The Cumberland Building Society has launched its first Holiday Let Index, examining confidence, investment and lending across the UK market.
Produced with independent market research agency Pegasus Insight, the report draws on responses from 125 mortgage brokers, private landlords and homeowners.
The participants comprised 25 brokers, 50 private landlords and 50 homeowners with at least one holiday let property. Respondents and properties were drawn from England, Scotland and Wales.
The index examines market confidence, investor behaviour, lending activity and the effects of recent tax and regulatory changes. It also considers changing guest behaviour, the profile of holiday let investors and demand for specialist lending advice.
Mortgage search and product availability data from Twenty7tec were used to provide further market context.
The launch follows a reduction in The Cumberland’s holiday let mortgage rates.
Grant Seaton (pictured), head of intermediary lending at The Cumberland Building Society, said: “Given everything the holiday let sector has experienced over the past few years, it would have been easy to surmise that investor confidence had fallen sharply.
“What our research actually revealed was a much more nuanced picture, with several findings that challenged some of the assumptions surrounding the market.
“That’s exactly why we wanted to produce the Holiday Let Index.
“We wanted to hear directly from the people who know the market best. By bringing together the views of brokers, landlords and homeowners, we’ve been able to build a clearer picture of what’s happening across the sector today, how recent changes are shaping decisions and where opportunities continue to exist.
“As a mutual, listening has always been an important part of how we work. Every conversation with a broker or borrower helps us better understand the market and the people we support, and this research is another extension of that approach.
“We hope our inaugural Holiday Let Index becomes a valuable point of reference for brokers, investors and anyone with an interest in the holiday let market. More importantly, we hope it encourages further discussion about where the holiday let market goes next.”
