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Owning & Investing in Holiday Homes in 2025

Written by Jamie Maltby

Is Owning a Holiday Home on the Isle of Wight Still a Smart Move in 2025?

With changing tax rules, rising costs, and new compliance standards, many people are wondering whether investing in a holiday home still stacks up in today’s market. While it might not be the effortless income stream it once was, holiday letting on the Isle of Wight remains a fantastic lifestyle investment—and one that, with the right planning, can bring both financial and emotional rewards.

Here’s why owning a holiday home here is still well worth considering:

Freedom to Escape – Whenever You Like

One of the biggest joys of holiday home ownership is the freedom to escape at a moment’s notice. No battling for peak-season availability, no compromises on location or layout—it’s your home, your way.

For many, it becomes a true family retreat, a bolt-hole for weekends away, school holidays, or longer stays in retirement. And when life is busy, there’s something deeply reassuring about knowing exactly where you’re going, and what to expect when you get there.

A Holiday Let Can Still Generate Income

Whilst tax reliefs have changed, well-presented holiday lets still generate strong income on the Isle of Wight, especially in high-demand areas. And it’s not just about the summer months—Easter, May half term, and autumn weekends often attract keen visitors.

That said, it’s important to approach letting as a managed business, rather than a passive income stream. Today’s market brings tighter licensing, energy compliance, and insurance requirements. Working with a specialist agent like Curated Spaces IOW means you can navigate these with confidence—and enjoy hands-off letting when you’re not in residence.

A Tangible, Enjoyable Investment

Unlike stocks and shares, a holiday home is a real, physical asset that you can enjoy with friends and family. Property values on the Island have historically remained steady, and in the right locations, offer strong long-term capital growth potential.

Plus, there’s nothing quite like having an investment that doubles as a place to build memories—whether it’s beach days, sailing regattas, or family BBQs in the garden.

Tax Planning Opportunities Still Exist

While some of the generous tax breaks for Furnished Holiday Lets have reduced, there are still options to explore:

Properties that meet FHL criteria may still benefit from capital allowances and other reliefs.

If your property is largely for personal use, you may be outside the business tax regime—and potentially able to claim Principal Private Residence Relief on sale.

Holiday homes can also form part of longer-term estate planning or legacy structures, where professional advice is essential.

The Emotional Value Is Immeasurable

Holiday homes aren’t just about numbers on a spreadsheet. They’re about creating a family legacy—a place your children and grandchildren grow up visiting, and where friendships are deepened over lazy weekends and sunny holidays.

Those moments of joy, relaxation and togetherness are hard to put a price on.

Control and Convenience

For regular travellers to the Isle of Wight, the convenience of having your own place is undeniable. You control the standards, the layout, and the amenities—ideal for those with pets, accessibility needs, or families looking for a stress-free break. And when you’re not using it, you can rent it out on your own terms.

So, Is It Still Worth It?

If you’re expecting a hands-off, high-return investment, a holiday home may not be the right fit. But if your goals are to:

Enjoy quality time away,

Earn a supplementary income, and

Diversify your investments with something tangible,

then owning a holiday home on the Isle of Wight remains a rewarding and achievable goal.

Key Things to Think About

What are your main goals—lifestyle, income, or legacy?

How will you structure the ownership—personal, joint, or company-held?

What does success look like for you—profit, enjoyment, or a mix of both?

If you’re weighing up your options, we’d always recommend seeking specialist advice—whether financial, legal or from an experienced letting agent. At Curated Spaces IOW, we help property owners maximise the rewards of holiday home ownership, while minimising the headaches.