A holiday let could be a very sound investment, providing a decent income, capital growth and – if not part of your main home – somewhere to escape to between bookings.
Although owners are concerned about potential changes such as higher taxes, a tourism levy and a licensing scheme – already under way in Scotland – it’s set to remain very lucrative. A report by Sykes Holiday Cottages has found that the average UK holiday let earned £24,500 in 2023, compared with £24,000 in 2022, and that bookings were up by 8%.
“Staycations have been growing in popularity over the past decade and demand for UK holiday cottages is higher than ever” says Graham Donoghue, CEO of Sykes Holiday Cottages. “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.” Why not get a head start by buying a property that’s already a money-spinner?
1. Tughall Steads, Chathill, Alnwick, Northumberland, £400,000
For swift access to unspoiled Northumbrian countryside, the coast and pristine sandy beaches, look no further than this charming converted barn. Includes a kitchen/dining room, spacious living room, three double bedrooms and a garden. The owners use it as a second home and rent it out for approximately half the year, turning over a very respectable £27,000 per annum. Find out more from Fine & Country.
2. Gordonhall Farmhouse, Kingussie, Inverness-Shire, offers over £565,000
This fully renovated traditional farmhouse boasts a spectacular setting in the Cairngorms National Park. It’s beautifully presented, incorporating a double-height kitchen/diner with a mezzanine floor, five bedrooms, three bathrooms, wood-lined walls, timber floors and a hot tub in the garden. Demand for short-term rentals is likely to increase due to restrictions on new holiday lets in the area. For further information, contact Galbraith.
Read more: Homes with investment potential
3. Linwood House, Bempton, East Yorkshire, £599,950
A Grade II listed Georgian house with impeccable credentials: it’s owned by the Earl of Mexborough and his wife Victoria Savile, who bought it as a holiday home and rental. Over the past four years it’s been sensitively updated and extended into the loft. You’ll find a kitchen, utility, shower room and four reception rooms on the ground floor, five ensuite bathrooms spread over the top two floors and a sunny patio and hot tub in the garden. The Yorkshire Wolds, North York Moors and Flamborough Heritage Coast are in easy reach. Via Carter Jonas.
4. Millwood Manor, Barrow-in-Furness, Cumbria, £700,000
The Lake District is a short drive from this Grade II listed property, forming a substantial wing of a high Victorian Gothic-style mansion. Accommodation includes four bedrooms, four bathrooms and three high-ceilinged reception rooms plus a wealth of period features such as bay windows, fireplaces, decorative coving and cornicing and a stained glass window that floods the entrance hall with light. A gardener’s almost certainly required as there are almost two acres to tend. Available through Finest Properties.
5. Thyme Cottage, Willersey, Near Broadway, Worcestershire, £995,000
An attractive Grade II listed stone cottage in the ever-desirable Cotswolds – the region that, according to Sykes Holiday Cottages, is the most profitable in which to own a holiday let. Upgraded in 2021, the 2,025 square feet of living space includes five bedrooms, four reception rooms and three bathrooms, along with original flagstone flooring, exposed beams, sash windows and fireplaces. Via Butler Sherborn.
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6. Rochgate Farm, Haverfordwest, Pembrokeshire, £1m
In walking distance of the beach, this five-bedroom farmhouse is packed with character and comes with three converted outbuildings that have been run as holiday lets for many years, with some guests returning again and again. The main house – one of the oldest in the village – has five bedrooms, and the holiday accommodation consists of a recently renovated two-bedroom barn and a pair of linked cottages – one with three bedrooms and the other with two. For sale through Country Living Group.
7. All Saints, South Elmham, Halesworth, Suffolk, offers over £1.1m
Purchasers seeking a change of lifestyle combined with a steady income should check out this spacious four-bedroom house as it incorporates versatile holiday lodgings in a former barn. The four apartments – a pair of one-beds and a pair of two-beds – share a communal hall and garden space and are regularly booked by families and groups for a yoga or health retreat. Find out more from Winkworth.
Read more: 11 fabulous farmhouses for rural bliss
8. Gullsway Boathouse, South Town, Dartmouth, Devon, £1.25m
Nestling on the banks of the River Dart, this detached property has been completely modernised and refurbished by the current owners, and is arranged as two separate holiday apartments that are booked throughout the year. Both have two bedrooms, open plan living areas leading out to private outside space with close-up views over the water, and there are two running moorings. Planning permission has been granted to build a luxury three-bedroom apartment with a balcony on the second floor. Contact Marchand Petit.
Watch: Airbnb owner creates unique Alice in Wonderland themed holiday home
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