The leisure and tourism market is a key sector for the South West, generating income for the region and contributing to the South West’s enviable reputation as the favoured holiday destination for UK and overseas visitors.

Vickery Holman has a team of commercial property specialists right across the South West from The Isles of Scilly to north and west of Bristol. Being based in the South West, our local knowledge of market conditions and developments puts us in a strong position to advise and help investors, purchasers, owners and tenants of leisure properties to make informed decisions.

staycations in the south west
Langdon Court Hotel
staycations in the south west

The Leisure Sector

We are more than simply an acquisition or letting agent for the Leisure industry. We build long-term relationships with our clients, helping them with complex lease agreements, valuations, disputes and business rates consultancy. Vickery Holman is the leading multi-disciplinary commercial surveying consultancy in the South West, so when you work with us, you benefit from the strength of the expertise across our business.

The Leisure market is diverse, ranging from holiday rentals to large caravan parks; guest houses to hotels; cafes to fine dining restaurants. Whether you’re a new entrant to the leisure market or a long-established operator in the tourism sector, our specialist Leisure team can help you make the right investment for you. We have 4 offices in the South West and a team of qualified surveyors to advise on valuations, rents and leases, business rates as well as to handle your sale or purchase. Our dedication to excellence and customer service is at the heart of what we do so you can trust us to give you the support and advice that you need.

To see the properties we are currently marketing, please click here.

Our specialist team of Chartered Surveyors across our offices offer a range of services which include, but are not limited to:

  • Appeals and mitigation on business rates liability
  • Acquisition and disposal
  • Accredited ‘Red Book’ valuations
  • Dispute resolution/expert witness work including service charges
  • Rent reviews on pubs for both landlords or tenants
  • Building advice
  • Asset reviews including disposal and acquisition advice

If you would like to discuss any of these services further, please do not hesitate to get in contact using the links below.

Frequently Asked Questions

I am thinking about selling my property but am worried about it impacting on my existing trading business?

How do I get a valuation on my holiday property?

Vickery Holman understand that having a valuation of your property and business can seem daunting, whether it be for lending purposes, tax planning or personal requirements. We will work with you to ensure the inspection is carried out at the right time and in a discrete way that doesn’t have any disrupting impact on the day to day running of the business. Our team of Leisure specialists are based in the South West and understand the local market ensuring we can value your property/business truly reflecting where it sits in its local and regional marketplace. Please contact us for an initial conversation about your valuation.

What should I think about when buying a holiday park?

Buying a holiday park is both a commercial and a lifestyle choice for many people. The market for staycations in the UK is very strong so there is an argument in favour of investing in leisure sectors that are likely to benefit from the stay at home tourists. There are many factors to consider including the location of the park, market conditions, the trading history and profitability of the business, the anticipated maintenance of the business, the prime market e.g. families or adults only and seasonal fluctuations. Vickery Holman has a growing Leisure team who understand the holiday park market. Please talk to Ollie Steer-Fowler if you are thinking of selling or buying a holiday park.

What is the market like for holiday rentals?

The market for holiday rentals in the South West is strong, with bookings for 2021 already showing limited availability in prime locations. The property market in the South West boomed in September 2020 with a resultant rise in property prices. While forecasts vary for 2021, the long term forecast for property prices remain positive. Holiday-makers will always value properties near a beach or with other facilities included, especially if holiday-makers are looking to spend more on a UK holiday than they might normally.

How do I check my business rates for a holiday park?

All business owners, including owners of holiday parks, must pay business rates. Many are currently eligible for the business rates holiday during the COVID-19 pandemic. Business rates are calculated using a rateable value. Vickery Holman has a very experienced team of business rates consultants across the South West, with a proven track record of checking and challenging business rates calculations. If we find your rateable value is excessive and you have been charged too much, the savings can be significant. Even if you have recently modernised your park, or increased the number of caravans, it would be worth having your business rates checked by a professional surveyor. Talk to our business rates specialists for Leisure here.

Do I have to pay rates on a holiday rental?

If your holiday rental property is in England and available to let for short periods that total 140 days or more per year, it will be rated as a self-catering property and valued for business rates. The Valuation Office will work out the rateable value of your property based on its type, size, location, quality, number of bed spaces and how much income you’re likely to make from letting it. If you only let one property and its rateable value is less than £15,000 you may be eligible for small business rates relief. Since business rates will eat into your profits, it is worth having your rateable value checked by our professional business rates specialists.

