Investing in holiday home properties has become a popular choice for those looking to diversify their portfolios, while also securing a secondary income.
Northumberland, with its stunning landscapes, rich history and vibrant culture, stands out as an attractive option. Here, the team at Bradley Hall discusses why the region is ideal for holiday home investments and reveals the advantages that come with it.
Growing tourism demand
Northumberland’s flourishing tourism industry is a major reason for investing in holiday homes here. Known for its unspoiled natural beauty, the region is home to Northumberland National Park, the Northumberland Coast Area of Outstanding Natural Beauty (AONB) and historical sites like Hadrian’s Wall and Alnwick Castle. Alnwick Garden alone has attracted over seven million visitors worldwide.
In recent years, many holidaymakers have shifted from international travel to UK-based staycations, driven by changing travel habits post-COVID. Over half (53%) of UK adults chose a staycation this summer, boosting local economies and increasing demand in destinations like Northumberland. Its serene landscapes and outdoor activities make it an attractive location, ensuring a steady stream of visitors throughout the year, especially during school holidays and peak seasons.
Affordable property prices with high returns
Compared to other popular tourist regions like the Lake District or Cornwall, Northumberland offers relatively affordable property prices, making it a cost-effective entry point for those looking to invest in holiday homes.
Seahouses, a coastal village in the area, has recently surpassed Cornwall as the most profitable location for holiday home ownership.
Leading property specialist, Bradley Hall, frequently works with property investors and second homeowners across the county to find the ideal property for their investment portfolio.
Angus Todd, director at Bradley Hall Alnwick, commented: “We are seeing an increase in enquiries from those wishing to cash in on the popularity of Northumberland and purchase a holiday let as an investment for their future.
“There are some beautiful properties in our county that could make fantastic investment properties for those looking for a steady income stream.”
Flexible income stream
Owning a holiday home in Northumberland provides a flexible income stream due to the region’s year-round tourist appeal. Whether it’s a coastal getaway or a countryside retreat, investors can expect bookings across different seasons. Peak tourist seasons offer opportunities to increase rental prices, maximising earnings.
Platforms like Host & Stay have simplified the process of marketing holiday homes, making it easier to reach a global audience. Investors can manage their properties themselves or hire a property management company to handle operations, allowing them to generate passive income with minimal hands-on involvement.
Dual purpose – personal enjoyment and financial return
One of the most appealing aspects of holiday home investments is the dual purpose they serve. In addition to generating rental income, investors have the option to use the property for personal getaways.
Whether it’s a family vacation by the coast or an escape to explore the region’s rich history and culture, owning a holiday home in Northumberland offers the chance to enjoy one of the UK’s most beautiful regions while still earning income when rented out.
Tax benefits and financial incentives
Holiday home investments in Northumberland also come with potential tax advantages. Properties classified as “furnished holiday lets” (FHL) are subject to favourable tax rules compared to long-term rentals. Investors can claim capital allowances on furniture and equipment, benefit from Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) when selling, and offset mortgage interest payments against rental income.
These financial incentives further enhance the appeal of holiday home investments, making them a smart choice for those looking for both personal enjoyment and financial returns.
A market for outdoor enthusiasts and families
Northumberland is a magnet for outdoor enthusiasts and families, offering a wide range of outdoor activities and best-loved attractions, such as the Northumberland Coast Path, Kielder Water and Forest Park and dark sky reserves for stargazing.
This broad appeal ensures a steady flow of tourists throughout the year, reducing the risk of vacancies and offering opportunities for investors to attract various clientele. Whether catering to families, couples, or adventure-seekers, holiday homes in Northumberland are well-positioned to provide consistent returns.
For more information on available properties in Northumberland, visit www.bradleyhall.co.uk
