With house price growth currently at 7% year on year, and an average annual rental income of nearly £23,000, the county offers excellent long-term potential for anyone looking to invest – particularly in popular tourist spots such as Lytham, Morecambe and Clitheroe.
Looking at the UK overall, Lancashire ranks in ninth behind destinations throughout North and South Wales. Blaenau Gwent in South East Wales topped the list, followed by Denbighshire and Rhondda Cynon Taf.
The Holiday Let Outlook Report 2022 analyses Sykes’ revenue data, alongside current house prices and house price growth, to drill into the long-term investment opportunities within holiday letting across the UK.
Location and amenities are two of the most important factors in a holiday home’s success, so within the regions listed, any property must also be in a good location and offer desirable facilities to strengthen the investment potential.
The report also contains consumer research, Sykes’ booking figures and insights from rental data and analytics company AirDNA, to paint a clear picture of the UK’s holiday let market.
According to the poll of UK holiday home owners commissioned for the report, a quarter (25%) only started letting during the pandemic, with the staycation boom fuelling a rise in people entering the market – including investors, as well as those renting a second home already owned, setting up glamping accommodation or transforming part of their home.
In fact, bookings for Sykes’ holiday lets in 2022 are up 35% compared to pre-pandemic levels – with bookings to Lancashire 76% higher this year than in 2019.
Graham Donoghue, CEO, Sykes Holiday Cottages, said, “The shift towards staycations had already begun pre-pandemic, Covid has just accelerated this trend. And although international travel is becoming easier, we now have new types of staycationers that are here to stay.
“Because of growing demand for breaks to Lancashire and rising house prices, there has perhaps never been a better time to invest. There are monetary benefits to entering the market, but by holiday letting you’re also helping others experience and enjoy your own part of the world while supporting the local tourism economy.”
For those looking to maximise the revenue potential of their holiday lets, Sykes’ analysis found that a hot tub is the leading money-boosting feature to install – adding an estimated 49% to annual revenue.
Income figures also suggest luxury amenities such as open fires could boost earnings by 19%, on average, while a rise in pet ownership fuelled by the pandemic has seen pet-friendly properties earn 9% more.
The average house price and house price growth for Lancashire is £198,824 (+7% YoY) The Sykes Holiday Cottages’ report is based on internal bookings, revenue, website and owner data from January 2019 to February 2022.