Here are 10 of the best locations in the UK for a furnished holiday let, based on rental income potential, demand, and booking trends (using recent industry data and market reports).
Top 10 UK holiday let locations (2025–2026)
1. Lake District (Cumbria)
- Top spots: Grasmere, Bowness-on-Windermere, Coniston
- Why: Year-round demand (walking, nature, staycations)
- Highest earner: Grasmere ~£43k/year
One of the most consistently profitable regions in the UK.
2. Cotswolds
- Top spots: Bourton-on-the-Water, Stow-on-the-Wold, Burford
- Why: Luxury countryside appeal + strong weekend bookings
- £40k/year in top villages
Arguably the #1 overall region for profitability.
3. Cornwall (South West England)
- Top spots: St Ives, Newquay, Carbis Bay, Crantock
- Why: Massive tourist volume + beach demand
- Cornwall had 700k+ monthly visitors in peak periods
Excellent for summer + premium pricing.
4. Devon
- Top spots: Brixham, Teignmouth, Paignton
- Why: Fast-growing staycation hotspot
- Some areas seeing 60%+ booking growth
Strong upside growth market.
5. Norfolk Coast
- Top spots: Great Yarmouth, Wells-next-the-Sea
- Why: Family holidays + traditional seaside demand
More affordable entry point with solid occupancy.
6. Suffolk Coast
- Top spot: Southwold
- £34k/year average income
- Why: Upscale coastal destination
High-end clientele + premium nightly rates.
7. Peak District (Derbyshire)
- Top spots: Castleton, Bakewell
- £34k/year in top areas
- Why: Close to major cities (Manchester, Sheffield)
Great for weekend stays + consistent occupancy.
8. Yorkshire Coast
- Top spots: Scarborough, Whitby
- Why: Classic seaside tourism + family demand
Strong seasonal income + lower property prices.
9. Pembrokeshire (Wales)
- Top spots: Saundersfoot, Tenby
- Why: Beautiful coastline + rising popularity
- Increasing bookings year-on-year
“Cornwall alternative” with less saturation.
10. London (Short-Term Lets)
- Top areas: Westminster, Central London
- Why: Huge international demand
- Nearly half of UK international bookings are in London
High occupancy—but tighter regulations.
Key insight (what makes these locations “top”)
Across all 10, the winning factors are:
- Year-round demand (Lake District, Cotswolds)
- Tourist volume (Cornwall, London)
- Weekend break proximity to cities (Peak District, Cotswolds)
- Scarcity + premium appeal (Southwold, boutique villages)
Important reality check
Not all “popular” areas are best investments:
- Some coastal hotspots are over-saturated
- Regulations on short-term lets are tightening in places like London
- Seasonality can reduce winter income in beach areas
Simple strategy
If you’re choosing one:
- Best all-round ROI: Cotswolds or Lake District
- Best growth potential: Devon or Wales
- Best cashflow (seasonal): Cornwall
- Best premium/luxury: Southwold / Cotswolds
Bottom Line:
Finding the right location is of critical importance when deciding where to have your Airbnb/holiday let. Proximity to tourist sites, public transport, contractors working on major projects, parking, etc all play n important part in choosing the right property in the right area.
If you ever require assistance at the beginning of your holiday let journey and during your research, then contact our Holiday Let Consultancy for a free, no-obligation call to see if we can assist – Help My Holiday Let
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