Is Buying a Second Home a Good Investment?

UK holiday let owners took an average of £24,700 in 2024, before costs. Income varies with location, size and features, and costs like insurance apply even when the home sits empty.

That average comes from Sykes' 2025 Holiday Letting Outlook Report. Buying a second home appeals to landlords, property investment companies and homeowners alike. If you are working out how to buy a second home, the first choice is whether it is for your own use, for letting, or both. Owners who let can hand bookings, guests and upkeep to a holiday let agency such as Sykes.

Article updated: October 2026

A row of traditional houses in the UK
A row of traditional houses in the UK

Why Buy a Second Home in the UK?

People buy a second home in the UK for one or more of these four uses:

With the right location and management, your holiday home could become a high-performing asset, offering long-term value and income potential.

Costs of Second Home Ownership

Owning a second home involves ongoing maintenance. Key costs include:

  • Insurance (especially if the property is unoccupied for extended periods)
  • Utility bills (often with standing charges even if unused)
  • Security measures (CCTV, alarms)
  • Maintenance and cleaning
  • Empty property cover (specialist insurance may be required after 60 days vacant)

Leaving a home empty also increases the risk of issues such as damp, burst pipes, vandalism, or squatting, so making regular checks is essential.

Economic and Social Impact of Unused Second Homes

A non-let second home may contribute to:

  • Reduced housing supply for locals
  • Higher local property prices
  • Strain on local economies due to seasonal occupancy
  • Potential resentment in tight-knit communities

Letting out your property helps offset these issues, supporting the local economy and providing more housing options for holidaymakers.

Choosing the Right Property for your Second Home

Choosing the right property for a second home starts with what it is for, whether that is a peaceful retreat, a base near family or a property that can generate rental income.

In many cases, a well-positioned second home in the UK can earn as much in a week as a long-term rental does in a month.

Where is the best place to buy a second home?

Based on Sykes' average gross turnover data in 2024, the highest-earning regions for buying a second home are the Cotswolds, Highlands & Islands, Cumbria & the Lake District, Dorset, and the Peak District.

Choosing a unique property type can also help bolster your income. Properties such as shepherd's huts, yurts and glamping pods earn £32,200 on average.

For more information, read the best areas to buy a holiday let in the UK.

Building a property business

Owning a Second Home for Personal Use vs Investment

Many second home buyers look to blend personal enjoyment with income potential. That means comparing location appeal with rental profitability rather than looking at either factor in isolation.

Weighing up factors such as whether the property will make a good holiday let and suit your lifestyle can make a big difference to the long-term success of your second home.

It's also important to be flexible and willing to compromise on peak-time availability to maximise rental income, as well as switching between personal use and letting easily.

Ultimately, the best place to buy a second home depends on your purpose, whether it's lifestyle, income, or a mix of both. Take time to research areas, understand local markets, and be realistic about your time, resources, and long-term goals. With the right planning, your second home can become both a sanctuary and a smart investment.

Buying a Second Home for Personal Use

If you're buying a second home primarily for yourself, family or friends, location is everything. Many people choose a spot with sentimental value. This could be a favourite holiday destination or a region they frequently travel to for work.

  • When deciding where to buy a second home for personal enjoyment, weigh up the pros
    and cons of the area.
  • Consider how much you will use the property. If it's far away or hard to reach, it may spend more time empty than enjoyed.

Buying a Second home to Rent Out

If you're buying a second home to rent out, the focus shifts from whether you love it to whether people will book or rent it.

Two things help you judge that before you buy: how many visitors the area gets, and how few homes there are to rent nearby. Judge the layout, style and location by what guests or tenants look for and by what you want the home for.

Depending on how you plan to let your second home, make sure the property complies with relevant safety, any selective licensing, and tax laws.

You'll also need to decide whether you'll maintain the property yourself or work with a holiday home management company to look after it when you're not there.

Holiday Home Management with Sykes

A holiday home management agency runs the letting for you while you're away. Sykes' service covers maintenance, guest communications and marketing your holiday home. By letting your property through a holiday let agency such as Sykes, you can maximise returns while staying compliant with regulations and benefiting from expert support. A second home can also earn income as a more traditional buy-to-let.

With over 30 years of industry expertise, Sykes provides tailored marketing strategies, expert property management, competitive rates and access to a large customer base, boosting the chances of your property being consistently booked and well-maintained.

If you're ready to begin the journey of investing in a UK second home, speak to one of the friendly advisors and let your property with Sykes today. Alternatively, browse the range of holiday homes and cottages for sale.

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