshire, Smith 'ran the numbers'. Their decision to buy in Crewe – which is not a typical holiday destination – was strategic. Having a property here allows Smith to cash in on not just weekend stays, but business travellers throughout the week. He calculated that the conversion costs to transform the rundown house into high spec apartments would be around £80,000, double that of a straightforward refurbishment to let the property as a home. The income the apartments could generate made it a risk he and his wife were prepared to take – but they'll still need to wait a few years until these costs are covered. Smith said: 'Because of the amount of money we've put in to converting them into flats, if we sell them both now we wouldn't have made a penny on the refurbishment. 'But what it's allowed us to achieve in monthly gains over and above what we would have done as a residential house, over the course of a few years it will more than pay us back – and that's where the benefit is.' Renters rights do not apply Unlike with buy-to-let properties, occupiers of holiday lets or serviced accommodation do not have a right to reside there. Mr Soye said: 'With holiday lets, the legal basis of occupation is called a 'licence to occupy', which means guests effectively have no rights. If they refuse to leave, you can call the police.' With more stringent regulations in the form of the Renters Rights Bill on the way, which will make it harder for landlords to evict tenants, this could be a welcome benefit for some investors. However, it doesn't mean holiday lets are rule-free. Depending on where your holiday let is based, you may be subject to a licensing scheme to make sure you abide by certain standards. This is already set up in Scotland, while Wales is moving towards the same goal. The development of a digital short-term let registration scheme in England is underway, and testing is planned to start in the next 12 months. You can enjoy your investment Many investors choose this route as the owners of holiday lets can stay in their own accommodation whenever it's not being let out. Of course, the more time you spend there the less money you'll earn from your property. Drawbacks of short-term lets Higher conversion and running costs While there is potential to make more money from renting out a holiday let, the conversion to get the property ready could be pricey – and the upkeep can be more expensive than what you'd expect to pay for a buy-to-let. Allen spent £1.65m on the conversion of Otherton Hall and spends around £10,000 for expenses like the mortgage, cleaning and ongoing maintenance. 'Everything needs to be immaculate if you want great reviews,' he says. 'It's not a set and forget kind of business that keeps bringing you in money every month, it's more hands on than that.' He added: 'Just to do the laundry after each changeover costs £400.' While an eight-bedroom farmhouse is an extreme example of how high running costs can be, all holiday let owners are responsible for utility bills and council tax, where applicable, or business rates – costs that landlords do not need to shoulder. And housekeeping is entirely the responsibility of the owner, a cost borne by the tenant when there is a traditional tenancy in place. Success hangs on location It's important to bear in mind that not every property that is converted from an owner-occupied home or buy-to-let into short-stay accommodation will be a success. It will likely hinge on whether there is demand for your property from holiday makers, or business travellers who need to be close to transport links and major cities. This is why the market research step is so important. No longer preferential tax treatment Until April 5, owners of furnished holiday lets who bought the property in their personal name could deduct their mortgage interest from their rental income before calculating their tax liability. This right has now been removed and replaced with a 20pc tax credit, putting them on an equal footing with other buy-to-let landlords. However, owners who buy properties within a limited company do still have this right. If you decide to move your properties from your personal name into a limited company, you must pay stamp duty as you are effectively selling the property to your limited company – so take tax advice first. This was just one of the changes made when the furnished holiday lettings tax regime was abolished this April. Others include the removal of beneficial capital allowances. *Names have been changed
Daily Mail
3 days ago
- Entertainment
- Daily Mail
Shirtless Adam Rickitt, 47, show off his buff physique while sunbathing with bikini clad wife Katy before downing a bottle of champagne as the couple celebrate buying a home in Sicily
Adam Rickitt and wife Katy celebrated their 'life long dream' of buying a holiday home in Sicily the same day as he turned 47 on Thursday. The former Coronation Street actor and GMB host, also 47, couldn't wipe the smiles off their faces as they topped up their tans and enjoyed a night out on the island. Adam, who wed Katy in 2014, took to Instagram with snaps of the pair as they signed contracts to take ownership of the property before heading out to top up their tans. The ex soap star looked decades younger than his years as he showed off his tattooed physique in swimming trunks, while his wife stunned in a vibrant bikini. Later the couple headed out for the evening with Katy looking stylish in a yellow dress and quirky pink ankle boots she's received off Adam as a birthday gift. Adam, who wed Katy in 2014, took to Instagram with snaps of the pair as they signed contracts to take ownership of the property before heading out to top up their tans Adam was well and truly in a party mood as he downed a bottle of champagne, before work started on the home the following day. Adam captioned the post: 'We did a thing!! It's been a lifelong dream to have a Sicilian not not a it is ours!!!' Before adding: 'Welcome to the next chapter @katyrickitt ...x'. Meanwhile Katy gushed: 'Happy birthday to my Italian stallion, my best friend, soul mate and my little hero… @adamrickitt Honestly don't know what I'd do without this man who has literally excelled himself lately by whisking us away and creating our own corner in the #happyplace'. 