Tom Corser – www.tomcorser.com

Recent Success

Tresco

Acting on behalf of the Tresco Estate, Vickery Holman successfully negotiated business rates reductions across a range of their Tresco Island properties, due to the impact of the loss of the helicopter service direct to the island back in 2012. Appeals were originally submitted back in 2015 for the public house, self-catering holiday units, leisure attraction and timeshare complexes. As this was a highly complex situation, negotiated settlements were reached with the Valuation Office Agency in June 2019. As a result of the successful appeals, Vickery Holman secured a rebate to our clients of over £130,000!

Nicola Murrish, Associate & rating surveyor in the Truro office, commented “We knew the helicopter service was important to the island and we knew it had a significant impact on the island and the way they operated. The impact on the different property types varied and we had to put a robust case to the Valuation Office Agency under the grounds of ‘a material change in circumstances’ demonstrating the impact and how and why it affected the Rateable Value of premises question.”

Gill Reading, Finance Manager for the estate commented on settlement of the appeals that “we are really pleased with the outcome and appreciate all the work you have put into this.”

Any questions? Call us

Our experienced team is ready to assist with unparalleled regional advice

TRURO

Tel: 01872 245600

PLYMOUTH

Tel: 01752 261811

EXETER

Tel: 01392 203010

BRISTOL

Tel: 0117 428 6555

The Team for Leisure

Glossary

of Commercial Property Terms

Alienation – Normally refers to the transfer of a leasehold interest in property to another party – e.g. the grant or assignment of a lease, or the granting of an underlease (or sublease). Most leases will require the Landlord’s consent to such a transfer and their costs in considering the terms of the assignment or underletting to be covered by the Tenant.

Arbitration – A method of settling disputes by reference to an independent and impartial third party, usually an arbitrator is appointed by the RICS. Arbitration is essentially an adjudication of the arguments of the parties, and as such differs from Independent Expert Determination.

Assignee – A party to whom a lease has been assigned or transferred by the existing Tenant (the assignor).

Assignment – Transfer of a lease from one party to another. Once a lease has been assigned, the assignee becomes responsible to the Landlord for paying the rent and fulfilling the other obligations of the lease.

Assignor – The existing Tenant who is transferring their lease to another party (the assignee).

Assured Shorthold Tenancy (AST) – An AST is the usual form of residential letting if: you are a private Tenant with a private Landlord, the tenancy began on or after 15 January 1989 or the house or flat is let as separate accommodation and is your main home.       A tenancy will not be an AST if: the tenancy began before 15 January 1989, it is a business or holiday let, no rent or a very high rent is charged or if the landlord is a ‘resident landlord’ (e.g. they let out a room within their home).

Authorised Guarantee Agreement (AGA) – Often put in place when a Tenant assigns their lease, this requires the Assignor to sign an agreement meaning if the Assignee fails to meet their obligations under the lease (including payment of rent) then the Landlord will be able to pursue the Assignor.

Break Clause – A clause in the lease giving either or both the Landlord and Tenant the right to terminate the lease in specified circumstances, normally at a given date within the lease, such as the third anniversary of the start of the lease. It is important to diarise the dates for the break clause as notice will have to be given to the other party stating that they wish to operate the break at the correct time. Most break clauses are time sensitive in that if the date is missed, the right to exercise the break will be lost. Break clauses are often also subject to certain conditions such as all payments being up to date and the Tenant providing vacant possession.

Consumer Price Index (RPI) – Rent reviews within leases can be linked to CPI which is a measurement of consumer inflation produced by the UK’s Office for National Statistics having regard to the price level of a basket of household goods and services.

Contracting Out – An agreement between the Landlord and Tenant that the Tenant will have no right to renew the lease at the end of the contractual term and will not have any right to compensation for the same purpose. This might also be referred to as ‘outside the act’. Both parties agree that the security of tenure provisions of Part II of the Landlord and Tenant Act 1954 shall not apply.

Covenant – The word generally has two meanings: First, in the strict legal sense it refers to a clause within the lease requiring the Tenant (or Landlord) to do something or to refrain from doing something (see Restrictive Covenant). Second, it is used to denote the worth of a Tenant and hence the risk of default, which will have a bearing on the value of the lease.

Dilapidations – In simple terms they represent the exit costs for the Tenant at the end of the lease term. The cost of putting the property back into its original pre-let condition.

