Welcome to this weeks newsletter. After what feels like weeks of dull, grey days its great to see a bright yellow thing in the sky ☀️!

This Week's Newsletter Takeaways:

• 🧳 Solo Travel Surge: 90% increase in solo travel searches, with longer stays (17 nights) and more pet companions.

• 🏘️ Gwynedd Market Alert: Holiday let values down 12.4% due to second-home restrictions and 150% council tax premiums.

• 💼 Limited Company Options: Tax benefits vs. higher costs when moving holiday lets to a limited company structure.

• 🎬 Marketing Tip: Boost guest experience by incorporating local film locations into welcome guides.

• 🏡 Resource Spotlight: Interior design trends, luxury property features, and revenue strategies for 2025.

See you next Saturday at 5pm?

Phil

Founder, My Holiday Guide

IN THE NEWS

Airbnb Global Spring Travel Trends

According to Airbnb’s spring travel trends article, solo travel searches have grown by 90% compared to last year.

• Solo travellers are taking longer trips, averaging 17 nights, compared to 9 nights for duo travellers and 8 nights for families.

• There's a rising interest in "soft travel," which emphasises leisure and wellbeing through slower-paced trips.

• More solo travellers are bringing their pets on their trips, accounting for a 40% increase in searches for trips with pets.

• Travellers are embarking on extended journeys for self-reflection.

Article 4 Impact: Gwynedd Holiday Let Owners Face Property Value Declines

Gwynedd County in North Wales has seen a significant slump in property values due to measures aimed at curbing second home ownership.

• House prices in Gwynedd have fallen by 12.4% year-on-year. This is the biggest drop in Wales.

• This decline is attributed to Cyngor Gwynedd's Article 4 directive, which restricts the conversion of residential properties into second homes or holiday lets, and a 150% council tax premium on second homes.

• Some homeowners report significant losses in property value, with examples cited of houses losing £30,000 to £100,000 in value.

• Other counties in North Wales have seen more positive trends, with Conwy and Wrexham experiencing property value increases in 2024. Anglesey also saw a substantial increase in property values in the last quarter of 2024.

• The Principality Building Society suggests "green shoots" of recovery in the housing market and predicts values are poised to rise in 2025.

• Cyngor Gwynedd implemented these pricing controls to address housing shortages for local people, noting that a large percentage of the population was priced out of the housing market due to the number of holiday homes.

• These measures have caused market uncertainty, leading some owners to reduce their asking prices.

LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.

Is Setting Up A Limited Company Right For You? - Pro’s & Con’s

Schofields Insurance recently wrote an article on the benefits of setting up a limited company. With the changes in tax regime, moving your properties into a limited company may be an option worth considering.

Here’s a summary of the pro’s and con’s as-well as the key steps you would need to take to setup and migrate a property into a limited company. To ensure a successful holiday let purchase or transfer, always seek advice from qualified tax and legal professionals. The information provided is not advice; conduct your own research and consult experts before making decisions.

Tax Advantages:

• Mortgage Interest Relief: Limited companies can offset mortgage interest against profits, which can reduce corporation tax.

• Corporation Tax: Limited companies pay 19% corporation tax on profits up to £50,000, which may be more favourable than individual income tax rates.

• VAT Threshold: Multiple properties can be owned in separate limited companies, each with its own £85,000 VAT threshold.

• Business Rates Relief: Each separate limited company can utilise the £12,000 threshold for small business rates relief.

• Stamp Duty Land Tax (SDLT): If a buyer purchases the company instead of the property, the SDLT rate can be reduced to 0.5%.

• Inheritance Planning: Owning a holiday let as a limited company allows for easier inheritance and tax planning through gifting shares.

• Reinvestment: Profits can be retained within the company to purchase more properties.

• Reduced Risk: Personal assets are protected due to the company's separate legal entity status.

Disadvantages:

• Costs: Setting up and running a limited company involves more costs compared to individual ownership.

• Mortgage Rates: Mortgage interest rates and fees are typically higher for company loans.

• Administrative Burden: There are legal and regulatory requirements, such as maintaining and submitting annual accounts and tax returns.

• No Capital Gains Allowance: Limited companies do not have a capital gains allowance.

• No Personal Allowance: The £12,570 personal allowance for individuals does not apply to limited companies.

• Double Taxation: Taking profit out of the company as salary or dividends results in both corporation tax and income tax.

Action Steps for Transferring an Existing Holiday Let:

• Set Up the Company: Register with Companies House, ensure the articles of association allow property ownership and letting, and open a business bank account.

• Transfer Ownership: Sell the property to the limited company through a formal conveyancing process.

• Pay Taxes: Pay SDLT and any capital gains tax due.

• Notify Lender: Inform the existing mortgage lender and arrange a new commercial mortgage if necessary.

• Update Documents: Inform HMRC of the change in ownership and update licenses, insurance policies, and utility accounts.

FEATURED RESOURCE
Highlighting useful tools and resources for your holiday let.

Film Locations Map

In previous editions we have highlighted how you could include local film or Netflix series locations within your welcome guide.

For example, Visit Manchester have created a dedicated page on their website highlighting film locations. The website includes a downloadable PDF you or visitors can use.

Your local tourist information may have a similar downloadable you can use or you could create your own?

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INTERIOR DESIGN
Interior design inspiration and decor tips.

PROPERTIES OF THE NEWSLETTER
We all love looking at and getting inspiration from other properties so here’s our top pick for this edition.

NO FOMO
Missed last weeks newsletter? Here’s one thing you might like.

How to boost revenue in 2025

In last weeks newsletter we delved into the latest information from Key Data and highlighted a number of tactics you can use to boost your bookings in 2025.

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