'You are truly magnificent my little bean… today we will have a day off from seeking Wi-Fi, hoovers, drills and diy to have sun, sea and cocktails!!!!!! Yaaasss!!! #happybirthday' Katy was returning the favour after Adam paid tribute to her on her birthday with a slew of heart-warming Instagram snaps earlier this month. He shared some photos of his partner with his legion of social media fans, including one which saw her taking a fun selfie. Katy, an ITV presenter, pouted for the camera while sitting on a sun lounger on the beach in the cute holiday pic. The ex soap star looked decades younger than his years as he showed off his tattooed physique in swimming trunks, while his wife stunned in a vibrant bikini Meanwhile Katy gushed: 'Happy birthday to my Italian stallion, my best friend, soul mate and my little hero… @adamrickitt She wore a white swim costume with brown clasps and added a white and pink alice band for the trip, accessorising with some pink-rimmed sunglasses. Another wholesome photo saw the pair, who got married in 2014, embracing with Adam sporting a mid grey jacket and white shirt, showing off his dazzling blond hairdo. Katy sipped away on a cold drink in a further snap, cutting a laidback figure in an olive Adidas hoodie, teaming it with black and white tracksuit bottoms and a white handbag with a gold chain, completing the look with multi-coloured nail polish. The birthday girl also donned a baggy hooded light grey dress with hot pink and black animal print in a fun picture and, in a final photo, could be seen getting a tattoo while wearing a black t-shirt and fire orange trousers. Her husband offered an emotional message to her in a sweet caption, writing: 'Another year my beautiful @katyrickitt ...and i don't think i could be any more in awe of you. You shine every day and still take my breath away without even knowing. 'You're more than my partner, you're my everything, and to see how much you've grown in these last 12 months gives this old dog inspiration to learn new tricks too. 'You make every person you meet you make me so grateful for that 1st day. So many adventures sharing them with you is what gives meaning. 'Happy Birthday Bean. I love you xxxx'
The Sun
23-05-2025
- The Sun
King Charles turns royal Sandringham retreat into £6k-a-week holiday home open to public
THE King has turned a royal retreat at Sandringham into a posh £6,300-a-week holiday home open to all. Charles has refurbished turreted three-bed Victorian house The Folly, which was once the love-nest of Edward VII and his mistress Lillie Langtry. 6 6 6 Holidaymakers can now follow in the footsteps of royalty by staying in the retreat, located on the private woodland of the estate in Norfolk. The property, said to feature royal artefacts, to be fitted out 'to the highest standard' and blending 'timeless heritage with refined, contemporary comfort', can sleep up to six. Visitors willing to fork out £6,300 a week — the going rate in the school holidays — can go up the fairytale-like turret to look out over the estate. Downstairs, guests can walk through French doors from the drawing room on to the lawn, or get dinner ready in the kitchen — complete with a butler sink. Agency Oliver's Travels, which is marketing the house, states: 'With input from the Sandringham team, The Folly honours its romantic past while embracing modern comfort. "Period features — stone hearths, arched entryways, hand-finished doors — have been lovingly preserved. "Throughout the house, royal artefacts from the private collection add depth and authenticity.' 6 6 6
The Sun
20-05-2025
- The Sun
Nightmare neighbours chuck MUD on Grand Designs-style home & annoy guests – they say it's an ‘eyesore' but they're wrong
NIGHTMARE neighbours have allegedly harassed and thrown mud on a Grand Designs-style home, with residents calling the property an "eyesore" - but the owner claims they're wrong. Karl Jones, the owner of a luxury holiday barn conversion in the Welsh countryside, revealed a village has shunned him after complaints that he turned it into an "alien ocean liner" where guests parade naked. 11 11 11 The property developer is furious with locals who protested about his £300-a-night barn makeover. He claims he was forced to call the police after mud was thrown at the house and guests were allegedly harassed during their countryside breaks in Wales. Villagers have complained their lives are being ruined by 'rowdy visitors playing loud music' and the 'noisy' use of a hot tub. Locals say the 18ft glass windows in the barn end make it look like an ocean liner, not a country barn. Owner Mr Jones claims the accusations are 'unfounded' and 'fabricated' - and some guests say people have been 'trespassing' and 'verbally harassing' them. His barn at Penisarwaun, North Wales, has had a back-dated planning bid thrown out. But Mr Jones blasted: 'As someone born, raised, and still proudly residing in Wales, my intention has always been to celebrate the beauty of this area and our country as a whole. 