Hard times for the holiday let industry in the UK?

[user1477391263]

Seems like the post-COVID recovery, crappy weather, COL and other factors have dampened the situation for people owning holiday lets in places like Cornwall. On the other hand, perhaps (as the article hints towards the end) there will be an increase in long term rental properties coming on to the market.

https://www.theguardian.com/money/2024/apr/07/britains-staycation-boom-may-be-over-as-bookings-dry-up?utm_term=Autofeed&CMP=twt_gu&utm_medium&utm_source=Twitter#Echobox=1712464698

Anecdata from talking to friends tells me that many people are fed up with the rising cost of holiday lets in these places, more and more demands being placed on guest re cleaning etc., and the fact that so many local places like restaurants are understaffed; of course, part of the issue may be that locals have to an extent been priced out of the local housing market, meaning there are fewer people available to clean, mow lawns or wait on tables. It may be a good thing if the local housing market self-corrects in this manner.

Its not just the revenue stream and profit margin is it? You also have an appreciating asset. Out of interest do you live in the same area that you let out holiday properties?

PPs have described "poor value" here and mostly its the service offering. Every one knows that during covid there were exceptional requirements around cleaning and changeover.

We are no longer in the covid period so why is it that many owners want the holiday makers out by 10 having licked the floor clean and still want to pass on £150 cleaning charges? I'm quite aware that some renters are awful and do damage - that is what the deposit is for. However most are not like this and post covid I simply don't see why the excessive cleaning coupled with a sizeable cleaning charge and a rule book which rivals War and Peace are still required. "Normal" used to be generally in good order, clean and tidy, run the hoover around before you leave.

So in the UK at least its a combination of rigid rules diminishing the holiday experience and poor value overall. @Meadowfinch description was IME more typical before the market went mad.

Its the extent of it. I've always left places in decent order- everything put away, clean and tidy and vaccuumed the evening before leaving. I've tended to strip beds although it used not to be a standard requirement. I've left dirty crockery in the dishwasher because that was what the instructions asked us to do rather than leave it running for the final wash.

DC recently rented a weekend cottage which slept 2 for a weekend where it was a requirement to wash all the floors and windows before checking out at 10:00 and paying a cleaning charge of £100 for a one bed cottage with two people. Of course the ridiculous cleaning requirements were not available until arrival. Failure to clean the windows would result in loss of deposit.

Its this kind of nonsense which PPs are talking about and its increasingly common. When they are being asked also to stump up sizeable cleaning fees on top of high rentals and then do the bulk of the cleaning job themselves - its not a holiday.

@Gininvolved you could clean it yourself. £150 gained straight away. I'm not sure what you think you should earn from owning a property? Someone else takes care of the bookings, someone else cleans it. Clearly you could earn more, but it would require doing the work I guess.

@Gininvolved could also sell the property and invest the proceeds in the stock market instead which has an average annual rate of return of 10%. Assuming her annual profit is less than that. It would also have a wider social benefit of providing housing stock AND investment capital.

What gets me annoyed is the ridiculous booking fee. I just paid £48, yet I booked it. I used my iPad, my electric and my time, yet I’m charged £48…….just why?

We’ve always done holiday cottages in U.K.

It’s always been arrival at 4 and out by 10. They still have to clean and remakes all the beds.

I think the rental costs are a big issue. I’ve tried looking for a nice 4 bed place in Cornwall, but even for one week it can come in at £7k+ during peak season. We have a really nice home after 19 years of renovating and I don’t see why I should ‘slum’ it on holiday, and I definitely won’t pay 2-3 months mortgage equivalent to stay in a house for 7 days that’s not even half as nice as my own home.

Friends who used to do it have stopped recently, saying that because rentals are now extortionate in these places, they’ve had reservations cancelled at short notice (no wait staff, no chefs) and ended up in the supermarket most nights. If rentals out-price locals and essential seasonal workers, then the system is broken.

Nicely summed up @Twiglets1 - Mallorca I believe banned Airbnb by the way

People do still rent villas out but it's different rules

Honestly if people have tight budgets but drive it's cheaper in many cases and way more relaxing to do Eurocamp with a really high end mobile home or camping with them if your family like camping and way more facilities and no stupid rules about cleaning

A lot of the holiday cottage companies are dreadful, especially Sykes.
They charge a fortune and there is no quality control at all. Often dated properties and the 'dog friendly' cottages are a scam as all they mean is that dogs are allowed. It doesn't mean that the cottage is safe or suitable for dogs.

We used to own a holiday let in Cornwall. We sold it for a number of reasons but one of them was we became more and more aware of the damage it was doing to the local economy and house prices for locals.

Have you considered changing it to long term let? No agency fees, cleaning costs, utilities, council tax etc and you’re helping the community. My mum did this with hers - it wasn’t one of the very expensive holiday lets and it’s a lot less stressful and about the same. If you look for rentals in the area there are barely any at all because they’re all holiday lets (many of which are owned by locals themselves).

Sykes was cheaper than anywhere else for me- same property listed in a few places.

@BusyMummy001 I'd highly recommend hopping over the channel to France. Far cheaper, less crowded, and frankly by the time most people have driven to Cornwall they may as well cross the channel.

Cheaper but often rubbish.
Last place was so dated and the shower didn't work. We left early.

