Average UK Holiday Let Owner Earns £24,500 Annually | RWinvest Skip to content

New Research Suggests Average UK Holiday Let Owner Earns £24,500

Don't miss out on the best new investment deals. Enter your details now to sign up to our mailing list and receive exclusive information straight to your inbox.

    Short-Let Accommodation Still in High Demand in the UK

    Staycations have grown in popularity recently, especially during the pandemic, when international travel was restricted. But there were worries that Brits would forget all about the charms of domestic holidaying post-pandemic. There have also been regulatory changes to the sector, including increased taxes, which may have eaten into profits for holiday let landlords.

    However, according to new research from Sykes Holiday Cottages, there’s still strong demand for short-let accommodation in the UK, and landlords are reaping the financial benefits. Many landlords have entered the sector in recent years annually, lured in by the high rental yield that can be achieved through holiday lets and the popularity of Airbnb property investment.

    The report states that bookings increased 8% year-on-year in 2023, up 71% from pre-pandemic levels.

    Further Reading: Learn more about how buy-to-let investments work with our guides and insights, which cover topics such as buy-to-let properties in London.

    Discover West One Manchester – Your Path to High-Yield Investments in 2025!

    Modern Salford living with stylish units, luxury facilities, 6% projected NET returns, and excellent capital growth. Secure your future in Manchester's booming property market now!

      Suffolk

      Holiday Let Owners Not Likely to Exit Sector Despite Tax Worries

      By looking at Sykes Holiday Cottages’ data, they have calculated that the average annual income for a UK short-let is £24,500. This is up from last year’s average income of £24,000. In vacation hotspots such as the Cotswolds, the income averages at £28,500.

      The report also polled 500 UK holiday homeowners to understand the current short-letting market further.

      While 65% of owners responded that they are worried about recent changes to the sector, 86% stated that they are likely to continue to rent out their holiday let. Half of owners said they are likely to buy another holiday let in the near future.

      Graham Donoghue, CEO of Sykes Holiday Cottages, commented: “Staycations have been growing in popularity over the past decade and right now, demand for our UK holiday cottages is higher than ever, with the average annual income of a holiday let owner up as a result. But of course, the past twelve months have been slightly different for the industry, and our latest report, therefore, also reflects how holiday let owners are feeling in light of the recent changes.

      “Despite changes, it is clear that holiday letting remains a profitable and rewarding long-term business model, with the nation’s love of holidaying at home and exploring our incredible country going nowhere. The Cotswolds, in particular, has had a positive year, claiming the top spot for earnings across the UK.”

      The UK Property Market in 2025 - What's Predicted?

      Learn whether 2025 is a good year to invest with our key predictions for the year ahead, as well as a look back on 2024 and how the market performed. Download your essential guide now!

      The Rise of City Break Short-Lets

      As mentioned, rural locations such as The Cotswolds are in demand for short-lets but aren’t the only sought-after destination for UK travellers.

      According to a report from The Standard, city breaks had overtaken beach holidays as the most popular type of trip for British travellers in 2023.

      For example, Liverpool is regularly named one of the best UK city breaks and even made Time Out’s top ten list of the best cities in the world. When it comes to the short-letting sector, there are good investment properties on the market.

      To find out more about the UK property market, take a look at our buy-to-let area guides covering available investment property in Dudley and available investment property in Bath.

      Avatar photo
      Author

      Jessica Ferris

      LinkedIn Logo Muck Rack Logo

      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

      Want to Get in Touch?

      Fill in the form to contact us today and a member of our award-winning property team will be in touch to help.

        It will be my third investment apartment with RW Invest and I cannot recommend them highly enough. Sean Orrett and Chloe Walker really do go the extra mile. Chloe in particular helped me through a particularly hard time with solicitors and all the paperwork that was involved. Living in a different country and negotiating all the nuances that come with investing, she negotiated with ease and gusto. A big thanks to you both.

        Margaret Wiele

        Daniel Stewart, has assisted me every step of the way. This is my first property purchase and so took Daniel up on his offer to guide me through every step no matter how small. I felt comforted to have his assistance in documents I needed to both understand and sign. Couldn't be happier with the help and customer care I have received so far.

        Nathan Saxon

        We highly recommend RW Invest to anyone looking for an experienced, reliable and knowledgeable professional company.
        We are more than delighted with their services throughout the entire process. They provided us with extremely helpful advice and guidance every step of the way and ensured that we understood all aspects involved in securing a property through them.

        Stephanie Chidlow

        Chloe is very helpful. She has been a great help and solved all the difficulties I had with the purchase. I am happy she was there to help with the process. Very approachable and responsible.

        Muhammad Atif

        This was my second unit purchase with RWinvest, and I found the team to be very helpful in finding the best deal which suited my needs and budget. Arjun Surana, Adam Burns were really processional in answering all questions, Excellent follow up and ensures your property purchase are smooth from the start to end and supporting throughout the purchase/exchange of contract process.
        I highly recommend anyone to purchase their property with RWinvest.

        Dhote

        Arrow left
        Arrow right
        Disclaimer Image
        Landlord News, Market & Investment Trends, UK