The Best Places to Buy a Holiday Home in the UK

The UK travel industry has seen an uptake of people choosing UK destinations for their holidays, with bookings in 2023 8% up on 2022 according to our latest Holiday Letting Outlook Report.

With that comes a greater demand for properties being offered as holiday lets. Choosing where to buy a holiday home is one of the most important decisions you will have to make.

Now could be the perfect time to invest in a UK holiday let, but to try and reach your property's booking potential, you need to choose the right location. Compiled from our internal data, we've put together a list of the top 10 best places to buy a holiday home in the UK.

Is now a good time to buy a holiday home in the UK?

Even though we are now post-pandemic, the UK population has realised the many options they have on their doorstep.

This has driven a huge demand for more properties to offer holidaymakers a place to stay. If you're thinking of getting involved in the holiday let industry, you'll want to receive the maximum amount of bookings to ensure your venture is a success.

The biggest factor when thinking about where to buy a holiday home ought to be the popularity of the area. In this post, we highlight 10 of the most popular areas for holidays in the UK based on income potential and customer demand.

Use our Earnings Calculator to receive income projections based on location, property size and features.

1. Cotswolds

2023 booking data has revealed that the Cotswolds is currently the best place to buy a holiday home in the UK, with holiday lets in the region generating an average of £28,500 across the year - 19% more than an average UK holiday let.

With its stunning rolling hills, fascinating historic sites, quaint villages and potentially with a little help from Jeremy Clarkson, it's no surprise that tourists are flocking to this Area of Outstanding Natural Beauty for their holidays.

As well as the charm of Bourton-on-the-Water, Chipping Norton and Stow-on-the-Wold, the Cotswolds offers easy access to more bustling and action-packed hotspots including Gloucester, Cirencester and Cheltenham - with all sorts to keep holidaymakers of all interests occupied.

View the holiday homes for sale in the Cotswolds and Gloucestershire.

2. Cumbria & the Lake District

Despite being knocked off top spot by the Cotswolds, income generated by holiday lets in Cumbria and the Lake District increased year-over-year - yielding £28,200 on average in 2023.

To further showcase the area's demand, popular hotspots Ambleside and Grasmere were among the 10 locations with the biggest increase in average income on last year, both seeing a 12% rise.

Displaying some of the finest rural views, activities and charming towns the UK has to offer, it's no surprise the Lake District remains one of the best places to own a holiday let. Keen hikers can conquer England's highest peak at Scafell Pike, or one of many other walking trails, while those seeking a more relaxed escape have charming spots such as Bowness-on-Windermere, Ambleside and Keswick from which to take it all in.

With attractions to suit holidaymakers of all ages, interests and preferences, buying a holiday let in Cumbria and the Lake District could offer an excellent return on your investment.

Browse the range of holiday homes for sale in Cumbria and the Lake District.

3. Dorset

Holiday lets in Dorset generated an average of £27,000 in 2023 - 10% more than the UK average. The ever-popular coastal hotspot is up two places from last year!

With the impressive Jurassic Coast, boasting 10 Blue Flag beaches, and a range of quintessential market towns, it will come as no surprise that Dorset holiday cottages are in high demand. Located in the South West of England, Dorset offers a range of different types of holidays.

Those in search of a family holiday may prefer a coastal cottage, whereas those wishing to explore the great outdoors may prefer accommodation in the fabulous Dorset countryside. When deciding the location for your holiday cottage, you’ll want to understand which market you’re catering for and what type of accommodation and comforts they will seek.

View holiday homes for sale in Dorset.

4. Cornwall

Sstatistics from 2023 indicate that holiday rentals in Cornwall are yielding an average annual income of £26,500, and retains last year's position as the 4th best place to buy a holiday home in the UK.

Cornwall presents a multitude of reasons for being one of the best places to buy a holiday home, including access to a breathtaking coastline, sandy beaches, and rugged cliffs, offering unparalleled natural beauty and a haven for outdoor enthusiasts. Whether it's surfing, hiking, or simply enjoying a leisurely stroll along the shore, Cornwall's diverse landscape provides endless opportunities for relaxation and adventure. Overall, whether for personal enjoyment or as an investment opportunity, buying a holiday home in Cornwalloffers the perfect blend of natural beauty, cultural richness, and recreational activities, making it a truly desirable destination for holidaymakers.

Take a look at the holiday homes for sale in Cornwall.

5. Derbyshire and the Peak District

In 2023, holiday lets in the Peak District generated an average revenue of £26,500 - matching the earnings of those in Cornwall.

The Peak District became the UK’s first official National Park back in 1951, and offers relaxation in some truly breathtaking countryside. The Peak District is the 3rd most-visited National Park in the UK, making The Peaks an inviting location to own a holiday let.

With picturesque towns, such as Bakewell, Ashbourne and Matlock, the Peak District is a popular National Park with those who wish to experience the great outdoors. Throughout the year there is a variety of events that draw large numbers of visitors, from Eroica Britannia, a large, annual sporting event, to Bakewell’s Christmas market. These events could be an important factor to consider when deciding where you wish your holiday let to be in the Peaks.

