A guide to holiday letting in South Devon
classic cottages | Est. 1977
The holiday letting industry has changed – attracting more investors and private homeowners to the sector and seeing an increased demand for UK staycations. As industry experts, Classic Cottages have put together an extensive guide to holiday letting in South Devon, drawing on years of industry experience, company data and economic influences.
The guide looks at:
Page 6 - 7
Holiday home income
Page 10 - 11
Area guides Understanding the draws of coastal breaks – South Devon
Page 12 - 19
Bigbury-on-Sea Brixham Dartmouth Salcombe
Page 12 - 13 Page 14 - 15 Page 16 - 17 Page 18 - 19
The finer details
Page 20 - 23
Property: Mintons, Shaldon
Investment and the market Recent circumstances have thrown a light on staycationing in a way that few could ever have predicted, introducing new families and new generations to the very best that Britain has to offer. This, combined with holiday home income increasing by 33% in Devon versus 2019, as well as the appealing opportunity to invest in an appreciating asset that you can use yourself, means holiday home ownership is more attractive than ever.
Holiday letting and the appeal of holidays in the south west For as long as we’ve been in business (over 45 years in fact) visitors have always found the experience of a UK staycation in our beautiful country uplifting, creating lasting memories that will act as a future draw, despite greater freedom to travel abroad. And this can certainly be said for Devon, drawing thousands of visitors to its beautiful countryside and shorelines. That’s good news for aspiring holiday home owners as travellers add an annual staycation to their holiday mix. It’s partly for this reason that South Devon saw its average holiday home income rise by 19% in 2021 versus 2019. We also saw the portfolio size increase in the county as a whole. In 2021 alone, the Devon property collection grew by 35% and there are no signs of this slowing, as we continue to bring on new properties in the area every week.
An introduction to Classic Cottages, Devon’s holiday letting specialists Using our knowledge of marketing over 1,200 of the best coastal and countryside cottages across the UK, with more than 250 of these being in the beautiful county of Devon, we have created a complete guide to holiday home ownership to help guide you through your journey to holiday letting.
Why invest in a holiday home?
If you buy a holiday let, one of the greatest benefits is the fact that it allows you to store capital in a longterm solution, whether you’re looking for a retirement opportunity, somewhere for the kids or simply a less risky investment. In short the benefits are:
On average holiday home earnings in Devon range between £17.5k for a 1-bedroom property to £41.8k for a 4-bedroom property.
Comparatively low risk investment Less volatile than stock markets An income generator Holidays at virtually no cost Attractive tax breaks Long-term capital appreciation A savvy lifestyle investment
Holiday home income depends on a number of factors; key considerations being:
Is it a good time to buy a holiday home?
Absolutely. Demand for staycations in Devon has risen dramatically in recent months – up by as much as 100% in some areas and the income has increased too. The average income for a holiday home in Devon has risen 33% since 2019. With the housing market remaining stable, investing in property in the south west is a safe bet. The interest in staycations continues to be strong too, with overseas travel becoming less straightforward due to Brexit and Coronavirus as well as environmental impacts, with a greater consciousness of climate change. There are also smaller factors influencing the staycation market, including the rise of pet ownership in the UK. The number of pet owners in the UK rose 18% in 2021 versus the previous year, so a dog friendly holiday in the UK is a consideration for a greater proportion of the UK!
Other factors that can influence desirability include: Proximity to the coast Closeness to a pub Good outdoor space Private parking
So, what returns could I expect? A very good question. Although we can give an idea of income based on our existing portfolio, we appreciate that each property is unique. Which is why we always suggest a visit from our Property Manager, a local expert in the area. They will be able to advise on the spot and will provide a well thought through income estimate with no obligation, whatever stage of the holiday letting journey you’re at. Before we get to this stage though, here are just a few key aspects to consider for your holiday let.
Features that pay Average income rise for holiday lets with the following features:
Holiday home income Top locations for income South Devon Focusing on South Devon’s hot-spots, we’ve put together a table of top places to buy a 1, 2, 3, 4 or 5-bed holiday home, and examples of income:
Average property prices in South Devon’s holiday home hotspots To help you identify where you could afford to buy, we’ve created the following table with average property prices in and around some of South Devon’s favourite coastal holiday destinations: South Devon*
Factors influencing income
Bigbury On Sea
Factors influencing income
luxury, water-front, with parking
central with parking
rural, luxury, with parking
central, no parking
*Figures based on average prices of properties sold in and close to each holiday hotspot using data from Rightmove and Home.co.uk in 2021.
