Searches for holiday lets have become more common among brokers in the buy-to-let market, amid lenders’ predictions that more consumers will opt to holiday in the UK.
Data from search system Knowledge Bank showed an “evident” increase in searches for holiday lets during July which, according to the search provider, was “undoubtedly” boosted by the stamp duty holiday and the impact of the coronavirus on consumer habits.
Matthew Corker, lender relationship manager at Knowledge Bank, said: “It is clear that the effects of Covid-19 are still hitting the mortgage market as they are likely to do for some time to come.
“More people are looking into holiday lets as the desire to travel abroad is falling among UK citizens while Covid-19 continues to impact the travel sector. I expect this to become a trend in the coming months as travel bans are enforced and air travel remains limited.”
The impact of the coronavirus was also visible in the residential market. Temporary restrictions on maximum LTV was the most common search by brokers last month, followed by self-employed applicants with one year’s accounts.
Kat Tymon, director at Mansfield Money, previously told FTAdviser that lenders were mostly requesting two years’ accounts or tax returns for self-employed clients, and basing affordability on an average of the two years.
Top five searches by brokers during July
Covid-19: Temporary Maximum LTV Restrictions
Lending to Limited Companies
Self-employed – 1 year’s accounts
Help To Buy Equity Loan Scheme
Requirement to be a Homeowner
Maximum Age at End of Term
Minimum Income – Interest-Only / Part-and-Part Single Applicant
Covid-19 : Furloughed Workers
Meanwhile, searches for the Help to Buy equity loan scheme ranked third. According to Knowledge Bank, this provided “further evidence” of a growing number of buyers looking to benefit from the current scheme, under which homes must be finished by the end of February.