Tourism and buy to letIn the South West, where tourism is big business, Airbnb and similar platforms have had a profound effect on the rental industry, boosting property prices and the cost of renting. According to the Airbnb Insights Report, Inbound guest growth to the area grew 102% from July 2016 to July 2017. The area also has the third highest number of listings in the UK - with only London and Scotland having more. And landlords are not happy about it.
Only 12% of South West based landlords surveyed think Airbnb has had a positive influence on the market, compared to 17% nationally. Plus a massive 74% saying they would never consider using Airbnb to rent out their properties!
The traditional rental market in the South West is thrivingThe survey revealed that the average rental yield (annual rental income expressed as a percentage of the property value) in the South West is at a strong 8.5%.
Paul Shamplina, founder of Landlord Action, is aware that a yield of 8.5% is very strong but thinks that landlords will try other tactics to maximie their yield. â€œI believe landlords will still invest and look at trying to achieve yields of 5% but some may consider alternative business models such as HMO's (houses in multiple occupation), to achieve higher returns, especially when more and more tenants are looking at room lets, as they cannot afford to rent single unit alone."