Energy Performance Certificate (EPC) – a commercial EPC provides an energy rating for the building which is based on the potential energy comsumption. Services such as lighting, heating and insulation are taken into account. The EPC is accompanied by a secondary Recommendation Report that provides recommendations on how the energy performance of the building could be improved.

Forfeiture – Forfeiture of a lease occurs when the Landlord exercises their right to regain possession of a property where there is a breach in a condition of the lease, or a breach of covenant.

Gross Development Value (GDV) – The estimated value that a new development or property would sell for on the open market.

Gross Yield – A measure of the return on an investment before the deduction of costs associated with the property purchase.

Heads of Terms (HOTs) – A document usually prepared by the Agent setting out the rental or sale agreement between the parties. The HOTs are sent to the solicitors to prepare the lease or sales contract.

House in Multiple Occupation (HMO) – A property where at least 3 tenants live with shared toilet, bathroom or kitchen facilities.

Independent Expert Determination – A process in which a neutral, independent third-party acts as an expert to provide a confidential and binding determination of a dispute. Different to Arbitration as the Independent Expert is not confined to the evidence presented by the parties.

International Property Measurement Standards (IPMS) – International standards providing buildings of different use classes to be measured on a like for like basis around the world.

ITZA‘In Terms of Zone A’ a method of measuring and valuing shops of different sizes and layouts based on the amount of window frontage.

Market Rent – The estimated amount for which a property should let for on the date of valuation, between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

Market Value – The estimated amount for which an asset should sell for on the date of valuation, between a willing buyer and a willing seller, in an arm’s length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

Minimum Energy Efficiency Standards (MEES) – New legislation from 1st April 2018 meaning that all properties with EPCs rated ‘F’ or ‘G’ need to be brought up to an ‘E’ rating or above before they are able to be let.

MRICS – A Member of the Royal Institution of Chartered Surveyors otherwise known as a Chartered Surveyor.

Net Internal Area (NIA) – The usable area within a building measured to the face of the internal finish of party walls and taking each floor into account. Excluding toilets, lift rooms, stair wells, entrance halls and corridors.

Net Initial Yield (NIY) – A measure of the return on an investment, the net yield takes the actual costs associated with purchasing the property into account.

Option to Purchase – An agreement made between a landlord and tenant that gives the tenant the opportunity to purchase the property. The purchase price can either be agreed in the lease or determined by a valuation or valuations at the time of purchase.

Party Wall – A shared property boundary. It can form part of a building or a garden wall. You must advise your neighbour if you want to build on or at the boundary, if you want to work on the existing party wall or structure or if you want to dig below and near to the foundation level of their property. A party wall surveyor is appointed to work on a party wall and acts independently on behalf of the wall.

Per Square Foot (PSF) – Often a rental rate or price will be applied per sq ft (or per sq metre) of space. A method used for valuing properties.

Rent Passing – The current rent that is being paid.

Retail Price Index (RPI) – Rent reviews within leases can be linked to RPI which is a measurement of consumer inflation produced by the UK’s Office for National Statistics.

Royal Institution of Chartered Surveyors (RICS) – The world’s leading professional body for qualifications and standards in land, property, infrastructure and construction.

Security of Tenure – The statutory right of a tenant to renew the lease at the end of the term. Part II of the Landlord and Tenant Act 1954 gives business tenants security of tenure. However, this can be opted out of, see ‘Contracting Out’.

Service Charge – The costs incurred by the Landlord for upkeep and maintenance to shared parts of the building or estate, which can be charged back to Tenants.

Stamp Duty Land Tax (SDLT) – A tax that is paid when purchasing property or land over a certain price in England and Northern Ireland. The current threshold for SDLT is £150,000 for non-residential land and properties. A tax is also paid when leasing a property for 7 or more years.

Subletting – Where the Tenant lets part or all of the premises to a Sub-Tenant, as permitted by the terms of the lease. It differs from assignment in that the head lessee remains responsible to the Landlord for the payment of rent and fulfilment of other obligations.

Vacant Possession (VP) – In terms of a break clause or the end of a lease, Vacant Possession requires the Tenant to ensure the property is empty on the day of completion or the break date.

Valuation Office Agency (VOA) – Business premises are assessed by the VOA for non-domestic rating purposes and each property is given a Rateable Value. Your local council uses the Rateable Value to calculate how much is paid in business rates, called the Rates Payable.