Average earning by property size
Factors influencing income
central, no parking, luxury
central with sea views and parking
central with parking
outskirts with parking
Factors influencing income
Factors influencing income
outskirts with parking
To help you assess what income you might expect, we’ve put together average holiday home earnings by property size and type in Devon: 1-bedroom holiday homes
1-bedroom glamping sites
2-bedroom holiday homes
2-bedroom glamping sites
Demand trends for holidays in South Devon:
Accommodation type; which is right for you?
Demand for coastal holidays in Devon is on the rise. Comparing 2019 figures (the last full year for bookings) to those of 2021, Classic Cottages has seen record search traffic, up 98% for Devon as a whole.
Clearly, location is a big factor… But what type of holiday property is right for you?
When looking at traffic volumes at town level in South Devon, we’ve seen significant increases here too. Looking at the top three by area: South Devon: Bigbury-on-Sea: Salcombe: Dartmouth:
+100% +67% +48%
Much comes down to personal circumstances and preferences. Usually, you’ll have a pretty good feel for where you want your holiday home to be, but other details such as style and character versus practicality are worth thinking about too. If you’re making a lifestyle investment in a property that you’re buying because you love it and aren’t reliant on it for an income, practical considerations may be less critical. In these cases, remote properties may be just what you’re looking for; somewhere off the beaten track. They’ll have their niche, without doubt, but they might not command the high prices or occupancy rates that properties in locations close to the coast and beaches could – unless you add wowfactor. For others, income may be critical, so buying the right property in the right location could be very important indeed. Whatever your circumstances, our experienced Devon property team can help guide you, assessing your budgets, goals, personal preferences and investment priorities to help draw up a short-list of property types that fit your brief. We’re here to simplify the process using our experience, knowledge and network of contacts to smooth your journey to holiday home ownership. We’re just a call away. So, what should you look for in a property?
Accommodation type Holiday cottage or apartment?
What about developments?
There’s no doubt that both have their merits. So, to help you decide what might be best for you, we’ve looked at the benefits of both.
Developments tend to have one main advantage over individual holiday homes, and that is location. Developments are typically situated in stunning locations with outstanding views. And they have to be, quite simply because they have to compete in a very different way to the like of grand houses or cute cottages.
Benefits of cottages and detached properties vs apartments, at a glance: - Can be more characterful providing ‘kerb’ appeal online - Greater potential for enhanced outdoors spaces - Greater freedom with private grounds – appealing to dog owners - Less limitations on parking - Freehold purchase rather than shared spaces and annual fees - Greater flexibility for property makeovers - Less chance of intrusive developments impacting views/appeal
Benefits of developments versus cottages at a glance: -
Low maintenance Built for purpose Shared facilities Located in or near popular holiday destinations Developer deals to be done Potential for positive capital appreciation
What to look for in established developments: Key things to look for when buying a cottage or detached holiday property: - Is it close to a beach? - Are there dog-friendly beaches and walks nearby? - Is there a pub within walking distance? - Does the property have privacy and a garden/ grounds that would appeal to guests? - Does the property have private parking? - Is the property suited to pet owners? - Are there other local amenities nearby, such as a lido, village shop? - Does the property have potential for capital growth? - Is the property ready to rent or does it need work? - Does the property have potential to be turned from the humdrum into an uber-cool, ultra desirable holiday home escape? - Are there attractions nearby that will appeal to visitors and their families? Whatever your personal preference, be that a period property, a doer-upper, or a ready to rent chic contemporary property, our team of experts can guide you on every aspect of the purchasing and makeover process. We’ll give you all you need to make the right decision both for you and for your pocket, helping to maximise income, while creating a stand-out property for you and your guests to enjoy.
- Does the apartment have an established income? - Is the apartment in need of a makeover? - Is refurbishment permissible under the terms of the purchase? - Does the apartment have NHBC certificates giving additional protection against structural faults? - Is the development architecturally appealing?
Why buy a new development? - New developments tend to be situated in locations with stunning views and often close to a beach - Apartments in new developments tend to be low maintenance - New developments typically come with parking - High specification facilities often include heated pools, gyms, hot tubs - If you purchase more than one apartment or property, developers may be open to reducing the asking price, and to including furniture as part of the deal - New developments often have apartments with stunning floor-to-ceiling bi-folds, or penthouses with furnished balconies, private hot tubs and exceptional ocean views
Could glamping be a viable alternative?
