Designing holiday let - 2 or 3 bedrooms?

[hethmet]

I agree about statistics, it's easy to pick the figures that suit, but I don't know what 'essar' is? Anyway, we have full planning for all our barns already so not restricted to holiday lets. It's our get out of mortgage free card . Well at least that's the plan at this point.

[Joanna]

I expect 'essar' will be along shortly to clarify that comment - made me smile

[newtimber]

I agree about statistics, it's easy to pick the figures that suit, but I don't know what 'essar' is? Anyway, we have full planning for all our barns already so not restricted to holiday lets. .

You should design to maximise your resale value. I think it'd be worth more as a home than as a holiday let.

Holiday lets need less storage space; small bedrooms with ensuite bathrooms are great for holiday lets but not so good as a home as you need to have more wardrobe space and the kids don't need ensuite bathrooms but do need space for a desk, books, friends etc

[greenbarn]

You should design to maximise your resale value. I think it'd be worth more as a home than as a holiday let.

I think that's very likely true, particularly since the tax laws changed. Difficult without a working crystal ball, but it may well be that it will become less appealing for people to buy a second home for holidays while hoping to let it to cover costs, and the "ideal holiday home" isn't necessarily going to be that attractive as a full time home for the reasons newtimber gives - storage space etc.

All food for thought........

Another thought to add to the equation - why build it as a holiday let with a view to selling in the future, rather than with a view to selling now? It may be for all sorts of good reasons that fit in with what you want, but it's not going to be an ideal way to make much money and will require a fair bit of ongoing work and will restrict your spare time.

[newtimber]

Another thought to add to the equation - why build it as a holiday let with a view to selling in the future, rather than with a view to selling now?

There are of course tax and VAT implications of whether you develop and rent (and be classed as a property investor) or develop and sell immediately (and be classed as a property developer)..

[Nemo]

Gosh it's so complicated isn't it! Glad I'm not in your shoes.

[charles cawley]

Niches have different levels of demand that's true.

In our area, sleep 2s are oversupplied and only top quality ones get decent occupancy at quite low prices.

Sleep 4s do well if en suites.

Sleep 6s are a bit of an awkward one but do well if all en suite.

Sleep 8s en suite are, perhaps, the strongest niche. Sleep 10+ the need for all en suite falls away. Sleep 4, unless top quality, would be a mistake in our area. But things do change. Only 4 years ago the sleep 2 market was far stronger and there are signs of recovery in that niche.

However the larger lets are more weather resistant, less open to competition from foreign holidays and offer better value in terms of cppn. In addition hot tubs or fancy extras are more economic and practical for these larger lets.