Why the vacation rental market is about to collapse
Appetite for more distant vacations has also returned, with bookings to Costa Rica, the Maldives and Mexico more than doubling from demand in 2019, Skyscanner found.
AirDNA’s Naomi Hahn said: “Every time international travel restrictions have eased over the past six months, we’ve seen travelers react immediately.
“As we head into peak summer holiday season, pent-up demand is turning into high booking numbers.”
The end of the staycation?
A recent survey of 1,000 adults by Skyscanner found nearly half would prioritize international travel more than before the pandemic and most were more hopeful of holidaying abroad in 2022 compared to last year. last.
Less housing demand in the UK will mean more vacant homes and a risk of oversupply of holiday homes, which will be bad news for investors.
Experts have warned that those who have recently purchased vacation rentals as an investment may start selling.
Jonathan Cunliffe, who runs an estate agency in Cornwall, said: ‘British holiday homes have been booked up every week for the past two years but no one could reasonably expect that to continue.
“Those who bought in an area because they may have grown up there are likely to keep the property, but some who bought only as an investment and because they couldn’t go abroad may start selling.
“We are already seeing an increase in the supply of these homes on the market; it needs a rebalancing after two years.
A drop in seasonal rental investments
The drop in demand for holidays has already made investors more cautious. Joe Stallard, of House and Holiday Home Mortgages, a broker, said there was still an appetite among buyers for vacation rentals, but that was nothing like that seen in the previous two years .