Single mum sets up 'side hustles' to combat cost of living crisis
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A quarter of Britons are considering becoming holiday let landlords to earn extra income from the continued popularity of UK staycations, new research has revealed. Experts from Together, a specialist holiday let mortgage lender, suggest that the demand for British-based holidays is set to continue through the rest of the year, because of current economic instability and the pressure on household finance.
Kay Warner, owner of The Burrow Escape spoke exclusively with Express.co.uk about her renovated barn conversion in the village of Branston. By renovating this space, Kay has been able to make extra income as well as spending more time with her son, reducing child care fees.
She explained that she had always dreamt of letting out her space but it wasn’t until she got pregnant with her son that she knew she could make her dream a reality. Kay realised that she wouldn’t be able to go back to her job full time and pay for child care costs so The Burrow allowed her to work part-time and earn just as much.
She said: “The Burrow helps me earn money without having to go to work and pay child care costs which are getting more and more. It’s a barn conversion – it’s next door to my house but it’s part of the same property.”
The Burrow has been open since April, however before this, Kay and her husband spent time and energy renovating it, making it perfect for guests.
“It’s doing quite well, it’s great actually,” she expressed.
When asked about the extra income, Kay explained that she is “earning the same, if not more” than at her previous full-time job.
She continued: “Obviously it is a staycation boom at the minute so I think I started it at the right time since people are into local holidays. It allows me to work around the baby. I can pick and choose when to do things.”
The money from her main job covers child care costs and bills, so any money made from The Burrow she can use to reinvest in the business and pay for extra things that arise due to the rising cost of living.
Kay said: “The amount of guests I get varies on the season, but currently every weekend I have guests and I’m gradually getting more mid-week bookings. I charge £120 a night, booking direct – so that’s £240 if someone books for the weekend.”
In a month, if all her weekends are booked, Kay could make up to £960. If the whole week was booked, she can make up to £1,680.
She continued: “It’s nice to know that you have a little bit of extra money, a buffer to help if needed.
“I saved up quite hard to do this. A lot of hard work has gone into The Burrow but it’s totally worth it.
“If you’ve got a dream and if you’re willing to work towards it and save it will pay off. For me, it has definitely paid off. It’s more than I wanted to.
“It’s amazing to see my hard work appreciated. I’m so lucky I get to share it with people and they like it just as much as me. I’d love to have another one.”
Together’s survey of 2,000 UK adults suggests people are looking to take advantage of this continuing trend with 24 percent of people considering becoming a holiday let owner.
The biggest motivator is potential profits, with nearly half (48 percent) saying they would consider short-term holiday letting as a way of earning extra money. This is even more important to those aged 55 and over, with two in three (65 percent) driven by an additional source of income.
The next most important driver was for owners to maximise the use of property they already own (28 percent) and as a way of funding their retirement (29 percent), which is also important for older Britons, with 37 percent saying this would be their top reason for being a host.
Marc Goldberg, Commercial CEO at Together explained that many investors may see an opportunity in short-term holiday lets, which can provide greater yields than traditional longer-term Buy-to-Let, which typically sees tenants signing up to six or 12-month contracts.
Although this may give investors more security, short-term holiday lets allow landlords to increase the rental they can charge in peak seasons such as half-term, Christmas and summer holidays.
Mr Goldberg continued: “Staycations have been in extreme demand – with bookings reaching all-time highs this past summer – and their popularity looks like it’s here for the foreseeable future. As our research shows, many potential investors are looking to short-term lettings as a way of generating more profit, and this comes at a time when rising mortgage costs are making the traditional buy-to-let market less attractive.
“We are also seeing UK families wishing to stay in the UK to control costs, avoid getting caught up in potential airport travel issues, or who just want to experience the UK’s beautiful countryside, so there are lots of new holiday letting opportunities cropping up as more people recognise the income benefits of becoming a full or part-time host.
“While the rewards are plenty, there are some considerations for anyone weighing this up. Mortgage applications for holiday let properties are not always available from mainstream lenders, so it’s worth potential holiday let owners talking to specialist lenders, who could help to turn their ambitions to becoming a host into a reality.”
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