Things to consider:
If you want to make the most of land that you own, glamping is a good option to consider. From yurts and safari tents to cabins and shepherd huts, the range of glamping options is vast. Planning will influence what you can put in, but if you get the process right, you could soon turn an unused corner of a field into a profitable business.
- Target your market well, creating niche accommodation rather than one size fits all approach - If you are set on appealing to a cross-over market, consider a hot tub. You can price a two-bedroom property at a reduced couples’ rate to keep your pricing competitive - Most bookings will be short-breaks, which means that marketed well, you can get multiple bookings per week, maximising income
Benefits of glamping at a glance: - Strong return on investment - Popular for short breaks, increasing average holiday value - Low maintenance
What do you need to consider before going down the glamping route? - Does your glamping offer reflect the needs of your target customer? - Are you happy to focus on the peak season only, in which case safari tents, canvas options or yurts could be for you - If you want a year-round income, consider solid structures such as cabins - Are you looking for an off-the-shelf purchase? - Have you considered the benefits of a bespoke build so that you stand out? - Does your glamping offer deliver tranquillity and unspoiled views? - Does your glamping offer stick to a theme?
What will it cost? - Most luxury glamping units will range between £30k-120k - Don’t forget to allow for the cost of putting in services and electrics - Have you budgeted for kitchens, a boiler and bathroom?
Canvas or solid structure? If you opt for canvas, your season will typically last from March to November. By comparison, a solid structure, such as a cabin, offers greater flexibility through the use of wood burners, under floor heating and en-suite facilities. That helps make the off-peak season just as busy as the peak periods, and appeals to a premium customer willing to pay that bit extra for those all-important creature comforts.
What can you expect to earn? Based on the right accommodation in the right setting, with the right services and facilities, you can typically expect to achieve a return on investment within two and a half years. Per night rates will depend, but can range from £60 in off-peak to £250 in high peak, depending on its facilities and location.
Planning and farm diversification – from field to finish: One of the fastest growing areas and opportunities for farmers and landowners is diversification into glamping, repurposing pockets of land to create truly stunning locations for yurts, bespoke cabins, tree houses, lodges, shepherd’s huts or even underground hobbit houses.
Key considerations: - Sustainability is key to planning approval - Plans will need to be laid out in accordance with local policy - Advice from a planning consultant or a surveyor will save a lot of pain in the long-run - Start small, but plan big - Put infrastructure in place for future expansion from the start Having worked with glamping businesses across Devon, we have many years’ experience of helping owners turn their dreams into reality. Our Field to Finish solution gives owners access to the unrivalled experience of our planning consultant, offering a complete service ranging from site design to negotiation with the planning department. That’s the Classic way. Just ask for details.
Area guides - Understanding the draws of coastal breaks South Devon - Bigbury-on-Sea
If you’re not overly familiar with Devon, it’s important to understand the draws that this amazing county has for visitors looking to stay on holiday. To help you whittle down a shortlist of places to consider, we’ve put together area guides on some of the county’s most popular coastal locations, giving you the inside line on just why each appeals to buyers and visitors.
Bigbury-on-Sea - South Devon Nestled in an Area of Outstanding Natural Beauty, Bigbury-on-Sea is a small, remote village framed by a backdrop of unspoiled countryside and rugged cliffs, with extensive views overlooking south Devon’s largest sandy beach, Bigbury Bay. Just 250 metres offshore lies the iconic Burgh Island, made famous by the detective novelist Agatha Christie. Historically a sleepy fishing village with just a few fishermen’s cottages, Bigbury-on-Sea is now a highly desirable holiday destination which teems with tourism year-on-year. In fact, 60% of the properties in Bigbury-on-Sea are now either holiday lets or second homes. With such a superb seaside location on your doorstep, it’s not difficult to see why the village faces a growing demand from holidaymakers for accommodation in one of South Devon’s most idyllic holiday destinations. In fact, searches for properties in Bigbury-on Sea have been up 135% according to Rightmove in 2021.
