Are Beach Huts a Good Investment? The Pros and Cons to Consider

Are Beach Huts a Good Investment?

Beach huts are a popular purchase for people looking to invest in property. But before you buy one, it’s important to weigh up the pros and cons so that you can make an informed decision. In this article, we will look at both the advantages and disadvantages of having a beach hut so that you can make an informed decision.

According to recent statistics, beach huts are one of the most popular property purchases in the UK. These compact seaside cabins can be a good investment if you live near the coast and want to take advantage of the summer vacation season. However, there are also some downsides to owning a beach hut that you should consider before making a decision about purchasing a beach hut.

Are beach huts a good investment?

Beach huts can be great investments, depending on where they’re located. On the south coast of England, some beach huts generate more rental yield per year than in the city of London. They generally hold their value because of the low supply and high demand factors.

What do People do with Beach Huts?

Before we dive into the pros and cons of owning a beach hut, let’s take a moment to explain what beach huts are used for. Typically, beach huts can be rented out during the summer season to tourists looking to spend some time near the coast, as the average rent is decent enough to get a good return. Beach huts are also commonly used as storage facilities for surfboards, kayaks, and other beach gear. 

Can You Make Money from a Beach Hut?

beach, beach huts, colorful

The answer to this question is yes, but there are a few things to keep in mind. First of all, the amount of money you can make will depend on where you live and how many beach huts are available in your area. You should also think about how much it costs to keep a beach hut up and running, as well as any extra fees (insurance, taxes, etc.) that might be required.

Advantages of Owning a Beach Hut

north norfolk coast

There are many advantages to owning a beach hut, including the fact that you can use it as storage for your surfboards and other beach items. Some of the other benefits of owning a beach hut include:

1. Access to prime coastal locations

The beach is one of the best places to relax, swim, and enjoy nature. With a beach hut, you can access prime coastal locations without having to worry about lugging your gear back and forth every day.

For instance, you can store your surfboard, beach towels, drink and food preparation facilities, and loungers in the hut when you’re not using it. This way, you always have quick access to everything you need for a nice chilling day at the beach.

2. Extra income from summer rentals

beach, sea, south coast

Another benefit of owning a beach hut is that you can rent it out to tourists during the summer season. Renting a beach hut can be a great way to make some extra rental income, especially if you live near a popular vacation destination.

When renting out your beach hut, you can typically earn a lot more money from tourists than you would if you were to rent it out during the rest of the year. Just be sure to research rental rates and regulations in your area before making any commitments.

3. Enjoying the outdoors all year long

Not only is owning a beach hut great for summer vacations, but it can also be a great way to enjoy the outdoors all year round. If you live near the coast, you can use your beach hut as a base for exploring the area, even when the weather isn’t ideal.

Since beach huts are typically located on or near the beach, you can also take advantage of the stunning views and fresh air. This is a great way to escape the hustle and bustle of everyday life and relax in nature.

4. Increased property value

Another advantage of owning a beach hut is that it can increase the value of your property. This is especially true if you live in an area where beach huts are in high demand. Due to relatively short supplies throughout the country, they do hold their value over the long term. 

If you eventually decide to sell your beach hut, you may be able to sell it for more than you paid for it, depending on the market conditions in your area.

5. A sense of community

Lastly, one of the best advantages of owning a beach hut is that it can foster a sense of community. Since there are usually many other huts in the area, you will likely get to know your neighbours and develop new friendships over time.

Disadvantages of Owning a Beach Hut

While there are many benefits to owning a beach hut, there are also some downsides that you need to keep in mind. Some of the main disadvantages of owning a beach hut include:

1. High maintenance costs

Since beach huts are located near the coast, they are more vulnerable to damage from harsh weather conditions, such as heavy rain and high winds. This can lead to costly repairs, which will eat into your profits if you rent the hut out.

2. Limited space and facilities

Another disadvantage of owning a beach hut is that there may not be enough space for all of your belongings. Since most huts are pretty small, you won’t have a lot of room to store your boards, camping gear, and other things you may want to keep in the hut. Some beach huts also don’t have facilities such as water and electricity, and you’re not permitted to sleep in the vast majority of them. 

3. Seasonal availability

Depending on where you live, your beach hut may only be available during certain times of the year. Some local councils only permit beach hut use in the summer months, and they are even removed from the sites for the rest of the year. This can make it difficult to plan out vacations since you may not always have convenient access to a beach hut. 

4. High upfront cost

Purchasing a beach hut is not cheap. Even though they are fairly small – the standard hut measuring just 6×6 floor area -, you’ll have to fork out a sizable amount of money to buy one. At the time of writing (Summer 2022), prices were ranging from £10,000 to £100,00. However, we found fewer than 10 beach huts for sale in England on popular websites.

Overall, there are both advantages and disadvantages to owning a beach hut. If you decide that this is the right option for your family, then take the time to research rental rates and regulations in your area so that you can make the most of your property investment.

Final Decision

So, is owning a beach hut a good investment? Ultimately, this decision comes down to personal preference and your unique circumstances. If you live near the coast and are looking for a regular summer getaway spot, then purchasing a beach hut may be a great option for you. Because it can be hard to get a hold of one, they tend to hold their value quite well. 

However, if you’re not interested in renting it out or only need access to a beach hut a few times a year, then it may not be worth the investment. Consider all of the pros and cons before making your final decision.

How Much to Buy a Beach Hut?

beach hut bricks bank holiday

If you are considering buying a beach hut, the first thing you need to figure out is how much it will cost. The beach hut rental prices can vary widely depending on factors such as location and size, so there is no one-size-fits-all answer.

Some things to consider when determining how much to spend on a beach hut include:

  • The location of the hut. Beach huts located in prime real estate near popular tourist destinations will be more expensive than those located in less desirable areas.
  • The size of the hut. Obviously, a larger hut will cost more than a smaller one.
  • What’s included with the purchase? Some beach huts come with everything you need, like a kitchen and bathroom. Other huts may require extra money for things like that.
  • The condition of the hut. If the hut has significant damage, you will probably need to spend some money on repairs before you can use it.

Ultimately, the best way to determine how much a beach hut will cost is to do your research and compare beach hut purchase prices in your area to get an idea of the property’s rental potential. Once you have an idea of how much huts are selling for, you can start looking for one that fits your budget.

Generally, a beach hut can be anywhere from £6,000 to £345,000 or more in asking price, depending on the factors mentioned above. However, if you are able to find a deal or purchase an older hut at a discount, it may be possible to get one for significantly less.