The Best Areas to Buy a Holiday Let in the UK
The fifth 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 investment companies looking to buy holiday lets in 2026.
Recent findings indicate that UK holiday homeowners earn an average of £25,600 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 25,000 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 2025 for Average Gross Turnover
Updated March 2026
Date range: Based on the latest reported average gross turnover data for 2025.
| # | Location | Average Annual Turnover |
|---|---|---|
| 1 | Grasmere, Cumbria | £45,900 |
| 2 | Castleton, Derbyshire | £38,200 |
| 3 | Bowness-on-Windermere, Cumbria | £36,200 |
| 4 | Ambleside, Cumbria | £34,800 |
| 5 | Durham, County Durham | £34,100 |
| 6 | Matlock, Derbyshire | £34,000 |
| 7 | Aldeburgh, Suffolk | £33,600 |
| 8 | Warkworth, Northumberland | £29,500 |
| 9 | Hunstanton, Norfolk | £27,200 |
| 10 | Chester, Cheshire | £25,500 |
Note: The data reflects the average gross turnover for each location in the UK for the year 2025.
Top 5 UK Regions in 2025 for Average Gross Turnover
Updated March 2026
Date range: Based on the latest reported average gross turnover data for 2025.
| # | Region | Average Annual Turnover |
|---|---|---|
| 1 | Cotswolds | £30,600 |
| 2 | Cumbria & the Lake District | £28,400 |
| 3 | Highlands & Islands | £28,000 |
| 4 | Peak District | £26,900 |
| 5 | Central Scotland | £26,600 |
Note: The data reflects the average gross turnover for each region in the UK for the year 2025.
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 £45,900 annually.
Durham and Matlock have also performed strongly in the holiday let market, with average annual earnings of £34,100 in Durham and £34,000 in Matlock, reflecting the continued popularity of city breaks and gateway locations to national parks.
Other highly profitable destinations include Lake District hotspots such as Ambleside and Bowness-on-Windermere, alongside Castleton in the Peak District, all of which continue to attract strong demand from UK holidaymakers.
Top-Earning UK Holiday Let Regions
1. Cotswolds
Average annual turnover: £30,600
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 a second home or 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. Cumbria and the Lake District
Average annual turnover: £28,400
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.
3. Highlands and Islands
Average annual turnover: £28,000
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.
4. Peak District
Average annual turnover: £26,900
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.
5. Central Scotland
Average annual turnover: £26,600
Central Scotland offers a mix of scenic countryside, historic towns and easy access to some of Scotland's most iconic landscapes.
Destinations such as Highland gateways and traditional market towns attract visitors year-round, drawn by walking, outdoor activities and cultural heritage.
Its central location and strong tourism appeal make it an attractive option for those considering buying a cottage for sale in Scotland.
6. Dorset
Average annual turnover: £26,600
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.
7. Northumberland
Average annual turnover: £25,800
Northumberland combines unspoilt coastline, historic castles and expansive countryside, offering visitors a quieter alternative to some of the UK's busier tourist destinations.
Its picturesque villages and access to beaches and national park landscapes continue to draw travellers looking for scenic getaways.
Offers strong holiday let returns and growing demand, it is an attractive option for investing in holiday homes for sale in Northumberland.
8. North Wales
Average annual turnover: £24,800
North Wales is widely recognised for its rugged mountains, dramatic coastline and outdoor adventure opportunities.
With easy access to national parks and heritage sites, the region attracts visitors seeking both active holidays and scenic retreats.
The region combines strong tourism demand with scenic landscapes, making it a smart choice for investing in holiday homes for sale in Wales.
9. Cornwall
Average annual turnover: £24,600
Cornwall remains one of the UK's most iconic holiday destinations, known for its sandy beaches, picturesque fishing villages and thriving food scene.
The region continues to draw strong visitor numbers during peak seasons as well as increasing off-season tourism.
Cornwall remains a top coastal destination, supporting demand for holiday homes for sale in Cornwall.
10. East Anglia
Average annual turnover: £24,000
East Anglia offers a blend of coastal charm, historic towns and tranquil countryside, making it a popular choice for relaxed UK getaways.
Visitors are drawn to its characterful seaside resorts and scenic landscapes, while the region's accessibility from London helps maintain consistent demand.
View the holiday homes for sale in Norfolk and holiday cottages for sale in Suffolk.
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?
- Detached houses are one of the highest earning property types, with an average annual income of £32,700
- Unique property options such as shepherd's huts, yurts and glamping pods, earning £31,800 on average
- Farm stays earn £28,900 on average per year, reflecting growing demand from travellers seeking rural escapes