Cliff Ward of Pikl Insurance offers insights on how winter can be the best season to invest and considerations for winter property buyers
The autumn into winter months traditionally marks a quieter time for the housing market, with fewer buyers competing for properties and sellers often motivated to close deals before the new year. This makes it an attractive period for savvy buyers looking to secure their next property, particularly for those interested in the potential of holiday lets.
The housing market is generally less competitive during the colder months, meaning there’s an increased chance for you to negotiate. According to Rightmove, properties sold in the winter months tend to sell for a lower price, and this is consistent with what I’ve seen over the years. Sellers during this period tend to be extremely motivated to strike a deal before the year-end, so you could see prices reduce in December too.
For those looking for properties in key areas known for their holiday appeal, from Cornwall’s coastal retreats to Lake District lodges, this time of year presents a valuable opportunity for you to access properties below peak prices and get ahead of spring’s usual rush. Whilst most properties will be on the market from spring to summer, winter-time offers different advantages if a suitable property becomes available.
Considerations for winter property buyers
1: Understand Local Regulations
Firstly for investors, understanding local regulations is crucial. Different authorities may have specific rules, such as caps on the total number of annual rental days allowed or local licensing requirements. Familiarising yourself with these early can avoid issues down the road and provide a clear picture of your income potential based on local demand. The last thing you want is to be caught out by hidden fees or legal issues that turn your profitable investment into a loss-making nightmare. If you do buy a property in a region with limits on how many nights you can rent your property out, it may be sensible to do this during busier months, which may not be the winter period
2: Consider energy cost impacts
With energy costs still elevated during this period, prioritising properties with strong energy efficiency ratings (or budgeting for upgrades like better insulation or double glazing) can help you save money. Ideally, you’ll want a property with a minimum Energy Performance Certificate (EPC) rating of C for energy savings, although this can be tricky to find in older homes. This is something to consider when viewing a variety of properties.
For holiday lets, some regions such as Scotland require that some properties hold an EPC within the last 10 years as part of obtaining a short let licence. Other regions such as England may look to do the same in the future.
If you’re looking to switch from holiday lets to more traditional landlord rentals, an EPC is legally necessary and a minimum rating of E is required. This is more likely to increase to a C in the next few years under the current Labour government, meaning more money for energy efficiency upgrades in your home may be needed. You may want to make this a priority now to avoid extra costs in the future.
3: Choose Mortgage Rates Wisely
Despite mortgage rates recently decreasing towards the end of the year, buyers may want to look into fixed-rate options if possible or explore flexible mortgages that allow for a mix of short- and long-term rentals to help offset costs, as future rates remain uncertain. Whilst lower rates were considered the norm just a few years ago, this is no longer the case and they may take a while to come down. Speak to a mortgage adviser if you are unsure or want to shop around for the best deal.”
Assess your holiday-let insurance requirements before buying
Most mortgage providers require some form of insurance in place before buying a property. Some properties may be more difficult to insure than others depending on location, construction materials, and flood history.
Insurers also view Holiday lets differently than regular household properties, as they may be empty during quieter periods such as the winter months or occupied by guests during busier periods. This means that some form of dedicated holiday-let insurance is usually required.
When looking at potential homes to purchase, do several insurance quotes to get an idea of cover requirements and the likely insurance cost. Speak to an insurance broker if you are struggling to find insurance cover or are not sure.
4: Assess The Area in Varying Weather
Lastly, buying in winter also allows you to see how the area stands up in the worst weather conditions. When considering a property purchase, it can be worth doing a drive-by in bad weather to see how the location deals with heavy rain, flooding, or even ice and snow. If you’re opting for a holiday-let investment, this can have a huge impact on occupancy rates, so it is really essential to check. Other key things to consider include: if the road is well lit, well maintained and without many pot-holes, and if there is sufficient on-road parking for additional guests.
5: Preparing for a Holiday Let Business in Winter
For those ready to launch their holiday-let property, winter is a strategic time to prepare for the upcoming busy season. Focusing on renovations or decorating work during the winter allows for good preparation when demand typically rises in spring again. This is also the perfect time to see how the property stands up against the cold weather. Look for issues like mould, drafts in windows and doors, and how well the existing boiler and heating systems work. You’ll want to see whether it’s storm-proof and insulated enough to keep guests comfortable, and satisfied, and leaving consistently high reviews.
Winter is a great time to take images of the property to increase occupancy. High-quality photos of a warm, inviting space in winter can set a great first impression. Pop the fire on, leave steaming hot drinks in the background, and add interior accessories like high-pile rugs and textured blankets that create the perfect winter getaway feel. These are fantastic to use throughout most of the year, with a quick change to more summery images from April - July.