Buying a Holiday Home in the UK vs Abroad

When looking into buying your first holiday let, you may be considering whether or not you want to purchase your property in the UK or invest in a holiday home abroad.

Where Should I Buy a Holiday Home?

One of the most important decisions for purchasing a holiday home is choosing the right location. Deciding on where to buy a holiday home can make all the difference for your holiday let - from generating bookings to maximising your rental income.

Before taking the plunge, you'll need to weigh up the pros and cons of buying a UK holiday let vs. abroad.

Benefits of Holiday Letting in the UK

There are plenty of advantages to buying a holiday home in the UK, from potential earnings to enjoying your own personal retreat. Owning a holiday home can be a great way to bolster your income, especially if you choose to work with a holiday let agency.

Brexit

Since leaving the EU, applying for a holiday let mortgage in the UK can be easier than purchasing a holiday home abroad. While there are stunning locations in Europe, it can be more complicated to buy a home if you are not an EU citizen.

When leaving the EU, the UK also left the EEA (European Economic Area). Members of the EEA are included in the EU single market, and have to be compliant with its rules and regulations. This makes buying a holiday home in the UK less complicated than abroad.

Since Brexit, the value of pound sterling has decreased since the referendum (10% down against the dollar and 10-15% down against the euro). Although a negative for those traveling abroad from the UK, it is a positive for the UK tourism economy.

Straightforward Travel

Investing in a UK holiday let means that you can easily travel to your property with less restrictions, such as potentially delayed flights, airport security, or waiting for luggage.

The convenience of owning a UK holiday home also means you can keep on top of essential maintenance work on your property. Alternatively, you could outsource holiday let maintenance jobs to help reduce your workload.

When buying a holiday home in the UK, you are also less likely to face hidden costs such as tourist tax and potential language barriers at certain European destinations.

Honeypot Locations

There are plenty of scenic places to buy a holiday home in the UK, such as the picturesque Lake District National Park, the dramatic highlands of Scotland and rugged coastlines of Cornwall, while urban destinations such as Liverpool and Bath are a popular choice for short-term lets.

Choosing from one of the best places to buy a UK holiday home can help you make the right decision for your second home investment.

If you are a land owner, you may also benefit from farm diversification.

Disadvantages of Holiday Letting in the UK

More Expensive

Starting a holiday let business in the UK can be a little more expensive than some properties found in Europe. A beautiful property in the south of France could cost up to 50% less than a UK property of a similar style.

This has put some property owners off, however, many believe that the benefits of owning a UK property outweigh the cons.

Local restrictions

Whether you own a second home in the Highlands or you're considering investing in a property to let in Scotland, then you will need to know about the short term accommodation licence scheme.

New holiday let owners in Scotland must hold a licence from the relevant authorities before they let out a property to guests. All short-term lets will need to be licensed by 1st July 2025.

Introduction of a new planning class for holiday lets in England, and a mandatory, nationwide registration scheme for short term lets in England will be announced later in 2024. Keep up to date with the latest regulations and legal requirements of holiday letting in the UK.

Unpredictable Weather

Although the seasons can be beautiful in the UK, the weather has a notorious habit of being unreliable and unpredictable.

The weather can have a tremendous impact on how much your guests enjoy a stay at your property. Poor weather can lead to limitations on your guests experience of the local area, meaning they could be less enticed to come back again.

Some UK properties rely heavily on a certain type of weather, particularly beach homes, to attract guests. This means that if a guest does not get the weather they were expecting, they could be less likely to stay again or leave a positive review.

Benefits of Holiday Letting Abroad

The Weather

One big advantage that overseas holiday lets have is the weather. Dependent on where your chosen property is, you are almost guaranteed predictable weather. A relief from the unpredictable weather conditions here in the UK.

More for your Money

Even with the drop in value of pound sterling, you may find that you can get slightly more for your money in certain areas overseas than in the UK. This is especially the case if you are looking in areas that aren’t necessarily in sought after locations.

Some of the more rural areas of France and Italy have been known to sell for a fraction of the cost for an average UK home.

The Culture

For many people, a holiday abroad is not just about enjoying the fabulous weather. It can be about a complete change of scenery, experiencing a different culture, sampling local delicacies and even finding a place you truly feel at home. 

Disadvantages of Holiday Letting Abroad

Language Barrier

Although your guests may enjoy the idea of experiencing a change in language when staying at your property, for you this may cause some problems.

For example, understanding holiday let mortgages and insurance can be complicated in your own native language. When taking on large amounts of important information in a foreign language, you may become extremely overwhelmed.

Managing from a Distance

Trying to manage a property from overseas can be a difficult task, especially when added to the issue of a language barrier.

Remotely managing your holiday home may involve more responsibilities than letting your property with a holiday let agent, particularly if any issues arise.

Low-Season Bookings

Unfortunately, your property abroad may struggle to entice people all-year-round. Only some of the few unique and highly sought after properties will achieve this.

With this in mind, your property will be either suited for winter or summer breaks. Properties by the Alps will cater more for the winter ski trip thrill-seekers, whereas coastal homes on the Mediterranean Coast will be ideal summer spots.

Think about how much income your property will generate over the year and whether or not it will cover your holiday let mortgage costs. Use our Holiday Let Income Calculator to receive data-driven earning estimations.

Types of Holiday Homes for Sale in the UK

From quaint holiday lodges to spacious detached houses, there are a selection of property types to suit your needs and budget. If you're thinking of investing in a holiday let in the UK, choose from bungalows, log cabins and park homes, to glamping pods and holiday chalets.

Why not have a look at the selection of UK holiday homes for sale?

Let your holiday home and earn

Buying a UK holiday home is a potentially lucrative investment, providing an opportunity to earn a consistent rental income. Sykes can do all the hard work to help make your venture a successful one, from changeovers and key handling to marketing your holiday let.

Existing owners with Sykes can download the Sykes Owner App for more tips and guidance on how to optimise your property and maximise its earning potential.