The picturesque Cotswolds region has clinched the title of the most lucrative area for holiday lets in the UK, according to a report by Sykes Holiday Cottages. This stunning area, known for its rolling hills and historic villages, has surpassed other popular destinations, offering property owners the highest average annual income for their rentals.
Owners of holiday lets in the Cotswolds can expect to earn an average of £28,500 per year. This figure significantly outstrips the national average, which stands at £24,500. Previously, the top spot was held by Cumbria and the Lake District, famous for their breathtaking landscapes and tourist-friendly amenities, with an average income of £28,200. However, this year they have been nudged into second place.
Close on their heels are Dorset and Cornwall, with annual incomes of £27,000 and £26,500 respectively. Other beloved holiday destinations like the Peak District and the Scottish Highlands, along with the surrounding islands, also make the top ten list, demonstrating their continued appeal to tourists and profitability for homeowners.
The Rising Popularity of Staycations
Graham Donoghue, the chief executive of Sykes Holiday Cottages, highlights the increasing trend of staycations, which has seen a surge over the past decade. More than ever, UK holiday cottages are in high demand, boosting the average annual income for their owners. Despite recent industry shifts, holiday letting continues to thrive as a profitable and fulfilling long-term investment.
“The nation’s love of holidaying at home and exploring our incredible country is going nowhere,” Donoghue said. He emphasised the importance of the holiday let market in supporting local economies, driving spending, and providing employment.
New Entrants in the Market
This year’s rankings have seen some new entrants making significant leaps. Northumberland and East Anglia, previously ranked 19th and 18th, have risen dramatically to secure the 7th and 8th spots, with average incomes of £25,000 and £24,900 respectively. This jump highlights changing preferences among holidaymakers and the potential for homeowners in these regions to capitalize on the growing market.