Local beaches Situated between the prestigious Blue Flag beaches of Bantham and Challaborough, Bigbury is a Marine Conservation Society recommended beach. Here, families can look forward to clean and safe waters that are perfect for surfing, kayaking, kitesurfing and stand up paddle boarding. Discovery Surf School at Bigbury-on-Sea has been helping surfers of all skills and ages for 18 years, and is well worth a visit. Just past Bantham beach is South Milton Sands, a National Trust owned beach which is renowned for seal and dolphin spotting. Directly offshore, and accessible on foot via a causeway at low tide, is the glamorous Burgh Island, a south Devon landmark that’s home to thousands of seabirds. When the tide is high, holidaymakers can arrive through the surf via the world’s only Hydraulic Sea Tractor. The Sea Tractor is a popular tourist attraction, steeped in local history. It was pioneered by Robert Jackson CBE in 1969.
Where to eat We all know the West Country is packed with great pubs. One of which, is the quaint Pilchard Inn which sits in a remarkable setting on the edge of Burgh Island. Dating back to 1336, it’s one of England’s oldest pubs, where salty fishermen, wreckers and smugglers drank in days gone by. Today, the dog-friendly inn welcomes guests from all walks, serving fine ales and snacks. Close by at Bigbury-on-Sea, and perfect for a hearty meal, is the Venus Café. Renowned for its legendary, locally sourced burgers, it brings a whole new meaning to surf and turf.
Dog-friendly As with most UK beaches, dogs are permitted on the sandy shores from October to the end of May. But if you travel to the smaller beach just west of the causeway, you can enjoy time with your dogs all year round.
Activities for kids and families There’s no doubt about it, Bigbury-on-Sea is family friendly to the core and a perfect place to enjoy relaxing holidays with children of all ages. Benefitting from safe and shallow waters for the little ones, and a good break off-shore for budding surfers, there is something for everyone, which means that you’ll never tire of a trip to the beach. Lifeguards are on duty from May to September. For active families looking to adventure out and explore the local area, there’s a great selection of walking trails nearby which take you to, among other places, the pretty village of Ringmore. Our little secret is the stunning Ayrmer Cove, which has amazing rockpools at low tide, sat beneath distorted cliffs and rocks that jut out like knives. There’s even a secret slit in the cliff, through which you can access Wyscombe beach. With direct access to the South West Coast Path, some of south Devon’s most prestigious towns and beaches are all just a scenic walk away.
South Devon - Brixham
Lying at heart of England’s Seafood Coast, the pretty town of Brixham and its bustling harbourside is home to one of the largest fishing fleets in the UK. Landing over 40 species of fish and shellfish, the town’s worldfamous Fish Market is central to the buzz and vibrancy of life by the sea. With its pretty, pastel-hued cottages lining the harbour, and a great range of bars and restaurants to try along the marina, it’s not just fishermen that the town continues to draw in. Thousands of tourists travel to Brixham to experience the eclectic delights of this pretty corner of the English Riviera all year round, which is why it’s the sixth most sought-after location for second home investors in the UK, based on Google searches. Opportunities to kayak, wild sea swim and paddleboard provide an additional draw to this town of quaint cottages, bustling bars, sea shanties, trawler races, a replica of The Golden Hind, and the awesome annual pirate festival – argghh! While Brixham has always revolved around the water, the town’s community spirit and quirky character continues to enchant both traditional holidaymakers and visitors looking for a touch of luxury. Here’s a roundup of the top spots in Brixham.
Things to do Brixham’s Fishcombe Cove, Bradley Beach, Churston Cove, Shoalstone Beach, Elberry Cove, Breakwater Beach and St Mary’s Bay are just few of the pebble, shingle, and sandy beaches nearby, offering plenty of choice for family-friendly day trips. For those looking for something a little different, the unique saltwater swimming pool on Brixham’s sea front is worth a try. The Shoalstone Outdoor Pool is one of only a handful left in the country. For a breath of fresh Devonshire air, Berry Head National Nature Reserve is just a scenic walk away from the town centre. Cherished as a designated heritage site, the Special Area of Conservation is known for its stunning panoramic views over the Riviera and out to sea. For a coastal trip, hop on the Dartmouth Passenger Ferry which is a great way to get to Dartmouth’s annual Royal Regatta, its music festival and gallery open days without the hassle of having to find a place to park.
Food and drink With much of the finest seafood in South Devon coming directly from Brixham’s Fish Market, it’s hardly surprising that Brixham is spoilt for choice when it comes to bars, pubs, and restaurants. Must visits include Mitch Tonks’ Rockfish, the Poopdeck, and Shoals – the café on the Lido, as well as David’s Fish and Chips on Bolton Street, one of the UK’s top chippies! Should you choose to dine in, the town has an excellent range of independent fishmongers, butchers, and greengrocers too.
