The Best Areas to Buy a Holiday Let in the UK
The fourth edition of Sykes' annual Holiday Letting Outlook Report, an in-depth analysis of the holiday letting industry, has revealed the highest-earning locations for property investors in 2025.
Despite challenging market and economic conditions, holiday letting has proven to be a resilient and profitable investment over the past 12 months, with bookings at an all-time high in 2024.
Recent findings indicate that UK holiday homeowners earn an average of £24,700 per property, making holiday letting an attractive investment option for both seasoned investors and newcomers alike.
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by Bernie Clarke - Author for Sykes Holiday Cottages
Since joining Sykes in 2021, Bernie has gained extensive knowledge in holiday let investment, regulations, and property management.
Where is the Best Place to Buy a Holiday Home?
If you're considering investing in a holiday let, now is the perfect time to take advantage of the holiday rental market.
However, with so many stunning destinations across the country, it can be challenging to determine the best places to buy a holiday home.
To help, Sykes has compiled a list of the top 10 best places to buy a holiday home in the UK, based on booking and revenue data from their 22,500 UK holiday rentals.
All the top 10 locations for earnings are based in England, with countryside spots known for their year-round appeal to short-term visitors leading the list.
Top 10 UK Locations in 2024 for Average Gross Turnover
Updated March 2025
Date range: Based on the latest reported average gross turnover data for 2024.
| # | Location | Average Annual Turnover |
|---|---|---|
| 1 | Grasmere, Cumbria | £43,200 |
| 2 | Bourton-on-the-Water, Cotswolds | £40,400 |
| 3 | Stow-on-the-Wold, Cotswolds | £40,000 |
| 4 | Coniston, Cumbria | £36,100 |
| 5 | Crantock, Cornwall | £35,600 |
| 6 | Southwold, Suffolk | £35,400 |
| 7 | Burford, Cotswolds | £34,600 |
| 8 | Castleton, Derbyshire | £34,500 |
| 9 | Bowness-on-Windermere, Cumbria | £34,450 |
| 10 | Carbis Bay, Cornwall | £34,200 |
Note: The data reflects the average gross turnover for each location in the UK for the year 2024.
Top 5 UK Regions in 2024 for Average Gross Turnover
Updated March 2025
Date range: Based on the latest reported average gross turnover data for 2024.
| # | Region | Average Annual Turnover |
|---|---|---|
| 1 | Cotswolds | £29,000 |
| 2 | Highlands & Islands | £28,200 |
| 3 | Cumbria & the Lake District | £27,000 |
| 4 | Dorset | £25,900 |
| 5 | Peak District | £25,500 |
Note: The data reflects the average gross turnover for each region in the UK for the year 2024.
Best performing locations for holiday lets over the last 12 months
Grasmere, a picturesque village in the Lake District, tops the rankings for the most profitable holiday let locations, with owners earning an average of £43,200 annually.
In the Cotswolds, two popular destinations, Bourton-on-the-Water and Stow-on-the-Wold, round out the top three, generating average annual revenues of £40,400 and £40,000, respectively, last year.
Other highly profitable Lake District destinations include Coniston and Bowness-on-Windermere, along with Burford in the Cotswolds.
Top-Earning UK Holiday Let Regions
1. Cotswolds
Average annual turnover: £29,000
The Cotswolds is a region renowned for its stunning rural charm, historic villages, and high-end appeal.
As one of the best places to buy in the UK for holiday lets, it remains popular among both domestic and international tourists. The area benefits from its proximity to major cities like London, making it a go-to destination for short getaways.
The region’s combination of natural beauty and good transport links makes it a great investment opportunity if you’re considering the cottages for sale in the Cotswolds.
2. Highlands and Islands
Average annual turnover: £28,200
The Highlands and Islands of Scotland offer some of the most picturesque landscapes in the UK, making it an ideal location for a holiday let.
The demand for cottages for sale in the Highlands has surged as visitors flock to experience the tranquility and natural beauty.
From the stunning Isle of Skye to the rugged beauty of the Scottish Highlands, this area boasts year-round appeal and offers excellent revenue potential for property investors.
3. Cumbria and the Lake District
Average annual turnover: £27,000
The Lake District continues to be one of the most popular locations for UK holiday rentals, attracting visitors year-round.
The picturesque lakes, dramatic mountains, and abundant walking trails make this an area of exceptional appeal.
The average occupancy rate is high, and with a nightly rate to match, it’s no surprise that Cumbria is one of the top three places to buy a holiday home in the UK.
Whether you’re looking for holiday homes for sale in Keswick or Ambleside, the cottages for sale in Cumbria and the Lake District can offer promising returns.
4. Dorset
Average annual turnover: £25,900
Located on the southern coast of England, Dorset is renowned for its stunning landscapes and charming coastal villages, making it an excellent destination for buying a holiday let.
The demand for cottages in Dorset has grown steadily as tourists are drawn to its unique combination of picturesque beaches, rolling hills, and historic landmarks.
From the iconic Jurassic Coast to the quaint town of Lyme Regis, the region has strong revenue potential for investors looking to buy a holiday cottage for sale in Dorset.
5. Peak District
Average annual turnover: £25,500
The Peak District’s dramatic landscapes and charming market towns have long made it a popular destination for holidaymakers. From hiking and cycling to exploring historic sites, this area provides plenty of activities for guests.
The region’s relatively high occupancy rate and competitive nightly rates make it an appealing choice for investors in the holiday rental market.
If you’re looking for holiday cottages for sale in the Peak District, this region has plenty to offer.
Highest-Earning Types of Property
Choosing the right location when buying a holiday home is essential to maximise your rental income, but selecting the right type of property is equally important.
The range of cottages for sale on the Sykes website has a great selection of potential holiday homes in desirable locations across the UK.
According to Sykes’ Holiday Letting Outlook Report, key insights can reveal the top earning property types (based on Sykes’ own booking and revenue data).
Which type of property is most profitable?
- Unique property options such as shepherd’s huts, yurts and glamping pods, earning £32,200 on average
- Detached houses are one of the highest earning property types, with an average annual income of £31,400
Holiday Lodges and Cabins
One of the standout options for holiday home investors is holiday lodges. These properties offer a fantastic combination of comfort and outdoor living, making them a popular choice for vacationers looking for a peaceful retreat.
Holiday lodges can be a highly profitable investment, especially in scenic, rural locations or near popular tourist destinations.
According to Sykes’ data, the average turnover for a holiday lodge is £12,220. The average purchase price for a lodge is typically significantly lower compared to traditional holiday cottages.
With the rise in demand for unique and luxurious getaways, investing in holiday lodges offers excellent potential for strong rental income and long-term growth.
There are also plenty of lodges for sale in the UK, providing a variety of options for those looking to invest in this booming market.
Holiday Let Management with Sykes
At Sykes Holiday Cottages, we’ve helped thousands of owners make the most of their holiday let investments, with many achieving more than 45 bookings annually.
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.
Their team handles everything from maintenance and guest communications to marketing your holiday home, allowing you to enjoy the benefits of your holiday let investment without the stress.
Enjoy a £500 welcome bonus if you let your property with Sykes between 8th March and 28th March 2025. T&Cs apply.