Now's the time for expats to invest in holiday lets

Thinking of buying a UK holiday home as an expat? You’re not alone – and the timing has never been better (writes Howard Reuben, Principal, HCH Financial Services).

Data released in February by VisitBritain reveals a clear resurgence in UK tourism:

• 19.5 million inbound visits in the first half of 2024 – up 4% vs 2019 and 11% vs 2023

• £13.4 billion spent by visitors over the same period – 15% up on 2019

  
  

This boom in both domestic and international travel is fuelling interest in UK holiday lets – especially among overseas investors and British expats seeking a flexible foothold back home.

Why UK holiday lets appeal to expats

For expats, owning a UK holiday let isn’t just a financial investment – it’s a lifestyle decision. These properties offer:

• A convenient and flexible bolthole in the UK.

• A chance to be closer to family and friends for extended visits.

• The potential for rental income and capital appreciation.

With the short-term rental sector thriving, many expats are acting now to secure properties while demand is high and interest remains strong.

Mortgage options are opening up for expats

Historically, some lenders have been cautious when it comes to expat borrowers. However, as demand grows, so does the availability of specialist mortgage products tailored to this group.

Many of these lenders offer a more nuanced approach to affordability and risk – especially for Furnished Holiday Let (FHL) qualifying properties. In most cases:

• Properties must be available for letting at least 140 days a year (rules differ in Scotland and Wales).

• Airbnb listings may be accepted, depending on the lender’s terms.

  
  

With demand rising, expert mortgage brokers are reporting a significant increase in holiday let mortgage enquiries from expats – and they have the tools to match clients with the right lender.

Why acting now makes sense

The current market conditions present a unique opportunity for expats:

• UK tourism is back on the rise.

• Rental demand for short-term stays remains strong.

• Lenders are increasingly accommodating of expat buyers.

• UK holiday lets offer both a personal retreat and a profitable investment.

  
  

Talk to a specialist holiday let mortgage broker

Every lender has unique criteria – which is why working with an independent, experienced broker is crucial. The right adviser can help you:

• Navigate the specific requirements for FHL properties.

• Secure lending that fits your personal financial situation.

• Identify lenders that are expat-friendly and short-term rental aware.

Ready to explore your options? Contact advice@hchfs.com for tailored mortgage solutions for expat buyers.