Aria Resorts, a provider of holidays and investment properties around the UK, have today announced a strategic partnership with Derbyshire-based IFA firm Harvest Associates. This follows on from the hugely positive growth being reported by major UK holiday rental specialists.
As a consequence of this growth, the last two years has seen growing interest and appeal in the UK holiday property sector. This investor interest is proving to be appealing across both the private and institutional space, with major investment funds acquiring the likes of Centre Parcs, Park Dean, Holiday Cottages & Hoseasons in huge multimillion-pound deals.
Some of the influencing dynamics behind this buoyant performance
Whilst some industries are being affected by the uncertainty of Brexit, the UK holiday property sector has surged forward. To illustrate this point, three of the UK’s major holiday rentals companies are reporting double digit growth in bookings.
Hoseasons, which sells self-catering breaks across the UK, said bookings were up 16% on last year, while Holidaycottages.co.uk said bookings for properties in England, Scotland and Wales had risen by a staggering one-third, year on year. Sykes Cottages also report that their summer bookings have increased by 25% compared to 2018.
Proving appealing despite Brexit
The weakness of the pound is one determining factor, with Brits conscious that their currency is worth 20% less than it was in 2016 and being discouraged from European holidays. The weak sterling is having the opposite effect for inbound tourists. They are choosing the UK in the knowledge that their money will go much further.
Aria Resorts is a relatively new player in the UK. Backed by US alternative investment fund Angelo Gordon, they offer qualifying investors opportunities to purchase furnished holiday properties in regions such as Cornwall, North Yorkshire and the Isle of Wight before giving investors a hands-off rental platform.
Commenting on the market trends and the partnership with Harvest Associates, Aria Resorts’ chief executive Iain Brown said: “The UK holiday property space has been a major focus for institutional investors for the last few years but we are now seeing this interest filter down to smaller private investors and pension funds. The performance of the UK holiday industry is measuring up well across virtually every metric and a natural follow on from that is we are seeing a lot of interest in our fully serviced investment offering. On the back of this investor interest, we wanted to operate with full compliance of the Financial Conduct Authority rules and so teaming up with Harvest Associates was a logical and appealing step for us to take.”
Harvest Associates boast a 20-year trading history, with 25 financial advisors who are able to cover most of the UK. Grant Hickton, an independent financial advisor for the company, said: “In light of the downturn we have seen in the residential buy to let market, a growing number of our clients had begun to ask about the holiday property lets space. This type of investment opportunity is never going to be suitable for everyone, of course, but the trends we are seeing are very positive and some investors are greatly appealed by the asset class.
“When Aria Resorts approached us to consider the suggestion of working together, we were impressed by their knowledge of the sector but especially by their interest in compliant distribution. We are pleased to work with them and we will monitor this exciting sector with interest.”