My SiL has a holiday cottage next door to her own house. It’s in a lovely setting and would be out of the price range of most families, to purchase as a home.
It is beautifully furnished and well kept.
She employs three local ladies to do cleaning- she pays them over double the rate of a normal domestic cleaner, a local laundry deals with the good quality towels and linen,
a local window cleaner visits weekly in season, a local handyman is on retainer for the constantly needed maintenance.
There are regular visits by local tradesmen. For instance the drain cleaner is on speed dial as so often people put unsuitable items down the loo.
The local pub and fish and chip shop and small grocery are grateful that my SiL advertises their services to her guests.
The property is spotlessly clean, that’s why check out time is
10 am to allow a thorough clean between guests.
If the cleaning team finish before 3pm check in time my SiL rings the guests to let them check in earlier.
My SiL pays a waste disposal company to deal with rubbish and recycling.
She leaves a generous welcome pack and cleaning materials plus quality toiletries.
She has about 85% re booking from guests, and doesn’t use one of the agencies but deals with everything herself.
Many families who couldn’t holiday in hotels for health or cost reasons return year after year and have lovely holidays.
My SiL doesn’t make a great deal of profit but it helps as she doesn’t have much of a pension.
She is deciding to sell up because of the groundswell of public opinion against holiday lets.
I think it’s sad. Her efforts benefit the local economy and lots of families have great holidays.
The house will no doubt just be bought as a second home as so many in her lovely area have been. Only outsiders will be able to afford it.
I can’t see any gain from this at all.

10am check out is perfectly normal and has been that way for decades. Ditto stripping beds and removing rubbish.
We're in one right now. Lovely property. Well heated. Hot tub clean and working. All the clean beds and towels you could want. Owners left a bottle of Prosecco and a huge box of chocolates.
We stay in a holiday let at least once a year. Can’t remember a single one that was a complete disaster.

It’s karma for disgustingly raising their rental prices during the covid scenario, it was a complete rip off. I go to a leisure facility that is also a log cabin site. During Covid they were double their usual price, some regular holiday makers couldn’t believe it and wouldn’t be coming back, pure greed.

My thoughts too for next year - esp as the drive to Cornwall is a nightmare!!

Uk cottage prices went up massively during COVID as lots of people didn't want to travel overseas so the market could bear it. The prices haven't come down though, and even with the cost of flights it's cheaper to go overseas for guaranteed sunshine, especially if you are happy with budget accommodation.

Around here it was definitely seen as an easy way to make money during covid- you saw a lot of rental flats/houses converted into Air BnB type places. It obviously damages local communities, and it's also often not pleasant for the neighbours of these places at all. People forget that whilst they may be on holiday, everyone around them is trying to get on with their lives, go to work and so on.

As others have said, the lack of rental properties for local people means a lot of local businesses struggle to recruit staff, also the difference between the season and the off season is huge, so it makes it hard to run a business year round. Also, services such as public transport etc aren't available to cope with the massive influx of people in the summer. All of that means people have a less than ideal experience whilst on holiday.

Personally, I think now that most people are happy to go abroad again, the short term holiday let sector will probably find it's oversaturated, and the prices people are charging will have to go down. I also hope it will see a bit more regulation because it does bother me that people can rent out anything without even basic checks being done.

And I think long term it'll benefit a lot of communities if these houses do return to the residential lettings sector or even get sold.

A weeks holiday in Cornwall was £2400 for a self catering cottage last August. We went on a cruise for 7 nights instead and it cost us £1700 for the 3 of us including all our food etc.........

Holiday lets have got too greedy, too restrictive, I don't want to clean your whole house and then pay £200 for a cleaning charge on top, the have decimated communities and let's face it the weather in the UK is mainly shite so I would rather go somewhere where it is a high chance I would get better weather.

They absolutely raked it in 2020-22 and profiteered hugely. Some lowering of prices might help people decide to take a holiday in the UK, and not doing things like making people pay for a cleaner then having to clean themselves and 5pm check ins.

I think the best experiences we have had have been where it's an annexe or barn on the owners land, nicely furnished and no stupid rules and it's clear it's an 'add on' and a nice bonus to an existing life and it's something they get bookings for maybe a few times monthly, rather than a 'one in, one in' kind of hamster wheel run as a 100% source of income. One in particular stood out for me and people gave it rave reviews on Airbnb too- it was an annexe to a lovely big home in a nice bit of the Wirral- one bed with lounge, stocked kitchenette area and secluded patio garden, beautifully kept, top quality furniture, magazines etc and not expensive, around £90 a night if I remember correctly. . Not for families but great for couples. Owners friendly and chatty but not intrusive , no silly rules, nice pub 10 minutes walk away as was a general shop and cafe. Bus to Liverpool 10 minutes walk away, cab to heswall with masses of restaurants and coastline around £6 - there are good ones but in my opinion the good ones tend to be a bonus for the owners, not the sole income.

With such a rainy winter, I think most people who can afford to get away will be looking to sunnier climates and hopefully prices will come down to reflect that.

I agree with the comments re the audacity of not only paying a cleaning fee on top of the cost but having to clean to a high standard- sorry but what exactly am I paying a cleaning fee for?! When I've stayed in Air BnBs, I've left the property tidy, but no way would I be scrubbing floors or windows like some posters claim to have done and I've never had any comeback from the hosts.