Most Profitable Holiday Lets in the UK: Top 10 Revealed

Discover the most profitable locations in Britain for holiday lets, with Cornwall leading the way. Find out why many top spots are not near the coast. Explore the latest analysis and booking trends in this lucrative market.

The latest analysis has unveiled the most lucrative locations in Britain for holiday lets, and surprisingly, many of them are not situated near coastal areas. Cornwall, a popular choice for staycations, has secured the top spot with an average nightly rate of £84 for a room and £117 for an entire house. Last summer, the region saw a staggering 476,910 bookings through prominent holiday rental companies, resulting in a total booking value of £40 million between July and September. Interestingly, the majority of the top ten locations are situated in inner London, as indicated by the research findings.

Among the top ten places, several areas in London, including Westminster, claimed prominent positions. Westminster, in second place, commands an average rental price of £133 per night for a room and £435 for a house. With 304,790 holiday let bookings, the area in London's west end generated a revenue of £34,441,270 during the summer period last year. The calculations were based on data from popular platforms like Airbnb, Booking.com, and the Expedia Group, with figures sourced from the Office for National Statistics. Rental prices were derived from Airbnb listings across 388 British towns, and the total revenue was calculated by multiplying the number of nights with the nightly room rate on Airbnb. It's important to note that the revenue figures do not factor in operational costs such as maintenance and property prices.

Overall, the data suggests that the British holiday rental market raked in an impressive £739,211,390 during the summer of 2023. As investors consider entering the holiday lets market, careful financial planning and location analysis are crucial to making informed decisions. The recent Budget announcement by Chancellor Jeremy Hunt revealed the discontinuation of tax relief for furnished holiday lets, aimed at promoting long-term rentalavailability. Despite these changes, experts in the sector emphasize the sustained demand for holiday rentals.

The trend of staycations has been on the rise over the past decade, with a surge in demand for UK holiday cottages. Popular locations like Yorkshire, Cumbria, and Cornwall continue to attract significant interest, with an 11% increase in bookings across the UK during the current Easter school holidays. This heightened demand bodes well for holiday let owners, who have navigated through various challenges. Despite industry shifts, holiday letting remains a profitable and fulfilling long-term business venture.

The British holiday rental market showcases a diverse landscape of profitable locations, from coastal retreats to urban hubs. As the industry evolves, staying abreast of market changes and adapting to new regulations is essential for sustained success.