Should I invest in the Holiday Property Bond in 2025?
If you are looking for a different way to holiday, one that allows you to go on holidays year after year, then investing in the Holiday Property Bond could be well worth considering.
Become a Bondholder by investing in the Holiday Property Bond (HPB) and you can take your pick from over 1,500 superb villas, cottages and apartments situated at more than 30 stunning locations across the UK and Europe.
You and your family can go away at any time of year. How often you go away depends on how much you choose to invest, when you want to go away and what type of property you’d like to book.
An initial payment of as little as £5,000 not only gives you an annual holiday entitlement but also units in the HPB fund which holds the entire portfolio of villas, cottages and apartments, as well as a securities portfolio, the returns from which go towards management costs. The HPB fund has an initial charge of 25% and the fund itself pays annual charges of around 2.5% of its net assets at cost, calculated monthly, as well as overheads.
As a Bondholder, you won’t own the properties directly. Your money is invested, after charges, into the HPB fund which had net fund assets (properties and securities) of over £380 million net as at 1st January 2024. The fund has no borrowings, and never has had. It also has an independent, regulated trustee to whom your investment will be payable.
Please read the FAQs below for more information and to understand the risks as well as the benefits of an investment.
FAQs
What is the Holiday Property Bond?
The Holiday Property Bond is a financial product and is technically a life assurance bond. Its marketing and promotion require that HPB is authorised and regulated by the Financial Conduct Authority. As the Bond is a financial product, your capital is at risk and you should not expect to get back the full amount you have paid.
How much should I invest in the Holiday Property Bond and what are the charges?
The minimum initial payment is just £5,000, but the more you invest the more holiday entitlement you will have. We can help you get started with an interest-free loan of between £3,000 and £9,000, repayable in 12 equal monthly instalments (subject to a minimum cash deposit of £2,000 to £4,000). Thereafter, there is a quarterly fee of less than £38 (that is around £150 a year), linked to RPIX.
When you holiday with HPB, you pay a non-profit user charge to cover expenses like electricity, cleaning and gardening. The charge is level throughout the year. The average charge for a studio is around £360 and around £540 for a two bedroom property, for a week. Larger properties are also available.
How much you invest will depend on your own circumstances and the holidays you want. One of our representatives can explain it to you so you can make your own decision as to whether it might be right for you.
Can I see an explanation of how the investment works and what it gets me?
Of course. Watch the video below for an overview of the Holiday Property Bond given by Sue Barker CBE, a former TV presenter and HPB Bondholder.
Is the Holiday Property Bond good value?
The Holiday Property Bond is not designed to deliver monetary returns or growth. Instead, you are investing in the opportunity to enjoy high quality and exclusive self-catering holidays. Your money buys you holiday points, which you can use every year to book the HPB property of your choice. You can choose to holiday at any of HPB’s 32 locations across 13 European countries, with over 1,500 properties available – including over 600 properties in the UK.
HPB is an extremely flexible way to enjoy a wide variety of holidays. You can take your pick from our portfolio of stunning locations and holiday somewhere different every year – and at any time of year you choose. The only limitations are the availability and the amount of holiday points you have.
Your holiday entitlement is reissued to you every year and increased in-line with standard increases across the holiday points chart, meaning your holiday booking power is inflation-protected. So, if you value holidays and enjoying time with friends and family, you may well want to consider investing in the Holiday Property Bond.
How many people have invested in the Holiday Property Bond?
Today there are over 40,000 Bondholders. They come from all sorts of backgrounds but share a desire to enjoy holidays in quality properties in excellent locations.
Is it a long-term investment?
Your investment can last as long as you like. Rather than investing for growth, you are investing for the opportunity to take holiday after holiday. Your holiday benefits last for your lifetime – and could last even longer. You can use your Holiday Points to book holidays year after year and, in due course, you can pass your Bond on to your children and grandchildren. They can then enjoy the benefits of the Bond themselves, or cash it in if they prefer.
What do I get in return for my Holiday Property Bond investment?
As a Bondholder, you can access holiday benefits through our Holiday Points system. Each £1 you invest entitles you to one Holiday Point every year. Every time you book a holiday, you exchange Holiday Points for the property you want. The number of points you need will depend on the location of the property, the property size and the season. Your Holiday Points will be reissued to you every year. If you choose not to use them in one particular year, you can ‘roll them over’ to use in the following one, perhaps to secure a larger property, for example.
What’s the difference between the Holiday Property Bond and other investments?
The Holiday Property Bond is a different way to holiday and to make the most of your money. Rather than investing for growth, you are putting your money into a life assurance bond linked to a fund investing in high quality holiday property and securities. In effect, your money purchases you holiday entitlement, which you can use again and again, year after year, to book the HPB property of your choice.
For every £1 invested, you receive one Holiday Point, and your Holiday Points are reissued to you every year. So, rather than investing your money in stocks and shares, you are using it to enjoy a lifetime of exclusive holidays in comfortable and well-equipped properties, situated in some of the UK and Europe’s most beautiful locations.
Can I withdraw my investment?
Yes. You can cash in your Bond after two years for its then value, subject to deferral in exceptional circumstances. You will get back less than you invested because of the initial and annual charges, as well as other overheads and changes in the value of the fund’s properties and securities.
Why shouldn’t I just use returns from other investments to pay for my holidays?
You certainly could use other investments to pay for your holidays. The potential problem with this, of course, is that if there is a downturn in other investment markets then the return to pay for a holiday may not be there. If you have invested in HPB, then the holiday benefits will still be available regardless of the performance of the underlying HPB Fund.
Not only that, with HPB your holiday booking power remains consistent, year after year. That is because your holiday entitlement is reissued to you every year and increased in-line with standard increases across the holiday points chart, meaning your holiday booking power is inflation-protected.
You can use your holiday entitlement to book a property at any of HPB’s 32 locations across 13 European countries. There are over 1,500 available – including over 600 properties in the UK – and you can book anything from a studio apartment for two to a large, pet-friendly cottage for a gathering of the clans.
Summary: is the Holiday Property Bond a worthwhile investment?
- An investment in the Holiday Property Bond gives you access to over 1,500 holiday properties at over 30 locations across the UK and Europe
- Your investment buys you Holiday Points, which you can use every year to book the HPB property of your choice
- The Bond is a life assurance policy
- The minimum investment amount is £5,000
- You can cash in your investment after two years for its then value, subject to deferral in exceptional circumstances
- Like nearly all investment, there are charges involved
- Your holiday benefits last for your lifetime – and longer if you wish, as you can pass your Bond on to your children and grandchildren
- The Bond may be a good investment for you if you will enjoy its holiday benefits. It should not be viewed as an investment to produce financial return.
Read more about the Holiday Property Bond
Ask for your fully illustrated holiday property brochure
Please read ‘How HPB works’ and then we will be delighted to send you our brochure, including our property portfolio, and your free copy of Insight Magazine.
Browse the beautiful holiday homes and magnificent locations where you can holiday as a Bondholder.
Simply fill in and submit the form or please call our brochure request line on 0800 230 0391.
“A world away from package holidays”
Ruth PennyWe’re not what you might call ‘hobby’ people. We’re not particularly keen walkers, or avid birdwatchers. But we just love to see the world. And the Holiday Property Bond makes it possible.
