An energy efficient holiday home in the UK

Surging demand and high returns for UK short-term holiday-let investments

Short-term holiday lets are continuing to see a boom with the rise in UK staycations. Where are the best locations for holiday-let investments?

As there is still ongoing confusion revolving around international travel, the appetite for UK staycations is stronger than ever. And this summer is especially busy with a surging number of bookings.

A survey by Sykes Holiday Cottages revealed 60% of respondents suggested they will remain in the UK for the main summer break this year. After analysing booking figures, revenue data and consumer research, Sykes also highlighted a 40% uplift in holiday-let bookings throughout the summer 2021 school holidays when compared to 2019 figures.

Strong returns for short-term holiday lets

Prior to the pandemic, holiday-let owners that let their property through Sykes earned an average annual income of £21,000. This is expected to increase dramatically with the rise in bookings.

Holiday-let owners are forecast to earn an average income of £9,500 throughout July and August this year. This is a whopping 56% rise on the average summer income from the same period in 2019.

With the potential to earn more, new investor enquiries for short-term holiday lets have more than doubled in 2021 compared to two years ago. Second homeowners and investors are seeing the benefits of holiday-let investments.

Graham Donoghue, CEO of Sykes Holiday Cottages, says: “The entire travel industry has undergone tremendous changes and disruptions over the past year, but the UK staycation market has fought back, with the appetite for holidays at home now stronger than ever.

“A stronger UK staycation market will likely remain a fixture for years to come, meaning the long-term revenue opportunities for those considering entering the market now could be substantial.”

Top locations to invest in holiday lets

Location is key with any property investment but especially with short-term holiday lets. Finding sought-after locations can help investors earn strong returns.

Currently, demand for holidays in and near national parks is particularly high. Recent research suggests that national parks in the UK could have an excess of 100m visitors this year. This is providing opportunities for investors looking to buy their first holiday let or to expand their portfolio.

Analysis by Sykes Holiday Cottages revealed the Peak District is the fastest-growing holiday hotspot this summer. It’s also the most lucrative destination for holiday-let investors with an average annual revenue of £27,000.

Cumbria and the Heart of England follow closely with an average annual income of £26,000 and £25,000 respectively. Both are high up on the list of top destinations for holiday bookings this summer as well.

Additional research by mortgage broker Norton Finance revealed Snowdonia National Park and the Lake District as the top investment opportunities. The broker created a formula, which combined property prices, average monthly rental prices, gross rental yields and Google search data.

Featuring glacial lakes, rugged mountains and peaks and strong literary connections, the Lake District in Cumbria is seeing the highest average monthly search volume with 368,000. Demand is expected to remain high for short-term rentals in the Lake District in the coming months and years.

At BuyAssociation, we offer a range of property investment opportunities available on a short-term basis, including holiday-let investments in Cumbria near the Lake District. Get in touch for more information.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT