A recent study reveals the potential impact on popular holiday home regions in England and Wales following the government’s decision to abolish the furnished holiday lettings (FHL) regime.
Identifying Key Holiday Home Areas
Conducted by Howden Insurance, the study leverages data from the Office for National Statistics (ONS) to identify areas with the highest density of holiday homes relative to total residential properties. The Isles of Scilly lead the ranking as England and Wales’ top holiday home hotspot, with holiday lets comprising five percent of the area’s residential properties. South Hams and Gwynedd follow, highlighting a widespread appeal of holiday homes across both regions.
Regional Insights and Statistics
The study details that South Hams boasts 2,050 holiday homes out of 46,525 residential properties, marking a 4.4% ratio. Gwynedd comes close with 2,590 holiday homes, making up 4.1% of its dwellings. Further insights reveal North Norfolk and the Isle of Anglesey as other significant areas with 3.9% and 3.3% ratios, respectively. This data illustrates the prominent role holiday homes play in these regional economies and the potential disruption the abolition of the FHL regime could cause.
Implications of Abolishing FHL
The move to phase out the FHL regime could have profound effects on local economies reliant on tourism and holiday lettings. A spokesperson from Howden Insurance commented, “These insights highlight the popularity of holiday home ownership across England and Wales and identify the areas where current property owners would benefit from letting their home out this holiday season.” They further noted the growing interest in holiday home rentals, which provides diverse accommodation options for travelers and substantial income for homeowners.
The findings offer a crucial snapshot of the holiday home market, indicating areas that might experience significant changes once the FHL abolition takes effect. This could lead to shifts in how properties are marketed and potentially impact local tourism economies.
