Photo of a beach in Devon with surrounding holiday lets

Holiday let property investments

Explore our holiday lets for sale in the Lake District and beyond

Furnished holiday lets or short-term lets can boost your property investment portfolio

If you’re looking to add to your property portfolio with a holiday let investment, BuyAssociation’s team of expert property investment consultants can help you find what you’re looking for.

With a focus on the UK’s most popular destinations to ensure high occupancy and strong capital growth, we can ensure you find an investment that’s secure, profitable and easy to manage. From initial consultation to transaction, we’ll make sure the whole process goes smoothly – completely free of charge.

For more information about our process, investment opportunities, or to discuss how we can help you, contact one of our experienced consultants or head to our About us page to find out more about how we operate.

Holiday lets

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photo of the high street in Kendal, a prime spot for a holiday let

What are the benefits of a holiday let investment?

  • Holiday let landlords can earn up to 30% more in short-term rental yields than a standard buy-to-let landlord may earn on an annual basis.
  • Despite the associated operating costs such as maintenance charges, furniture repairs and replacement, and utility bills, holiday lets are renowned for being reasonably cash generative.
  • Renting a holiday home to holidaymakers enables landlords to receive their earnings ahead of a guest’s scheduled stay, as the cost is paid in advance. With mobile phones making holiday booking simple, quick and easy, holiday property owners can expect to secure bookings regularly.
  • When investors are strategic in their marketing tactics, occupancy rates can be optimised through advertising via major online travel agencies or through social media platforms.
  • You could benefit from using your holiday let personally, which can be a huge benefit if you’re looking for a cheaper holiday option while still being able to take advantage of property’s income from the rest of the year.
An energy efficient holiday home in the UK

A guide to taxes for furnished holiday lets

In the past, one of the major draws of owning a furnished holiday let, aside from the exceptional income that can be generated from a well-located, high-quality property, was the tax advantages associated with the asset class.

Owners could benefit from capital allowances on numerous fixtures and furniture items, capital gains tax relief, tax-advantaged pension contributions, and more, meaning major savings on your tax bill which boosted the potential profits of the investment.

However, in April 2025, the furnished holiday let tax regime was abolished, bringing the property type more in line with standard buy-to-let properties and removing many of these advantages.

Below are some of the tax advantages that still exist:

  • Allowable expenses: Despite the end of the FHL tax regime, you can still claim certain allowable expenses for your holiday let, such as for maintenance and gardening costs, advertising and letting agency fees, insurance and accountancy fees.
  • Replacement of domestic items relief: If you need to replace domestic items that were purchased for your furnished holiday let before April 2025, there is a relief available. This could include things like moveable furniture, soft furnishings, appliances and kitchenware.
  • Small business rates relief: You may be able to claim this if your property is available for 140 days in a 12-month period, and is let for 70 days in a 12-month period.

For more detailed information on taxes and furnished holiday lets, speak to a tax expert or have a look on the UK government website.

A view of holiday homes and a lake in Cumbria

How the UK staycation property boom continues to fuel demand for short-term lets

  • The UK has seen a prolific growth in the self-catering holiday sector following the initial Covid outbreak and subsequent lockdown restrictions. During this period, holidaymakers became desperate to replace their overseas holidays in the sun with UK staycation trips. This has inspired a multitude of investors and second homebuyers to contribute their funds to the flourishing market.
  • Since then, the cost of living crisis has boosted the market further as a greater number of people looking to reduce the cost of their annual holiday are opting to stay local, pushing up demand for high-quality short-term lets.
  • Now more than ever, people are thinking of their environmental impact and carbon footprint when booking a holiday. Choosing a destination that doesn’t require getting on an aeroplane tends to be significantly more eco-friendly; and this trend looks set to increase as tackling climate change continues to be a major focus across the world.

Are holiday lets a good investment?

Furnished holiday lets can be an excellent investment choice when they are high-quality and located in areas of strong demand.

The average holiday let can bring in rental yields of more than 10% in peak season, which is one of the main attractions of the asset class. It also allows the owner to benefit from taking their own holidays there, normally during low season when the property would be most likely to be vacant.

The UK is a hugely popular holiday destination for travellers from all over the world, as well as for locals wishing to explore the beauty of their home turf. From thriving and dynamic city breaks to stunning countryside retreats, there are options to suit all preferences and requirements, making furnished holiday lets a strong option for property investors.

Like any investment, there are aspects to take into consideration when deciding whether this is the best investment type for you. By their nature, holiday lets have a much higher turnover rate than a buy-to-let, meaning most owners use a specialist company to manage their letting. There may be more administration involved, including ensuring cleaning and maintenance is up to standard, keeping an eye on user reviews to ensure a high rating, and organising ‘extra touches’ to make guests feel welcomed.

Overall, it can be a hugely beneficial way of using a well-located property to its full advantage.

holiday let properties by the seaside in the UK

The best places to buy a holiday home in the UK

Best for picturesque scenery

  • Lake District
  • Peak District
  • Cotswolds
  • Cornwall
  • Devon

Best for town and city breaks

  • Bath
  • Stratford upon Avon
  • York
  • Harrogate
  • Brighton

Best for business travellers

  • London
  • Birmingham
  • Manchester
  • Cambridge
  • Reading
  • Airport locations

Talk to us today to expand your investment portfolio with short-term let properties

At BuyAssociation, we have long-standing relationships with some of the most reputable developers and sellers in the UK, enabling us to introduce our investor clients to some of the best off-market investment opportunities.

Our team of experts specialise in identifying investment opportunities in high-demand areas, ensuring high occupancy rates and strong prospects for long-term capital growth.

If you’re interested in investing in a holiday let in the UK, or you’d like to know more about our broad range of property investment opportunities, get in touch with BuyAssociation today.