Dog-friendly Whether it’s beach or bistro, there are plenty of places that cater for dogs in Brixham. The Breakwater Bistro, Guardhouse Café and The Berryhead Hotel are just a few of the best places to try (offering the tastiest dog treats too). Best of all is Fishcombe Cove at the northern end of Brixham. Whilst it’s popular with owners of small yachts and launches, the secluded pet-friendly cove provides the perfect place to roam with your faithful friend all year round.
South Devon - Dartmouth
Part of the South Devon Area of Outstanding Natural Beauty, Dartmouth is set on the steep banks of the Dart Valley. With glorious views overlooking the River Dart, the Dart Estuary and the picturesque town of Kingswear, life in this historic town revolves around the water, be that yachting, kayaking, canoeing, paddle boarding or swimming. Widely acknowledged as one of the prettiest coastal towns in the UK, Dartmouth has a reputation as an upmarket South Devon holiday destination. With over 47 million views on TikTok in the first half of 2021 alone, Dartmouth leads the way for coastal posts on social media. It’s also seen a 117% rise in buyer searches compared to 2019, according to Rightmove. Blessed with beaches, castles, historic houses, vibrant markets and events year-round, it’s easy to see why.
Things to do The delightful Dartmouth Steam Railway is a huge attraction for visiting guests. The seven-mile railway track follows the coast, offering spectacular scenery along the English Riviera Geopark coastline, passing Goodrington Sands, the Greenway Estate and terminating at the vintage Kingswear station.
For a fine dining experience, try out the Angel where former ‘MasterChef the Professionals’ finalist Elly Wentworth heads up a multi award-winning team. Alternatively, pay a visit to The Seahorse on the embankment, an upmarket seafood bistro owned by renowned chef Mitch Tonks, which has been listed in The Sunday Times’ Top 100 UK Restaurants. For an exceptional fish and chips experience, try Rockfish, also owned by Chef Tonks. For the ultimate selection of the town’s finest produce and chefs, the annual Dartmouth Food Festival in October is a must. Described by The Telegraph as a “heady mix of celebrity chefs, parties, food markets, tasting shacks and demonstrations”, the festival sees over 20,000 people flock to the town for gastronomy of the highest order. Best of all, it’s completely free to enter.
Dog-friendly One of the best things about Dartmouth is that it’s really pet-friendly – even aboard the South Devon Railway or on passenger ferries. With National Trust properties, gardens and year-round dog-friendly beaches to enjoy, bringing your dog is a joy.
From Dartmouth you can take the foot ferry to Kingswear, or a river boat cruise to the National Trust owned Greenway House; Agatha Christie’s former holiday home. Hop on the passenger ferry from the South Embankment, or take the South West Coast Path and you can visit the 14th century Dartmouth Castle. Steeped in history, you can enjoy sweeping views out to sea and discover how a vast sea chain, hoisted between Kingswear Castle and Dartmouth Castle, once protected the town from unwanted invaders.
For a scenic sandy stroll, we’d recommend Castle Cove, Sugary Cove and Slapton Sands, which all welcome dogs year-round. If you’d like to treat your four-legged friend to a treat of their own, try Café Alf Resco or The Galleon Bar & Harbour Bar. And for hot dogs, why not treat your four-legged friend to a tasty pet safe frozen dessert at Dartmouth Ice Cream Company, while you tuck into something truly delicious too.
Rich in history too is Britannia Naval College - the only one in the country - and the 1920s Coleton Fishacre house and gardens, which is just a short drive from Kingswear.
Activities for the family Located within easy reach of thrilling rides and slides at Woodlands Family Theme Park, Dartmouth is well placed for days out with the kids. For the younger ones, Pennywell Farm offers a great petting experience, even pig racing. And for something really wild, there’s always Paignton Zoo.
For beach lovers, Sugary Cove (as quaint and sweet as it sounds) and Compass Cove are just a walk away from the centre of town. Slightly further afield is the fantastic Blue Flag beach of Blackpool Sands, frequently cited as one of the top ten beaches in the country. Strete Gate Beach and Slapton Sands are also well worth a visit.
Food and drink Dartmouth is renowned for its dining and sea food, much of which is landed locally. Start your day with delicious morning coffees and pastries at one of the many cafés throughout the town, or treat yourself to breakfast at Café Alf Resco, something of an institution among those in the know. For afternoon cream teas try The Singing Kettle, and if you have any room left, move on to one of the town’s many restaurants for dinner.