'It is incredibly disheartening to feel ostracised by the very community I belong to – simply because I sought to create a better future for my children in the wake of the financial challenges brought about by the pandemic.' Mr Jones said he and his team had been 'under the impression' that planning had been previously granted. He added: 'The council and their team visited the site multiple times, signed off on the work being done, they were fully aware of the build we were undertaking. Moment neighbour 'STEALS' 1.9m of next door's garden & tears down their shed in bitter land row while they're on holiday 'We were always under the impression all work was approved. We believed the process had been completed.' The property was hit with a planning enforcement notice in April, ordering it to stop being used as a short-term holiday let, revert to being an annexe of the main house, Plas Coch, and have its windows removed. He claimed there had also been 'two troubling incidents' – involving mud thrown over a hedge, trespassing onto the property and verbal harassment of guests, reported to police on 30 April and 4 May. Mr Jones said he reported another incident to the police while construction work was underway on the barn. Fuming neighbours had taken to the council to complain about "rowdy visitors playing loud music" and noise pollution from a hot tub where nude holidaymakers hang out. When the retrospective planning application was submitted, many villagers objected to it — protesting the 'massive' and 'horrendous' window. 'MISERY' One resident slammed the house as having a "harmful effect on a small, quiet area of rural Wales" and described a loss of privacy for residents. Janet Gayther, 82, whose home is overlooked by the giant window, said she frequently sees guests in their birthday suit - and it's making her life a "misery". "I've seen all sorts - people coming out and getting in the hot tub without clothes. "I've driven past in the car and visitors have been sprawled out in the nude on the sofa. "They also climb in and out of the bath on the mezzanine floor." The great-grandmother added: 'There's the noise when they are having fun and games in the hot tub, having a drink and playing loud music. "It's making my life a misery at times." The elusive lodge can be reached only by a narrow road and is advertised as a 'haven of tranquillity' in the Welsh countryside. Neighbours say they've had visitors knocking on their door at 1am, trying to find it. Michael Sharp, 72, said people "behave really badly" and that it's the luxury hot tub that seems to "provoke bad behaviour". He said: 'We can hear the noise inside the house, even with the doors closed. "People are coming for a good time. We have had drones flying above our property. "Some people are completely selfish and not community-minded.' Mr Sharp told NorthWalesLive: "It just looks like some huge ocean liner all lit up in the night floating in the middle of the countryside. It's an alien structure, it bears no resemblance to the original barn. "We would just like the thing knocked down." A Gwynedd council spokesperson said: 'No appeal has been registered in relation to the planning application or the enforcement notice for Plas Coch, Penisarwaun.' 11 11 11 11 11 11 11
News.com.au
19-05-2025
- Business
- News.com.au
Jaggad owner Bec Judd and AFL great Chris Judd sell Arthurs Seat holiday home after finishing reno
Rebecca and Chris Judd have sold the Arthur's Seat holiday home and renovation project they finished only a few months ago. The power couple, initially known for Chris's on-field success in the AFL as a two-time Brownlow Medalist and Carlton stalwart, are increasingly making headlines for Bec's style-savvy and businesses including the Jaggad sportswear label. Regularly documenting their home renovation projects on social media, the pair announced earlier this year that they had 'exciting times ahead' as they listed the ' Arthurs seat beauty ' in the Mornington Peninsula hinterland. Listed with a $2.85m-$3m asking price, it is not yet clear what was paid for the property, which records show has been on the market since March — though the Judd's plans to sell first emerged in February. Marshall White Stonnington director Ben Vieth handled the sale, and yesterday confirmed the deal but not a price. However, Mr Vieth said the result had been a happy one for the buyers and sellers. 'It's a really good result for everyone,' he said. 'And Bec and Chris are excited to announce what's next, but I'm not privy to that yet.' The renovations were overseen by the Judds and The Melbourne Builder & Co with the gardens designed by Nathan Burkett Landscape Architecture. While the home was being marketed Mr Vieth described it as 'literally a compound which you turn up to on the weekend and it has everything'. After its sale he added that while the pair would be sad to say farewell to a place they had enjoyed with their family, the fact they had proudly put their name to the home had helped convince the buyers of the quality of the works. 'This was genuinely designed by Bec, and it speaks for itself,' Mr Vieth said. Among the landscaping there is a pool, lake, dam and a pavilion. The property is also close to wineries and beaches. Records show the Judd's bought the home for $1,212,500 in 2016, with the Mornington Peninsula experiencing a property market surge during the pandemic that followed. PropTrack data shows that in May, 2015, the median house price for the municipality was $550,000, but that figure more than doubled to $1.23m by 2022. However, it has subsequently dropped to $1.085m. Today, top-end buyer's agent Matthew Cleverdon from Morell and Koren said 'there are opportunities presenting' on the Mornington Peninsula for buyers who were patient.
