Recap of holiday home news: 19 February 2010
Its time once again for our holiday home news round up, here’s what’s been happening: 16,000 burst pipe claims this winter, 10 property improvement mistakes, which are the most expensive ski resorts, beware of this property rental scam and some useful holiday rental statistics.
Claims flood in for insurers - business.scotsman.com
It’s been a bad winter for insurers. The Association of British Insurers (ABI) estimates claims caused by November’s flooding in Cumbria will reach £206 million.
In addition to the floods, the UK insurance industry has received almost 16,000 home insurance claims relating to water damage caused by the coldest winter in decades. Sainsbury’s Finance estimate that claims were worth £35 million, with an average claim of just over £2,200 for damage caused by burst pipes.
Axa has reported a similar increase in claims related to burst pipes. It said the average claim was for damage worth £30,000, with some costs reaching six figures.
A high proportion of the claims were caused by homeowners turning off their heating before going away. Take precautions to prevent frozen pipes and bursts.
The effect of these claims could be that premiums increase.
10 property improvement mistakes 
Just bought, or looking to buy a holiday home? Before you invest in renovations, bear in mind that some improvements do not add value to a home – according to ‘experts’
- Swimming pools – they’re expensive to install, very expensive to run and maintain. Although they can be a deal breaker in holiday lets, especially those abroad
- Extravagant fixtures and fittings – gold taps and wood panelling isn’t to everyone’s taste
- Award-winning gardens – gardens can be high-maintenance, meaning you have to employ a gardener or spend hours gardening when you should be relaxing or managing your holiday let
- Reducing the number of bedrooms
- The hot tub – don’t agree, as these can attract bookings in holiday homes
- Converting outbuildings into cottages – One holiday let cottage will add value to a country house, but any more and the business element starts to overtake the home element. This depends on your objectives. If holiday letting is your business then there are advantages to being on-site
- Installing new kitchens or bathrooms – Adding a state of the art shower or bespoke kitchen actually limits your market. In holiday homes one of the top features that guest are interested in is the kitchen, especially in the UK
- Over-ambitious extensions – most buyers expect your home to be similar in size and price to the one next door
- Home gyms
- Garish or kitsch decoration – When it comes to the walls, beige is best
I expect what improvements you make depends on whether you are not looking to sell in the next few years or if the holiday home is a long term investment. Spend your money on the things that will make your property function and attract bookings.
Which are the most expensive ski resorts in Europe? - wealth-bulletin.com
Looking to invest in a holiday home in a ski resort. How much are chalets? what’s the cost of living?
With the demand for luxury chalets by holidaymakers holding up, it could be a wise lifestyle and investment decision.
Here is a list of the top ten most expensive European ski destinations:
1. Courchevel 1850, Three Valleys, France
Average price of property: €36,913/m²
Cost of a beer: €4.50
2. Méribel, Three Valleys, France
Average price of property: €17,860/m²
Cost of a beer: €6
3. St Moritz, Switzerland
Average price of property: €17,161/m²
Cost of a beer: €4
4. Val d’Isere, France
Average price of property: €15,665/m²
Cost of a beer: €3
5. Zermatt, Switzerland
Average price of property: €13,536/m²
Cost of a beer: €3
6. Verbier, Switzerland
Average price of property: €13,536/m²
Cost of a beer: €2.40
7. Kitzbühel, Austria
Average price of property: €10,000/m²
Cost of a beer: €3
8. Megève, France
Average price of property: €9,200 m²
Cost of a beer: €3.50
9. Villars, Switzerland
Average price of property: €9476/ m²
Cost of a beer: €2
10. Chamonix, France
Average price of property: €9,064/m²
Cost of a beer: €5
Holiday rental statistics 
Ever wonder which holiday rental website is the largest, has the most visitors etc. – especially when they all seem to say they are the largest.
It’s difficult to determine without statistics. However, according to Hitwise, HomeAway Holiday-Rentals and Owners Direct leapt into the top 10 travel websites in the ‘Destination and Accommodations’ category for January.
The holiday rentals sector has experienced exponential growth over the last decade and is now estimated at a $60 to $100 billion global business.
According to industry analyst Mintel, around one in five people currently stay in holiday homes and self-catering holidays are rising every year. In 2009, self-catering holidays were forecast to represent over 60% of all overseas holidays and Mintel expects the self catering market to continue to outstrip general holiday growth and exceed 34.3 million breaks by 2011.
Also, from www.tnooz.com, HomeAway, operator of the HomeAway Holiday Rentals and Owners Direct brands in the UK, has also released its 2009 annual report for the UK.
- HomeAway says it is reporting 43% growth year-on-year in booking requests from 2008 to 2009
- Growth of property listings has also jumped by 45% over the same period
- Much of the company’s growth has been secured due to its aggressive acquisition strategy in Europe
- Traffic to the European sites, according to ComScore, are increasing by 65% year-on-year (2008 to 2009)
- On a worldwide basis, HomeAway is reporting revenues of $120 million for the year ending 31 December 2009, with one third of the company’s revenues coming in from its European division
These interesting statistics are positive signs that self-catering holidays are on the increase. Bear in mind that just because a site receives lots of visitors, it doesn’t necessarily mean that they will convert to bookings for you. Niche sites could be more productive.
The Guardian reports that tenants who are searching online for property to rent are being targeted by a rental scam, by so-called landlords who ask them to ‘prove funds’ with a money transfer receipt made to a friend.
The Citizens Advice bureau is reporting cases of people falling victim to a scam where fake landlords, who often claim to live abroad, ask prospective tenants to make a “secure” money transfer to a trusted person – either themselves or a relative. They are then asked to send a copy of the receipt to the landlord to prove they have sufficient money for deposit and rent before they are shown the property.
The prospective tenants are told that no one else can access the money, but find when they go to collect it that the money has already been withdrawn by someone else and the room or property doesn’t exist.
Advice from the article: money transfer, used in any situation other than to send money to someone you know, is not secure. It should never be used as a way of proving funds or as a method of payment to someone you don’t know.
If you are thinking of making a money transfer and/or searching for property to let online, the article offers some useful advice to protect yourself.