View the range of holiday homes for sale in Derbyshire and the Peak District.

6. The Highlands and Islands

Based on our data, properties in the Highlands and Islands of Scotland are generating an average yearly income of £25,100 as of 2023.

When browsing the best locations to buy a holiday home in Scotland, there are lots of places to consider. With a mix of well-known attractions like Loch Ness to Skara Brae and the Cairngorms, the Highlands and Islands of Scotland offer breathtaking scenery as well as world-famous whisky!

Its wild landscapes have long been a draw for tourists all over the world, offering some of the most exciting outdoor adventures in Europe.

Steeped in historic myths and legends, places like Skara Brae and Callanish Standing Stones attract large numbers of visitors wanting to experience these ancient islands and surrounding landscapes. It's become a favourite for couples and people looking for a more secluded, rural experience.

Properties with log burners and hot tubs are very popular in this kind of location. Offering guests the best of both outdoor activities and indoor relaxation through all seasons.

Discover the holiday homes for sale in the Highlands.

7. Northumberland

In 2023, our data showed that a property in Northumberland could potentially generate an income of £25,000 per year.

Northumberland is a holiday hotspot well and truly on the rise. It has seen the greatest increase in income across the UK between 2022 and 2023, according to Sykes' Holiday Letting Outlook Report. As well as this, no less than five Northumberland destinations appeared in the top 10 UK locations with the biggest year-on-year income increase - including the likes of Seahouses, Bamburgh, Alnwick and Alnmouth.

With an exciting mix of historical landmarks, green valleys and beaches, Northumberland appeals to holidaymakers of all kinds. Home to more castles than any other county in England, Northumberland is becoming very popular with families and tourists outside the UK looking for some historical experiences alongside natural landscapes. Boat trips around the Farne Islands and Coquet Island provide an excellent wildlife experience.

From fresh fish to award-winning ice cream, there's a wide choice of local food and drink that is offered in unique locations such as castle halls and beachfront cafes, attracting millions of visitors all-year-round. With visitor numbers on the rise and an abundance of activities to suit all, you can really boast the benefits of Northumberland to your guests.

Browse holiday homes for sale in Northumberland.

8. East Anglia

Statistics in 2023 reveal that purchasing a holiday let in East Anglia could yield revenue of £24,900 annually, with the area shooting up from 18th in the list last year.

East Anglia boasts stunning natural landscapes, including beautiful coastline, picturesque countryside, and charming market towns, making it an attractive destination for holidaymakers seeking relaxation and tranquility.

From to Norwich Cathedral to Cromer Pier, along with historic landmarks, art galleries, and museums to explore, the region offers ample opportunities for leisure and recreation. East Anglia also benefits from excellent transport links, making it easily accessible from major cities like London and Cambridge. Investing in a holiday home in East Anglia can offer the potential for lucrative rental income, particularly during peak tourist seasons.

View the selection of holiday homes for sale in Norfolk.

9. South Coast

In 2023, it was found that investing in a property on the South Coast could bring in earnings of £24,500 per year.

From sandy beaches to busy seaside resorts, this beautiful 300-mile coastline has everything to offer for a great UK holiday. There's a wide range of locations, each as exciting as picturesque as the last, making the South Coast an ideal location to invest in a holiday let.

For activities such as sailing and kayaking, take a look at Lymington. It's close to a nature reserve, and has easy access to the New Forest for activities such as cycling. If you're looking to offer activity holidays for the summer months, the South Coast could be the ideal location for a holiday home.

10. North Wales

As of 2023, a property in North Wales could generate a potential annual income of £24,400.

Wales is renowned for it's wealth of historic sites, including old castles, traditional towns and beautiful, unspoilt countryside, and North Wales, in particular, has drawn huge tourists numbers of late.

With both outdoor activities such as hiking, rafting and golfing, North Wales also boasts an abundance of restaurants, cafes and historical sites to appeal to all different ages.

Many people travel to Wales for the rich heritage of railways and waterways which can be enjoyed from towns such as Betws-y-Coed and Llandudno. With year-round attractions, North Wales really can offer tourists a plethora of exciting experiences.

From wildlife found at the cliffs of Great Orme, to the arts and crafts of the seaside towns of Anglesey, North Wales is one of the thriving areas of UK travel, and could be an ideal place to own a holiday let.

Browse the holiday homes for sale in North Wales.

UK holiday let locations with the highest increase in owner income

We've compiled our data from 2023 to show the fastest-growing locations for bookings in summer:

• Seahouses, Northumberland

• Bamburgh, Northumberland

• Alnwick, Northumberland

• Alnmouth, Northumberland

• Ambleside, Cumbria

• Grasmere, Cumbria

• Betws-y-Coed, Conwy

• Bridlington, East Riding of Yorkshire