In light of recent rising inflation, reflected in higher food, heating and petrol costs, the following summary of the outlays in running a holiday home can be used to prepare and plan for a purchase, or can be used to track and record existing costs.
As this property will typically be used less than a let property, and sometimes only for a few weeks in the year, running costs will be noticeably lower in many areas.
Fixed ongoing costs
Mortgage. Or loan taken out to secure the property.
Council Tax. A discount on this can currently be received of between 10% and 50% depending on the policy of the local authority.
Annual service charge. If the property is leasehold with a requirement to pay for the upkeep of the building and communal areas.
Home or Buildings Insurance. Even if the property is not let out, specialist holiday home insurance is still required to cover the special circumstances of a second home, such as extended empty periods and cover against burst pipes in the winter.
Contents Insurance. As above, special cover is required.
TV Licence. A standard TV licence is required for the second home.
Telephone line. Although not essential in an age of mobile phones, a land line will be required if wi-fi is to be added. Many holiday homes in more remote locations can struggle to pick up a good signal so it is worth checking reception first.
Variable costs
Water Rates. Ensuring the property is on a water meter will reduce the annual costs dramatically.
Gas and Electricity. Again these costs will be significantly lower as consumption is less.
Repairs. These could include external work such as replacing guttering or roof tiles to faults with major appliances such as washing machines and dishwashers.
Boiler contract. Worth it for a little used appliance in a second home?
External ongoing maintenance. This depends on the property naturally and the work required. A garden will require ongoing maintenance and you may have to budget for cleaning windows, especially in coastal locations.
Key-holding. A local keyholder may be employed simply to hold a key for access at the owners request, or to perform a wide range of duties from checks to welcome packs and actually carrying out maintenance and cleaning.
Decor refreshment. Which might involve redecoration, new carpets. Again an infrequent cost due to low levels of wear and tear.
Replacement furnishings. Which might involve replacing larger items of furniture like sofas or mattresses. Again not an essential spend depending on the preference of the owner.
Electrical goods and kitchen utensils. From electric can openers to HD T.V.’s, down to replacement batteries in smaoke alarms.
Soft furnishings (towels, bedding).
This might seem like a daunting and expensive set of costs for a holiday home owner. But the reality, and the consistent trend through this list is the relatively low levels of use and wear and tear which second homes incur. So the costs, after acquisition and fixed annual costs, can be quite low.
