DEMAND is finally turning a corner for second home mortgages as “January felt like a gear change” with a 267% jump in enquiries from property owners looking to bring their homes to market as holiday lets, experts have revealed.
Budget uncertainty, rate volatility and ongoing regulatory chatter cooled confidence in 2025, they claim.
But they say there’s a sense that buyers are slowly re-entering the market — particularly those who sat on their hands through 2025.
Kate Allen, Owner at Kingsbridge-based Finest Stays, said that from what she’s seeing in Devon, second home demand is still trailing the main residential market, but it’s noticeably picking up pace compared to 2025.
Coastal hotspots like the South Hams remain hugely desirable from a lifestyle point of view, but buyers are being more price sensitive and more mortgage dependent than they were during the post-Covid boom.
At the same time, there’s growing interest in properties that can genuinely work harder — either as higher yielding holiday lets or flexible part time main residences.
January felt like a gear change
She said: “January felt like a gear change. We saw a surge in estate agents requesting rental overviews, which typically means stock is coming to market and buyers are looking closely at whether holiday let income will support lending. Holiday home buyers are still led by lifestyle and emotion, but unlike the post-Covid rush, the financials now have to work.
“Our rental overviews are regularly used to help secure mortgages, which shows how central income modelling has become. We also saw a 267% jump month on month in enquiries from property owners looking to bring their homes to market as holiday lets.
“That level of uplift usually signals serious intent and confidence from owners that the holiday let model is still commercially viable, rather than just passive interest.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said second homes are perfect for those who can afford them.
He continued: “I am currently looking at second home borrowing options for a client. By the time they weighed up moving and the associated costs, a small bolt hole on the coast became more desirable.
“Lenders are still comfortable lending in this space, and for those who can afford it and dream of having a place by the beach to relax, why not?”
Why not?
Zaman Sheikh, Director at Northwood Chelmsford, said he has noticed a trend of buyers moving out of big cities.
He added: “Many of my buyers are relocating out of London into Essex seeking a lifestyle change, often ahead of starting families and in an effort to find more value for money with similar commuting options into the city.
“London has hit an affordability ceiling and people are looking for value for money outside the capital, while landlords are exiting and deploying capital elsewhere. January has been a very busy month for properties coming on the market and buyer activity.”
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said the Spring Budget next month is pivotal for the market.
He added: “The housing market is a yardstick of the wider economy and no one is confident about it. The Spring Budget really does need to incentivise buyers, workers and investors or else there will be another bleak year ahead for the Chancellor.
“With the Pound weak against the Euro, international investors have got a bargain in the UK at the moment for property, but that is a stain on Labour’s reputation.”
Photo by the blowup on Unsplash.