Closer to home, kids of all ages can enjoy Dartmouth’s waterside crabbing along the embankment, and Dartmouth Castle Ferry Steps. Coronation Park offers playing fields, a children’s play park, and tennis courts. However, what families and visitors of all ages love most about Dartmouth is its wide variety of events. There’s the National Agatha Christie Festival, Dartmouth Music Festival, monthly Farmers Markets, and the Dartmouth Royal Regatta which takes place on or around August Bank Holiday, just to name a few. The 170-year-old Regatta event includes gig racing, yacht classes, live music, fireworks and rowing competitions, attracting tens of thousands of visitors every year, many of which stay in holiday homes in and around Dartmouth.
South Devon - Salcombe
At number five on the list of most beautiful holiday escapes in the UK, it’s not hard to see why Salcombe attracts thousands of visitors every year. In fact, this picture-perfect town on the south coast of Devon is so popular that visitors just have to have a piece of it, which is why 57% of all households in Salcombe are second homes. It’s also why the town repeatedly comes out top in searches for second homes across the UK. According to Rightmove, buyer searches have increased 112% since 2019. Drawing in the wealthy and the famous, including Kate Bush and Rod Stewart, thousands flock to this yachty waterfront retreat every year. Enticed by its golden sands, bustling streets, one-of-a-kind eateries, independent boutique shops and its range of amazing water sports, this chic South Hams town is a magnet for well-heeled visitors. That’s good news for prospective holiday home owners looking to buy in the local area.
Local beaches Perhaps the biggest draw is Salcombe’s golden sands and five beautiful beaches: South Sands, North Sands, East Portlemouth, Mill Bay and Sunny Cove. The Kingsbridge-Salcombe estuary, on which they sit, provides a paradise for water sports; the crystal-clear waters are the perfect playground for paddle boarding, rapid rib rides, dinghy sailing, estuary cruises, yachting and much more besides. Conveniently, the town has two foot ferry services taking explorers to East Portlemouth or the Blue Flag award-winning South Sands beach. North Sands, South Sands and East Portlemouth each have public conveniences, parking and food shops. That means you can spend the whole day basking in the delights of the warm waters or sunning yourself on the sand. But that’s not all. Hope Cove, Soar Mill Cove and South Milton Sands are all nearby too. With miles of outstanding coastline to explore along the South Devon Area of Outstanding Natural Beauty, it’s no wonder Salcombe remains a firm favourite for visitors year after year.
Where to eat Making the most of its coastal location, Salcombe boasts an incredible collection of restaurants, pubs, cafes and foodie experiences which celebrate the town’s fresh seafood and other delights. In fact, there are so many places to choose from that Salcombe has its own Food and Drink Trail. Covering Salcombe and the wider South Hams area, the self-guided trail celebrates a rich range of culinary experiences with over 20 sampling and dining experiences. The trail’s destinations include the Crab Shed where you can taste mouth-watering locally caught crab, and Salcombe Dairy Ice Cream where you can indulge in sorbets, ice creams and chocolate. If outdoor eating is for you The Winking Prawn is a fantastic beach café right by the waterfront with beautiful views overlooking North Sands. From local seafood to sizzling ribs on the barbecue, this is an experience not to be missed. And for those looking for that traditional pub experience, you’ll find yourself spoilt for choice. The Victoria Inn, Ferry Inn and Boatswains at the Kings Arms are all great options; each perfect for a pint and great pub grub. Did we mention Salcombe Gin? Its distillery can be found just off Batson Creek.
Dog-friendly With its sandy coastline, scenic walking routes and the South West Coast Path close by, Salcombe is perfect for guests and their pets. North Sands is a favourite haunt for dog walkers as it’s dog-friendly year-round. Across the water, the quiet and secluded East Portlemouth beach also welcomes dogs throughout the year. For dog walkers keen to seek out impressive views, Snape’s Point is a must. Owned by the National Trust, this headland offers outstanding panoramic views of Salcombe and the surrounding area.
Activities for kids and families From surfing to sea kayaking and e-biking, Salcombe has it all. Add to that live music and events year-round, including Salcombe Live, the Annual Regatta and the Salcombe Crab Fest, and there’s always a good reason to visit this bustling coastal town. It also happens to be a 30-minute drive away from Woodlands Family Theme Park, packed with popular water rides, indoor and outdoor play zones, as well as an amazing toboggan ride.
