The number of holiday let mortgages has exploded, with 445 options now available, compared to just 362 in August 2023.

That’s not all – the number of lenders offering these deals has also increased, now sitting at 34 compared to 32 just a few months ago. The majority of these lenders are building societies, so if you’re looking for a friendly face, you’re in luck.

The Taxman’s Coming

However, this boom in holiday let mortgages comes with a warning: the tax landscape is about to shift dramatically. From April 2025, the government is scrapping the tax advantages enjoyed by furnished holiday lets, meaning landlords will have to pay more.

Don’t Let Your Heart Rule Your Head

This change will come as a shock to both new and existing landlords. So, what should you do?

Rachel Springall, a finance expert at Moneyfactscompare, advises: “It’s important to do your research and choose a property with your head, not your heart.”

Get Expert Advice

She adds: “Getting advice from a listings service can help you understand seasonal dips and find the right property for you.”

Holidaymakers Turning to the UK

Despite the tax changes, there’s still a lot to be optimistic about. Many people are opting for staycations due to rising travel costs and concerns about flight disruptions. This could mean a surge in demand for holiday lets in the UK.

Stay Ahead of the Curve

While holiday lets are looking attractive right now, it’s important to understand the potential challenges. Before you dive in, take time to learn about the new tax rules and get advice from a professional. With careful planning and the right approach, holiday lets can still be a profitable investment.