<aside> 💡 The above question is one of the first questions that any investor asks. And for a good reason, the location is key to the success of any holiday let or short-term rental property investment. Omah analyses thousands of data points to identify the best UK neighbourhoods. There is some area for everyone, and we can help narrow the search down.
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We look at multiple criteria to determine the best areas to own a holiday let property. We do our analysis at a postcode level to make sure we get a granular view of the opportunity.
↓ Are the markets large and stable? Do they have at least £5m of annual gross bookings across listings in the area? Are the rentals growing or shrinking over the last four years? Click here
↓ Active Airbnbs are listings available for lettings for more than 180 days a year. How many active listings are there, and what's the growth? Is the listing growth more than the market growth, implying over-saturation?
↓ How strong is the footfall in the area? Are similar properties with similar configurations in the area seeing an above-average performance?
↓ What is the average rental return you can aim for in the area?
↓ Can you sell at a high probability of appreciation? How quickly can you sell if you need to exit the property? What property configuration is selling more
↓ Is the competition fierce in the market for demand? Are there too few similar configuration properties in the area, and the likelihood of cannibalization of revenue?
↓ Are holiday lets permitted in the area? What is the sentiment towards holiday lets from the local council and the residents?
↓ What is the propensity of crimes in the neighbourhood vs the crime propensity in the overall district? An area with a high crime would not be ideal, but we will need to dive deeper into the type of crime.
↓ How does household income compare in the area vs the household income in the county? A higher ratio can imply a premium locality or neighbourhood.
↓ Is the area vibrant? What are people saying via reviews on google pages of area restaurants, cafes, nightlife, clubs, tourist attractions, etc.? What is the growth of these reviews?
↓ Are existing holidaymakers happy with the area? What are guests saying about the location across reviews left on Booking.com and Airbnb.com pages of properties in the area?
↓ Does the neighbourhood have enough super hosts or professional managers? Higher density would imply a more robust ecosystem and more competitive prices for you.
↓ Do you have the borrowing and minimum down payment capacity to buy a holiday let property in this area?
↓ Seasonality is a significant factor for a lot of investors. So it's worth measuring how much business gets picked up in the top 4 months vs the rest of the year.
↓ Everyone would like their downside protected. What are the AST rental figures in the area, and what's the rent growth trend?