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Should you Buy a Holiday Lodge in the UK?

Traditionally purchased for personal use, the impressive performance of the domestic holiday market in the UK over the last few years as holidayers begin to embrace domestic staycations as opposed to overseas holidays has seen investment in the sector increase massively. As a result, the market has transformed into an extremely strong investment class, offering investors above-average returns on their investment for lower purchase prices than alternative avenues.

Holiday Lodge Investment with Knight Knox

As the domestic UK holiday market continues to thrive, even after the COVID-19 boom, the holiday lodge investment market in the UK is proving to be one of the most profitable avenues for investors looking to diversify their property portfolio.

With this in mind, we have expanded our portfolio to offer investors the chance to purchase luxury holiday lodges in the UK’s leading domestic holiday locations. Take a look at our latest opportunity below!

Investment Opportunity: Waterview Place

Comprising 27 meticulously crafted and completed apartments, Waterview Place commands panoramic views that stretch across the town’s storied harbour. Each residence has been thoughtfully designed to capture the essence of the locale.

With affordability at the forefront, coupled with the promise of robust returns, Waterview Place stands as an enticing investment opportunity, ensuring that both investors and residents alike can partake in the allure of this distinctive and economically viable development.

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Waterview Place Scenic Views
Rookery Manor Lodge Interior

Investment Opportunity: Rookery Manor Lodges

Rookery Manor Lodges is an established holiday park consisting of 52 luxury holiday lodges in the heart of Somerset, one of the UK’s most desirable holiday destinations. Set across 28 acres of land in the stunning rural countryside, Rookery Manor Lodges is perfectly placed to allow guests to experience everything Somerset has to offer. The site is close to the beautiful Brean Sands, Burnham on Sea, Weston Super Mare, Mendips Glastonbury, Cheddar and more.

Lodge prices start from just £175,000 and offer a rental assurance of 12% NET for 5 years. Upon completion of this 5-year assurance, there is an optional buy-back clause for 100% of the initial purchase price.  

This means that investors will receive continuous rental income throughout the rental assurance, regardless of whether or not the lodge is tenanted, followed by the option of a 100% buy-back option upon completion of the assurance, equating to a 60% increase on your initial investment. In addition to this, investors will also benefit from 2 weeks of personal use annually.  

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Holiday Lodges for Sale – What to Consider:

Returns: As with any investment, the most important aspect you need to consider is the potential return on your investment. In the case of holiday lodges, the majority of your return will be in the form of rental income. Some lodges are even sold to investors with premium rental guarantees that ensure a set amount of rental income for a specific period of time.

Location: When investing in holiday lodges, to maximise your income you want to ensure that your lodge is consistently booked up so you receive rental income on a consistent basis. With this in mind, it is essential to invest in popular locations that record high levels of tourism.

Amenities: Another factor in ensuring that your lodge is consistently booked is the amenities of both the lodge itself and the overarching site. The wants and needs of those looking to holiday within the UK have shifted in recent times, with holiday homes featuring amenities such as hot tubs, smart TVs, games rooms and bar areas extremely sought-after nowadays.

Build-specification: To ensure your investment not only holds its value but actually appreciates over time, it is important to invest in lodges with high-quality build specifications as opposed to traditional holiday homes like caravans.

Holiday Lodges for Sale - Landal

FAQs

Are holiday lodges good investments?

Holiday lodges are an excellent investment option for property investors looking to diversify their portfolios. The domestic UK holiday market is set to see a largescale boom over the next 5 years with the UK staycation a strong alternative to an overseas vacation – resulting in luxury holiday lodges being let for a premium and offering higher returns.

Do holiday lodges go up in value?

Typically, your traditional caravans and lodges may depreciate in value from the moment they are purchased, however high-quality, new-build investments must meet the same requirements as traditional new-build properties. This higher quality can result in these kinds of assets appreciating in value in the coming years.

Can you make money from owning a lodge?

Yes, you can make a lot of money from owning a lodge.  Holiday lodges for sale are predominantly aimed at people who are looking to purchase a lodge with the intention of using it themselves during the holidays, however, investing in a lodge with the sole intention of renting it out throughout the year can result in extremely high returns as many holidayers continue to choose a UK staycation as opposed to abroad trips.

Get in touch today to find out more about our latest opportunities!

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