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

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    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, 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.

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      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.”

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      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.

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      Author

      Jessica Ferris

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

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