Is now the right time to invest in a short-term let?

January 28, 2021

With lockdown restrictions in place and any easing of them a “long, long, long way off” according to Health Secretary Matt Hancock, it’s a pretty painful time right now for the UK short-term lets sector. However, this is a market that has thrived in recent years and is packed with potential for the future. So, is now the right time to invest in a short-term let?

“When 2021’s lockdown restrictions ease, we’re likely to see a significant release of pent-up demand for holidays, and particularly holidays in the UK. As such, investing in a short-term let property could be an excellent way to capitalise on that demand.”

Dale Anderson, Managing Director, Fabrik Invest

According to research by The Cumberland building society, 71% of people are intending to plan a holiday in the UK in 2021. Fears over ending up stranded overseas (cited by 68% of those The Cumberland surveyed) and uncertainty around COVID-19 (62%) were the key drivers behind this British staycation boom. Concerns around quarantine measures and having to self-isolate upon arrival at their destination were also noted as pushing 2021’s holidaymakers towards UK staycations. 

What, then, should investors look for in a short-term let? As with any other type of property investment, location is key. For city apartments, that means a centrally located property that makes the perfect base for exploring. At The Roscoe in Liverpool, for example, the 82 beautifully presented one- and two-bedroom apartments are located in the heart of the city centre, within walking distance of every amenity. For holidaymakers, being able to walk to a wide range of shops, restaurants, bars, cultural venues and other points of interest is essential. 

Investors who are buying off-plan also need to consider the timescale of their purchase. Is construction already underway? When is completion due and does the property’s timeline account for the impact of current and potential future lockdown restrictions? The short-term let market may be effectively paused right now, but these considerations are essential for those looking to capitalise on demand for holiday properties later in 2021.

“Timing is everything when it comes to property investment, both in terms of yields and of capital growth. This has been especially true during the rush to beat the stamp duty holiday deadline of 31 March 2021. And this pressure to time things right applies just as much to short-term lets as it does to investing in longer-term rental properties.

“Is now the right time to invest in a short-term let? It certainly could be. For the right property, in the right location, now could be the ideal time for investors to take advantage of the pent-up demand that is building for this kind of rental property.”

Dale Anderson, Managing Director, Fabrik Invest

For further details, why not get in touch with the Fabrik Invest team? You can call us on 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com.

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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