Since the launch of Airbnb in 2008, the booming of holiday homes in the UK changed the face of the country's property market, making the buy-to-let business more attractive and emerging as a more profitable business. Although, keep in mind that the success of Airbnb's business depends on understanding the local laws and regulations to avoid legal issues and challenges before kick-starting your Airbnb business venture.
Interested to grow your holiday home portfolio in Stoke? Let's first take a deep dive into:
Approximately halfway between Birmingham and Manchester lies a unique city, Stoke-on-Trent, also known as Stoke. The city was formed by combining six separate towns, with Hanley as the city center, famous and creative for creating art from dirt- globally recognized for ceramics and pottery.
But that's not all, the city itself holds its worldwide reputation for its delicacy of oatcakes often served with melted cheese or either a choice of sausage, bacon, and tomatoes. And interestingly, stoke is also well-known for calling strangers "duck". If you ask, why? Well, 'duck' is a classic stokie greeting as a term of respect.
Regardless of the season, Stoke appeals year-round with its historical sites, outstanding museums, beautiful Italian gardens, theme park- home to adrenaline-pumping rollercoasters, Shopping Village, a mile-long lake, and Trentham Monkey Forest.
Overall, Stoke is worth the visit as tourism continuously plays a huge role in contributing to its city economy and local businesses. Apart from that, stoke welcomed 26.6 million travelers in 2019 where 1.5 million travelers stayed overnight or more, according to Economic Impact Assessment, Staffordshire statistics.
Location plays a huge role in Airbnb buy-to-let properties. That said, major cities like Manchester, Birmingham, and Liverpool are only an hour away from Stoke- the heart of the country that significantly captivates property investors with relatively low house pricing and high rental demand.
You should be able to find investment property for excellent value for money that offers a buoyant housing market and a number of desirable areas to choose from, meaning plenty of opportunities, particularly for those looking for real and sustainable financial growth. According to Luxury Travel Blog, Stoke was the 3rd most profitable city to be an Airbnb host with a monthly revenue of £1,030.
Stoke is also one of the top ten areas in the UK for rental yield with almost 8.0% making it the leading buy-to-let hotspot in the country with the combination of house prices, local salaries, and rental returns (Simply Business, 2019).
Moreover, Stoke is also known to be a university city making it plenty of opportunities to tap into the student housing let market. With that being said, it is fair to say, Stoke is changing rapidly and emerging as a rising hotspot allowing property investors to fruitfully grow in their holiday let business venture.
Any letting of a house or flat or residential tenancy available for any period less than six months, provided with fully furnished amenities is considered a short-term let.
Although, Furnished Holiday Lets/Short-term let accommodation does not require a license to run an Airbnb business in Stoke, keep in mind, that buy-to-let properties in Stoke must obtain an HMO license before certain types of property can be rented out in England. Moreover, it is important to be aware of any changes in the short-term let regulations via Stoke's Council website.
Short-term lets may not require an EPC. Although, keep in mind, that an EPC will only be required according to the guidelines defined by HMRC, where the property is occupied for the purpose of a short-term let in which each guest stays for less than 31 days and is let out for a combined total of four months or more in any 12-month period, and if the guest is responsible for paying the energy costs during their stay.
To ensure the guests' well-being, short-term let landlords are obligated to follow the official legal obligations and safety regulations. In addition, Airbnb offers guidelines, that encourage responsible hosts to:
Letting out a short-term that is available for less than 140 days a year is not classed as a self-catering property and is liable to pay council tax.
However, those short-term homes that are let for more than 140 days are required to pay business rates as they are considered businesses. Although keep in mind, that rates vary depending on the location, size, type of the property, and the number of occupants it can accommodate in the property.
Seek professional advice if any doubts as it is good to always stay on top of your taxes!