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A recession means less people are jetting off to exotic destinations this year, preferring to opt for a cheaper UK holiday – which means holiday home rental is set to soar.

With 63% of Brits planning to shun hotels for a more affordable holiday home this year, investing in a property could be a great financial decision.

Holiday Cottages Group has seen a 30% increase in Easter bookings alone this year – making holiday letting a viable option for landlords looking to make the most of their investments. While residential lettings become more competitive, opportunities for holiday home rental income are on the rise.

The key for success, of course, is homework. Before taking steps to take out a buy to let mortgage, its best to really know what you are getting yourself into. Residential letting in a city might be easy, but letting a holiday home is a whole different matter. Location is key, as is the surrounding area – what sort of income does the area bring in from tourists? What are the top destinations? What is the weather like? How best can you advertise your investment?

The next few years are going to be tough for a lot of people, but everyone needs a break now and again. Self catering holidays in the UK are going to become a family favourite, so it's best to jump aboard early. Talk to a financial adviser about investing your money into the great British holiday market.

Simon Law, vice president of property at Holiday Cottages Group says: “With the increasing demand for self catering holidays in the UK this year, people need to make the most out of their second home to really unlock its earning potential.”

SOURCE: Holiday Cottages Group, 26/02/09

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