Investing in a holiday let can be an exciting and lucrative opportunity – provided you choose the right location. With UK staycations booming, demand for high-quality short-term rentals continues to rise. But where should you buy to maximise your earnings?
Using the latest market insights, this blog outlines the prime locations to consider and lists the 10 most profitable regions by turnover to help you decide where to buy a holiday let in the UK and get your Airbnb business up and running. We’ve also included some links about how to use data-driven pricing strategies to help you optimise your returns – crucial for any owner who is serious about fully leveraging their investment.
Prime UK holiday let locations
The Big Smoke
In 2024, London rentals returned an impressive 65% occupancy rate and an average daily rate of £231. The UK capital benefits from year-round demand and a heady mix of business and leisure travellers. Investors should note, however, the city’s annual 90-day short-term rental limit. One way of navigating the rules is to offer a mixture of short-term and mid-term stays.
Hebrides haven
Located off the west coast of Scotland, the Isle of Skye remains a standout holiday destination. Like London, it achieved strong results last year, including a 69% occupancy rate and an average daily rate (ADR) of £238.
Mad for Manchester
Famous for football and awesome nightlife, Manchester returned a whopping 83% occupancy rate in 2024 – the highest in the UK. With a lower ADR at £100, the city remains an outstanding option for hosts targeting budget-conscious guests.
Rolling hills and strong profits
The Cotswolds remains a tremendously popular destination for staycation fans and overseas guests. With a 56% occupancy rate and an ADR of £196, investing in this area of western England remains a safe bet.
Peak performance
Ideal for hosts targeting high-spending guests who love outdoor activities, the Peak District achieved an incredibly strong ADR of £287 last year, plus an occupancy rate approaching 50%.
Top 10 UK holiday let markets by average annual turnover
Based on the latest Holiday Letting Outlook Report from Sykes Holiday Cottages, these locations offer the highest average annual turnover for holiday lets:
- Grasmere, Cumbria – £43,200
- Bourton-on-the-Water, Cotswolds – £40,400
- Stow-on-the-Wold, Cotswolds – £40,000
- Coniston, Cumbria – £36,100
- Crantock, Cornwall – £35,600
- Southwold, Suffolk – £35,400
- Burford, Cotswolds – £34,600
- Castleton, Derbyshire – £34,500
- Bowness-on-Windermere, Cumbria – £34,450
- Carbis Bay, Cornwall – £34,200
Why these locations are so profitable
Several key factors make these markets highly lucrative for holiday lets, including:
- Year-round demand: places like the Cotswolds, Cumbria, and Cornwall attract visitors in all seasons, reducing the risk of low occupancy in off-peak months.
- High daily rates: premium destinations command higher ADR, boosting overall revenue.
- Strong tourism appeal: these areas are known for stunning landscapes, historic charm, and outdoor activities, making them magnets for staycation fans and international travellers alike.
What to look for when buying a holiday let
Before investing, consider these crucial factors:
- Local regulations: some areas have restrictions on short-term lets, while others charge extra council tax to second home owners. Investors should note that to qualify as a furnished holiday let in England (the rules are different in Scotland in Wales), a property must be available for at least 182 days a year and let for a minimum of 104 days. Always check local planning laws and licensing requirements before purchasing.
- Seasonality and demand trends: use Beyond’s market insights to assess peak booking periods, expected occupancy rates, and pricing trends in your chosen location.
- Property type and amenities: homes with stunning views, hot tubs, or unique features tend to perform exceptionally well on Airbnb and other platforms. Being pet friendly – especially in rural destinations – will also help you to attract more guests.
- Competition analysis: understand the local market by analysing similar listings – Beyond’s new property analyser tool can help you evaluate potential earnings.
How to maximise your holiday let’s earnings
Investing in the right location is just the first step – maximising your revenue requires smart pricing strategies. Beyond’s dynamic pricing technology uses real-time market data to:
- Optimise nightly rates based on demand fluctuations
- Boost occupancy by adjusting pricing to attract bookings in low season
- Identify high-demand periods to maximise revenue during peak stays
Ready to invest? Analyse your potential profits now
Before making a purchase, use Beyond’s Property Analyser Tool to evaluate expected revenue, occupancy rates, and pricing trends in any location.
By leveraging market data and intelligent pricing strategies, you can confidently invest in a high-performing holiday let and maximise your earnings from day one.
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