According to a survey by Sykes Holiday Cottages, second homeowners have pointed to growing cost pressures, changing tax rules and council tax surcharges as motivating factors for letting.
Over half – 56% – of second homeowners are considering short-term holiday letting, with 39% thinking about long-term rental and 20% considering selling.
Approximately 52% said they keep second homes for personal or family use, with 9% using them during work travel and 8% holding them for future retirement.
However, many stand empty for much of the year, which Sykes Holiday Cottages said is a missed opportunity.
The firm estimates that there are around 280,000 second homes in England not regularly let out on a commercial basis.
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Assuming this number, if these properties were regularly available to holidaymakers, this could generate around £10.5bn per year in local tourism spend.
Letting to holidaymakers could generate an average annual gross income of £24,700, Sykes Holiday Cottages said.
Ben Spier, head of policy and regulation at Sykes Holiday Cottages, said: “This research lays bare the untapped potential of the country’s second homes. With many properties sitting empty for most of the year, there’s a real opportunity to turn these underused homes into valuable assets for local communities – using them to support tourism spend and, therefore, local jobs.
“We understand the concerns around housing availability in high-demand areas, and policy changes rightly aim to prioritise local needs over second homeowners. However, holiday letting can offer another way of using them to contribute to communities – it’s putting otherwise empty properties to good use to benefit local jobs, services and businesses in local areas that depend on tourism year round.
“Holiday let owners are undeniably also facing growing pressures and tax rules, but with strong appetite for domestic breaks, the market continues to offer attractive returns. At Sykes, we’ve seen a rise in second homeowners [getting] in touch to understand how they can make their unused second homes work better for them, which is something we believe will continue as people look for sustainable, community-friendly ways to generate an income.”