The finer details What do you need to know about owning a holiday property, before you buy? Buying a holiday home as an investment has worked for many thousands of holiday home owners, but what do you need to know about running one successfully? That’s where our handy guide covering everything from tax planning through to maintenance comes in.
Tax planning to make the most of your holiday home: What do you need to know? Furnished Holiday Lettings occupy a special niche in the tax world, conferring certain benefits and allowances that are normally only available to trading businesses. In order to benefit from these, your property will need to: - be let on a commercial basis with a view to making a profit; a business plan encompassing profit and loss or cash-flow projections, will help to satisfy this requirement - be furnished appropriate to its size - be available to be booked for at least 210 days a year (30 weeks) - be let commercially to the public for at least 105 days (15 weeks) - not be occupied by the same person for more than 31 days and have no more than 155 days of such ‘longer term’ occupation Once a property acquires FHL status it will retain this even if it fails to meet the occupation conditions for two consecutive tax years. To continue to be eligible the property will need to meet the occupation conditions once every three years at a minimum.
Tax breaks* With these conditions fulfilled you will be able to benefit from: - Capital allowances on fixtures, furniture, fittings and equipment will qualify for Annual Investment Allowance - Capital Gains Tax relief if you sell your property, including Entrepreneurs’ Relief, allowing the taxable gain to be charged at the reduced rate of 10% - Roll-over relief – where specific chargeable gains can be deferred if new trading assets are acquired - Hold-over relief – if the property is gifted, the capital gain can be frozen until the recipient sells - Proportion of profits – if operated by a husband and wife partnership, the profit can be allocated in any proportion, irrespective of actual shares
- Pensions savings – profits from running an FHL business are classified as ‘relevant earnings’ allowing owners to make a bigger contribution to their pension – known as tax advantaged pension savings - Mortgage interest tax relief - you do not need to pay tax on mortgage payments for holiday lets – holiday home owners pay less tax on their income than residential landlords
What expenses can I claim? To be considered as a deductible, an expense must: - be incurred ‘wholly and exclusively’ for the purposes of the FHL business - not be ‘capital’ in nature. Capital expenses are usually one-off incurred in the original purchase, construction, or improvement of a property. Some expenditure on plant and other equipment may qualify for ‘Capital Allowances’ As an owner of a FHL, you will need to complete a tax return. Given that tax laws do change from time to time, we would always advise that holiday home owners seek the advice of a qualified, professional accountant to ensure tax efficiency. * Fuller details on tax can be found on the Classic Cottages website. Tax information accurate as of August 2021.
Short-breaks versus week only – what you need to know With lots of holidaymakers preferring to go away for a few nights, it is a market not to be missed. So, it’s always a good idea to offer guests this option, both to benefit guests and yourselves. The rentals for short breaks are not charged as pro rata, rather we tend to charge 60% of the weekly cost for two nights, 70% of the weekly cost for three nights, 75% of the weekly cost for 4 nights, 80% for 5 nights and 90% for 6 nights. This means there is great potential to increase your income, especially in the quieter shoulder months.
Things to consider: - If you have a housekeeper that can only handle changeovers on limited days, with Classic Cottages, you can arrange bookings to match - If you are struggling to book a peak week due to a cancellation, a short-break could quickly fill that
Property management Holiday homes are dear to us all, and whether you’ve inherited a second home, bought your dream cottage, or you’re looking to buy a property as an investment with perks, one thing that you’ll need to consider is how to manage your property. Even if you live locally, being bound by the cleans and changeovers could become an unwelcome burden. You may have someone in mind - a trusted friend or a local cleaning service that you’ve heard of or used before. Alternatively, you may be relieved to hear that Classic Cottages can take all the stress away with our managed services offering. Regardless of which path you choose you’ll need to: - find a housekeeper/gardener/window cleaner - organise weekly waste collection - organise linen cleaning and collection - arrange Compliance Certification - have a plan for resolving issues during a booking - have contractors ready to handle issues when guests are in situ on your behalf - have a second emergency key safe in place for use by contractors
Not got time to manage your holiday home? We can help For many time-poor owners, holiday homes are for enjoyment. That’s why we provide a complete managed service for free, all to make your life easy. That includes a 24/7 emergency line, so you don’t have to worry every time an issue arises. We’ll just fix the problem and let you know once it’s been sorted, which is good news for your guests, and for you. You’ll be kept in the loop on the owner portal all the way, and any invoices for works undertaken by contractors will be charged at cost. That’s holiday home ownership as it should be - without the hassle. The choice of how you manage your holiday home is completely down to you of course. Whatever path you choose, it’s good to know that there are simple solutions are out there, helping you to put your feet up and relax without constantly worrying about ‘what might happen’.
