Aria Resorts is now the owners of 14 holiday resorts across the UK and the much-lauded Gara Rock, a boutique hotel destination near Salcombe in Devon. Today the company revealed its plans with the highly lucrative Cornish staycation market at the core of its fast-growth business strategy, given its leadership role in the UK tourism economy.
Aria has already invested over £100 million in Cornwall and is set to invest another £50m in the redevelopment programme at its flagship resort – Retallack Resort & Spa – and a set of first-of-its-kind in the UK luxury ‘boutique barns.’
Recent surveys on the UK staycation market from leading bookings company Sykes Holiday Cottages, Mintel and Barclays Corporate Banking reveals that the Brexit factor is having a positive influence on people choosing more holidays ‘at home’ in the UK. The ‘Sykes Staycation Index’, which uses booking figures, consumer research and data to reveal trends in the UK holiday market, shows that 66% of Brits enjoyed a staycation last year, which is a 10% rise compared to 2017, benefitting holiday home owners significantly.
This coupled with the reduction in investors purchasing buy-to-let residential properties as a result of Government changes to tax allowances around these types of properties, means that the Aria Resorts fully mortgageable, fully managed, luxury letting properties could be the ideal opportunity for both ‘armchair’ and lifestyle investors who are looking to use the property as a holiday home for themselves, friends and family.
Ben Nolan-Stone, sales director for Aria Resorts, said: "Many of the experienced investors who approach us have done their detailed research, both on the tax situation with buy-to-let property options, and on the continually growing UK holiday market. They are aware that sophisticated investment funds are focused and active in the UK holiday property sector and we expect this level of activity to continue. The great thing about our Aria luxury holiday homes property products is that they work equally well for a qualified individual investor who wants to buy one holiday home or the institutional investor who may buy several, and also for those who want an outright cash buy, or those who wish to mortgage.”
Ben continued, “An investment in one of our new boutique barns at five star Retallack Resort & Spa, guarantees a return of 7**% every year, and we take care of all the marketing and management requirements so there is a never a worry. All of the research from highly credible sources is showing that the UK holiday property sector is performing very well and has been resistant to the cloud of Brexit, so for those who choose to make a positive and secure investment at this time, this is a fantastic financial opportunity."
The demand for UK holiday properties shows no sign of slowing down, with investors attracted to the growing staycation trend and the tax benefits associated with holiday lets. In addition, Aria Resort investors will benefit from the tax conditions surrounding the ‘furnished holiday properties.’ Furnished holiday let (FHL) is a tax term which covers a whole host of different types of activities linked to short-term letting of residential property.
Andrew Stanley, managing director of Stanley Tax Associates, one of the UK’s largest independent specialist property tax advisers, focusing on capital allowances, said: “There are a huge amount of tax benefits when you shift from buy-to-lets to short-term letting. One of the drivers for investors has been the loss of the deductibility of the bulk of their mortgage interest. That hasn’t had any impact on furnished holiday lets. When you’re investing in these sorts of properties, you can still retain the deductible allowance rather than potentially paying tax on turnover on a buy-to-let. There’s a whole myriad of tax positives, compared to more standard investing.”
Iain Brown, CEO of Aria Resorts welcomes a greater understanding of the tax benefits associated with furnished holiday lets, as this is a key factor which is very often overlooked. Iain said, "We know from the holiday property purchase and investment inquiries we receive at Aria Resorts, only a small percentage of our prospects are aware of the favourable HMRC tax rules for holiday property lets. Aria Resorts takes the subject of compliance very seriously. It's important that our customers are aware of all of the benefits linked to a holiday property purchase and we therefore strongly recommend independent experts provide additional qualified advice. However we are fully confident that our new flagship Cornish properties at Retallack Resort & Spa more than meet both mortgage requirements, and FHL tax conditions, hence us developing them as we have done.”