If you’ve ever wondered, ‘Are holiday lets a good investment?’ or ‘How do I start an Airbnb business?’, you’re in the right place. Despite some regulatory headwinds and tax changes, the UK holiday let market continues to thrive – and with the right location and strategy, it can be a lucrative venture. In this blog, we dive into the data to uncover which locations are flourishing and delivering strong returns for investors.
At Beyond, we rely on data to drive our decisions. Our unparalleled access to and analysis of real-time, global short-term rental data powers our ability to unlock, inform, and automate action. In this blog, we have used our extensive database full of holiday let statistics – including market-leading integrations with major online travel agencies like Airbnb and Booking.com – to identify the top UK regions. All the percentages quoted are from our database and for average nightly stays in 2024.
Top UK holiday let markets
1. London: The Evergreen Performer
London continues to dominate with an impressive 65% occupancy rate and an average daily rate (ADR) of £231. With a revenue per available night (RevPAN) of £154, the capital remains a top choice for holiday let investment. Its mix of business and leisure travellers ensures steady demand year-round.
One thing to note, however, is that investors must consider the annual 90-day short-term rental limit in the capital and strategise accordingly. Many owners run their properties as both mid- and short-term rentals to navigate this regulation.
2. Isle of Skye: The Scenic Powerhouse
For those seeking a slice of natural beauty, the Isle of Skye is a standout. With a 69% occupancy rate and an ADR of £238, it boasts the highest RevPAN (£177) on our list. Its stunning landscapes and remote charm make it a magnet for travellers.
3. Manchester: The Urban Gem
Manchester surprises with a whopping 83% occupancy rate – the highest in the UK. While its ADR (£100) is lower, its RevPAN (£85) remains strong, thanks to its vibrant culture, music scene, major sports teams, and affordability. It’s a great option for hosts targeting budget-conscious travellers.
4. Cotswolds: The Quintessential Escape
The Cotswolds, with its picturesque villages and rolling hills, offers a 56% occupancy rate and an ADR of £196. Its RevPAN of £117 reflects its appeal to those seeking a tranquil countryside retreat.
5. Peak District: The Adventurer’s Haven
With an ADR of £287 – the highest on our list – the Peak District is a premium market. Its 47% occupancy rate and RevPAN of £148 make it ideal for hosts targeting high-spending guests who love outdoor activities.
Traditional and emerging markets
While the top five markets are thriving, don’t overlook traditionally strong demand destinations like the Lake District (ADR: £165), Pembrokeshire (ADR: £172), Devon (ADR: £148), and Cornwall (ADR: £169). All four locations offer stunning views and are popular with families and nature lovers. An up-and-coming holiday let location, meanwhile, is Glasgow, which boasts an ADR of £133 and occupancy of 53%.
Is a holiday let investment right for you?
The data shows that holiday lets can be a fantastic investment if you choose the right location. Whether you’re drawn to the bustling streets of London, the rugged beauty of the Isle of Skye, or the charm of the Cotswolds, there’s a market for every type of host.
If you’re wondering how to start an Airbnb business, here are some tips:
1. Research your market: use data to identify high-demand areas.
2. Understand your audience: tailor your property to attract your ideal guests.
3. Optimise pricing: use tools like Beyond to set competitive rates to boost occupancy and rates all-year-round.
4. Focus on guest experience: stellar reviews will boost your occupancy and rates.
Final thoughts
The UK holiday let market is full of opportunities, but success depends on location, strategy, and data-driven decisions. Whether you’re a seasoned host or just starting out, the key is to stay informed and adapt to market trends.
At Beyond, we’re here to help you unlock the full potential of your holiday let investment. Ready to chat to find out how we can help? Click here to schedule a demo.
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