With holidays in England now permitted from July 4th but overseas travel still discouraged, the staycation market looks set to boom this year.
Covid-19 has had countless repercussions for the UK economy in general and the property market in particular, including a general slowdown in transaction activity and price growth.
Investors will be looking at the new industry landscape and thinking about where new opportunities could present themselves. In the long term, there will be good prospects for price growth in regions like north-west England as the market steadily gets back on its feet.
There could also be good potential for returns in the short term, particularly in segments like the holiday home market in England, which looks set to benefit from a staycation boom.
Staycations on the cards
While the Foreign and Commonwealth Office is continuing to advise against all but essential international travel, the picture for the domestic holiday market is much more positive.
Boris Johnson made a number of announcements in the House of Commons this week regarding further easing of lockdown restrictions in England from July 4th.
The prime minister confirmed the news many people had been waiting to hear for a long time – that overnight stays will be allowed once again, meaning holiday venues like self-catering cottages, cabins, hotels, B&Bs and campsites will be permitted to reopen.
There will be certain restrictions in place, such as no more than two households being able to stay together, social distancing rules being observed and shared facilities having to be kept clean.
Immediately after the announcement, there were reports of customers rushing to book stays at popular holiday destinations in England, particularly in rural and coastal areas.
‘Great news’ for tourism
All the signs now point towards a staycation boom in England, which is good news for the holiday home market and those who have invested in it.
Mr Johnson actively encouraged people to plan a domestic getaway, as the government looks to strike a balance between managing the ongoing Covid crisis and restarting the economy.
“Now is the time to send out a welcoming signal to those from other parts of our country [and] to roll out the welcome mat,” the prime minister said. “I wouldn’t hesitate to recommend staycations.”
Patricia Yates, director of Visit England, commented: “The confirmed timeline for reopening is great news for England’s tourism industry and the millions of jobs and local economies that depend on it.
“Giving certainty to businesses means they can work with confidence on their plans to welcome visitors back safely and in time to save as much of the peak summer season as possible.”
Investors will be keeping a keen eye on how this trend unfolds and what property market opportunities could arise as a result of it.
If you’re interested in finding out more about the holiday home sector in England, download Experience Invest’s new 2020 UK Staycation Market Report.
You can also contact us to discuss current investment opportunities.