The Intermediary – September 2026 - Flipbook - Page 13
BUY-TO-LET
In focus
“I didn’t factor this in as a variable!”
Case by case
there is no fixed monthly rent to rely on. Instead,
For brokers, lender appetite is only one
lenders often need to assess historical trading
consideration when it comes to getting a holiday
accounts, occupancy levels, booking data or
let case over the line. Strutt notes that “even
income forecasts.”
though holiday let mortgages can be financially
Abbs adds: “The opportunity is in helping
rewarding, there is still a huge amount of work
investors distinguish between properties that
involved, and many of the biggest lenders
genuinely work as holiday lets, and those
wouldn’t even consider offering holiday
that only look attractive based on optimistic
let mortgages.”
assumptions. There is still appetite, but the
Meanwhile, those that do can take markedly
different approaches to individual cases.
Abbs says: “There is still a genuine lender
quality of the underlying investment matters
more than ever.”
appetite for holiday lets, but it remains a
The bigger picture
specialist part of the mortgage market and
In communities where housing stock is already
lenders can take quite different approaches
limited and holiday accommodation is heavily
to the same case. That variation is one of the
concentrated, holiday lets can exacerbate existing
reasons advice can be particularly valuable. A
housing shortages. However, they account for
property that does not fit one lender’s criteria
only one part of a much wider supply challenge
may be perfectly acceptable to another, because
– one hampered by doggedly high construction
of differences in how they assess projected
costs and ongoing planning pressures.
income, property type, location or the
Meanwhile, affordability barriers facing local
borrower’s circumstances.”
The seasonal nature of the holiday let market
also adds complexity, making the viability of the
individual property particularly important.
Ward notes: “Unlike [Assured Shorthold
Tenancy (AST)] properties, holiday lets typically
generate seasonal income, resulting in less
buyers remain, as the cost of living continues to
rise alongside mortgage rates.
The problem, then, runs much deeper. Morris
concludes: “Supply matters, but so do property
values, local incomes, mortgage affordability and
access to finance.
“Unless those elements align, simply moving
predictable cashflow and a greater risk of
a home from the holiday let market to the sales
periods with low or no occupancy. Rental
market does not guarantee that it will become a
assessments are also more complex, because
home a local buyer can actually afford.”
September 2026 | The Intermediary
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