Property Insurance – your at a glance guide to getting the right cover: If you own a holiday home that you intend to rent out to paying guests on a short-term rental basis, you’ll need holiday home/holiday letting insurance. That’s because standard home insurance won’t cover you sufficiently. So, what do you need to know about getting the right holiday home insurance? The first thing to understand is that, just with ordinary home insurance, you will need both buildings cover and contents cover.
Injury protection Next, your insurance should cover you for public liability. That ensures that if a guest is injured while staying in your property, legal fees associated with claims are covered. Legal expenses cover should also be in place to defend your legal rights. Your policy should also give you sufficient employer’s liability insurance. That protects you from compensation claims should a cleaner or gardener working for you, for example, suffer an injury or become ill during the course of their work for you.
Damage or loss Building cover insures the structure of your property against damage caused by flooding, storms, and fire, and also protects permanent fixtures such as light fittings or built in cupboards. If you have a mortgage on your holiday home, your lender will most likely insist on building insurance, but even if that’s not the case, you’ll need sufficient cover to protect your property against any possible damage that may occur. Contents insurance covers furniture and any valuable possessions kept in your holiday home, such as sporting equipment, flatscreen TVs, or sound systems. Although not mandatory, it is advised you have some level of cover for contents. Specialist holiday letting/holiday home insurance also gives you extra protection covering accidental damage, theft, lost keys and so on. That’s important, because accidents can happen, so for peace of mind having good insurance cover is advised.
Loss of income Importantly, your insurance will need to cover you for loss of income. That’s key because if your property were to be damaged in a fire, flood or storm, you may have to cancel bookings. That could mean an extended period of lost bookings, particularly should your property require major rebuilding works over a period of many months or even a year. And should your property have an extended period where the property is unoccupied, you’ll need to ensure that your property is suitably covered for that likelihood too. Paying close attention to policy conditions in this respect is important, such as draining down storage heaters after 48 hours of unoccupancy and turning the water off at the mains.
If your property has a swimming pool, expensive outdoor pizza ovens, barbecues, heaters or hot tubs, you will need to notify your insurers to make sure that these items are properly covered. In this respect, sufficient cover for items kept outside needs to be factored in. It is also a good idea to read the small print to make sure you are covered for unforeseen damages. It is highly unlikely you will need it, but always best to be prepared for every scenario.
Policy T&Cs Other things to be aware of include checking whether your policy requires security measures to be in place, such as an alarm. Some policies will give you a discount if an alarm system is fitted. Some policies may also offer you optional home emergency cover, which could prove handy for boiler, heating, plumbing or electrical emergencies. Based on these broad guidelines, and a careful review of the policy terms and conditions, you should be able to get a policy that is well suited for your needs, giving you peace of mind that, in the event of a claim, you’ll be appropriately covered.
Which insurers should I consider? We recommend three insurance providers including Boshers, Schofields and Leisuredays. As with any insurance cover, it’s always good to shop around to get the best policy for your individual circumstances, as well as the most competitive quote.
Real stories The Linney:
“Exceptional company - cannot rate you highly enough. Outstanding service as an owner and love the personal touch. Thank you to everyone on the team for their hard work - I do appreciate it.”
“There is real value to us as owners knowing Classic is promoting our property and that their team is there with support and advice on occasions things go wrong - the reassurance and practical benefit shouldn’t be under-estimated.”
classic cottages Finding exceptional homes that make great holidays.
Sapphire House Hayle Business Park Cornwall TR27 5JR
1 Kingswood Court Long Meadow South Brent Devon TQ10 9YS
21 High Street Moreton-in-Marsh Gloucestershire GL56 0BJ
01326 555 555
01608 690 790 01364 370 011
Chenoweths Business Park Ruan High Lanes, Truro Cornwall TR2 5JT
29 South Street Bridport Dorset DT6 3NR
01872 580 480
01308 900 115
Isle of Wight Office
High Street Seaview Isle of Wight PO34 5ES
83 High St Battle Sussex TN33 0AQ
01983 617 322
01424 617 700
01326 555 500 email@example.com