Top 12 UK Holiday Let Investment Locations for 2024 and 2025

Investing in holiday lets, i.e. buying a property in a desirable location and letting it for short-term stays for holidaymakers is a popular property investment strategy, but where are the best places in the UK to buy a holiday let property? Join me, Liam J Ryan, as I explore the 12 most profitable UK locations for holiday lets.

Table of Contents

Pembrokeshire Coast

Average holiday let rental yield: 34.36%

Average house price: £254,328

Pembrokeshire in West Wales is home to the Pembrokeshire Coast National Park, which offers miles of unspoilt coastline and beaches, and outdoor adventures like kayaking, canoeing, cliff-diving, and more. More sedate options like hiking, sightseeing and whale watching are also on offer, making this a highly desirable location for tourists. The Pembrokeshire coast offers an astonishing peak rental yield of 34.36% and houses modestly priced at an average of £254,328.

Snowdonia

Average holiday let rental yield: 20.46%

Average house price: £234,028

This stunning location surrounds Mount Snowdon aka Yr Wyddfa, which attracts 1.1 million visitors every year for hiking, camping, sailing and other outdoor pursuits. For those who don’t feel like roughing it in their tent with unforgiving terrain and changeable weather, the holiday let is ideal, offering cosy beds in charming stone cottages. The average rental yield for holiday lets in Snowdonia is a whopping 20.46%, making it a great investment opportunity.

The Peak District

Average holiday let rental yield: 16.89%

Average house price: £295,430

The Peak District is the oldest National Park in the UK and welcomes over 13 million tourists every year. Located in central England and spreading across 5 counties (Derbyshire, Cheshire, Staffordshire, Yorkshire and Greater Manchester), the Peak District boasts breathtaking natural landscapes from rolling hills to limestone valleys. Property prices can vary due to the sheer size of the Peak District, but some of the most popular tourist locations include Dovedale, Buxton, Bakewell, Castleton or Matlock Bath.

Scottish Highlands and Islands

Average holiday let rental yield: 11.9%

Average house price: £210,152

The Scottish Highlands and nearby islands such as Orkney are located in the Northwest of Scotland. They are ideal holiday destinations for those who enjoy rugged coastlines, wild and vast forests, mountainous regions, castles and lochs, covering about 10,000 square miles. As such, the Scottish Highlands see around 1.9 million tourists each year. The Sykes report reveals that holiday lets in the Scottish highlands yield an average of £25,100 per year, and lower-than-average property prices make for a high average rental yield of 11.9%.

Isle of Anglesey

Average holiday let rental yield: 11.4%

Average house price: £253,811

Another Welsh location, the Isle of Anglesey is connected to the mainland by two bridges and much of the coastline boasts the designation of an Area of Outstanding Natural Beauty. The Isle of Anglesey is popular with tourists who come for the picturesque coast, quiet beaches, thriving wildlife, ancient monuments and more. This relatively small island sees 1.17 million tourists each year despite its native population of just 68,000.

The Lake District

Average holiday let rental yield: 9.7%

Average house price: £290,109

On the East coast of England near Cumbria, the Lake District is home to a widely varied landscape from mountains like Scafell Pike and Helvellyn and as the name suggests, several lakes including Windemere and Wastwater. The Lake District attracts 18.1 million visitors every year, from aspiring mountain climbers to those seeking relaxation amid the picturesque surroundings. Another highly popular holiday let location, the Lake District was named 2nd highest earning region by Sykes in 2024. With an average house price of £290,109 and an average holiday let income of £28,200, Lake District properties can expect an average rental yield of 9.7%.

Cornwall

Average holiday let rental yield: 7.8%

Average house price: £338,516

Cornwall is a popular holiday destination in England thanks to its miles and miles of coastline, sandy welcoming beaches, exceptionally warm weather and rugged cliffsides. Cornwall is incredibly popular with surfers and is home to the Eden Project, a large-scale botanical garden that houses over 1000 plant species in specially built biomes. This alluring location’s holiday lets make an average profit of £26.500 per year, giving an average rental yield of 7.8%.

Southend-on-Sea, Essex

Average holiday let rental yield: 7.2%

Average house price: £355,708

This resort town on the Thames estuary is a popular weekend gateway for Londoners and other locals and boasts good transport links, attractions such as amusement parks and a vibrant seafront pier. According to Sykes’s holiday let rental income calculator, investors can expect an average of £25,580 per year from a holiday let in Southend-on-Sea.

Northumberland

Average holiday let rental yield: 7%

Average house price: £208,033

Northumberland is between Scotland and England, bordering Tyne and Wear and County Durham to the south and Cumbria to the West. This rural location is the least densely populated county in England but in 2023, over 10 million tourists came to Northumberland National Park, making it a great place for holiday lets. Northumberland is home to scenic countryside, nature reserves, and historic sites like Hadrian’s Wall and Lindisfarne Castle.

The Cotswolds

Average holiday let rental yield: 7%

Average house price: £406,968

The Cotswolds, another Area of Natural Beauty in Southwest England between Swindon and Gloucester is a long-time favourite UK holiday destination that spans 800 square miles. Its holiday lets are some of the most profitable in terms of yearly income – according to a report from Sykes, investors can see a profit of up to £28,500 per year. The higher-than-average house prices do bring the rental yield percentage down somewhat, but there’s no denying the longstanding appeal of the area with tourists – an estimated 38 million visit the Cotswolds every year.

Dorset

Average holiday let rental yield: 6.7%

Average house price: £397,702

Located in Southwest England, Dorset is a popular tourist destination which welcomes 1.8 million staying tourists every year and even more day trip tourists. Dorset’s incredible coastline, aka the Jurassic Coast, features landmarks like Durdle Door and ‘fossil forest’ Lulworth Cove. Dorset also contains the bustling city of Bournemouth, so visitors can choose between a busy coastal town or a more rural dwelling. According to Sykes’s report, Dorset holiday lets made an average of 27,000 profit in 2023. 10% more than the UK average, and this trend is likely to continue over the rest of 2024 and 2025.

Norfolk Coast

Average holiday let rental yield: 8.6%

Average house price: £306,564

Norfolk is on the East coast of England and has several seaside resorts at Great Yarmouth, Cromer and Hunstanton, as well as being home to the Norfolk Boards National Park, bird and sea life sanctuaries, plus many forests and woods. Sykes holiday let earnings calculator suggests average earnings from a Norfolk property to be £26,562. With average property prices in the area currently at £306,564, Mofrolk holiday lets could offer an average rental yield of 8.6%.

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