The Best Places to Buy a Holiday Cottage in the UK
With millions of people booking a cottage holiday in the UK last year, it’s clear that the demand for holiday cottages isn’t drying up any time soon. Beyond the Covid pandemic of 2020, where the UK saw a sharp rise in the popularity of ‘staycation’ bookings, it’s a trend that appears to have continued.
Are holiday homes a good investment?
Owning your very own holiday home has many benefits. The destination allows you to enjoy different landscapes and attractions, bring you closer to family members and friends, or provide a change of scenery if you want to escape the daily routine and work life.
Owning a second home also means that you can take a more affordable break as opposed to renting a holiday let or travelling abroad. And for some holiday home owners, there’s the option to start a business; taking advantage of the UK tourism market to earn rental income from your holiday let.
With all of this in mind, we’re taking a closer look at the most popular locations to buy a holiday home or holiday cottage.
Some quick facts and figures to set the scene
- In the UK, holiday let businesses earned an average of £24,700 in 2024, which is a slight increase on 2023’s performance of £24,500.
- In 2024, London short-term lets accounted for almost half of the total number of international visitor bookings in the UK — with Westminster being the most popular London destination.
- Back in 2023, Cornwall was the location that saw the highest volume of visitors per month (710,860) in the UK.
- 77% of British people intended to book a UK staycation in 2024.
(The figures above were sourced from Sykes Holiday Cottages research and data published by Airbnb.)
Top holiday home locations
Top rural and coastal holiday home locations in the UK
| Location | Average annual income from short-term letting |
| 1. Grasmere, Lake District | £43,200 |
| 2. Bourton-on-the-Water, Cotswolds | £40,400 |
| 3. Stow-on-the-Wold, Cotswolds | £40,000 |
| 4. Southwold, Suffolk | £34,000 |
| 5. Castleton, Derbyshire | £34,000 |
(Data above is sourced from Sykes Holiday Cottages’ Holiday Letting Outlook Report.)
#1 Grasmere (Lake District)
Situated in the heart of the Lake District, Grasmere is a hugely popular UK holiday destination, with stunning scenery, a rich history, and a peaceful village atmosphere. Because it’s surrounded by rolling hills and lakeside views, it’s a perfect spot for walkers and nature lovers. Scenic walks around Grasmere Lake and hikes up Helm Crag are highlights.
With its strong connection to the poet William Wordsworth, who called Grasmere “the loveliest spot that man hath ever found” — visitors are able to explore sites such as Dove Cottage (Wordsworth’s former home) and a dedicated Wordsworth museum.
The village itself is home to plenty of charming tearooms, traditional pubs, and independent shops.
#2 Bourton-on-the-Water (Cotswolds)
This Gloucestershire village has become a sought-after spot for holidaymakers. Often referred to as ‘the Venice of the Cotswolds’, it is situated on a wide, flat vale within the Cotswolds Area of Outstanding Natural Beauty.
It offers travellers picturesque views from its honey-coloured cottages and low-arched stone bridges at River Windrush to easily accessible attractions like the Cotswold Motoring Museum and Birdland Park & Gardens.
#3 Stow-on-the-Wold (Cotswolds)
Stow-on-the-Wold is a historical town known for its wool production. It lies on top of an 800ft hill at the junction of where the main roads through the Cotswolds cross each other.
In short, it is the quintessential English town; with its pretty Cotswold stone houses, antique shops, and impressive amenities — all of which surround the Cotswolds countryside.
#4 Southwold (Suffolk)
The seaside town of Southwold has proved to be another very popular UK holiday destination for travellers. It is, in fact, everything one might imagine an English seaside town to be; with its sandy beaches, colourful beach hut-lined promenades, and traditional amenities.
As well as this, Southwold also boasts a decent collection of independent boutiques and shops selling everything from gifts and jewellery to seasonal produce and antiques.
#5 Castleton (Derbyshire, Peak District)
Castleton is one of the most beautifully-located villages in the Peak District. Close to several natural attractions — including the mysterious ‘Mam Tor’ (Shivering Mountain) and the Great Ride’ — it is a gem of a location; tucked away from the hustle and bustle of city life.
It’s a popular place for travellers looking for a mixture of geology, history, show caves, and shops — as well as all the outdoor activities and walking routes on offer.
Top city-based holiday home locations in the UK
| Location | Average annual income from short-term letting |
| 1. Ashford, Kent | £40,716 |
| 2. Brighton and Hove | £37,968 |
| 3. Edinburgh | £35,844 |
| 4. London | £31,380 |
| 5. Bath | £26,592 |
#1 Ashford (Kent)
Dubbed a ‘garden of England’ location, Ashford is under 40 minutes from London and can provide the perfect country escape for those looking for a break from a hectic life.
It provides visitors with an attractive blend of vibrant shops, access to many independent restaurants and cafes, and a taste of peaceful countryside living with its abundance of green spaces and wildlife.
#2 Brighton and Hove (East Sussex)
For a long time, the Brighton and Hove area has been considered as one of the trendiest places in the UK; with its quirky, artsy, laid-back vibe and a plethora of local festivals, concerts, shows, and niche events to attend, all-year-round.
The area also offers a stunning 6-mile stretch of beach that includes piers, independent shops, and a large choice of eateries and bars. All in all, it’s a great location for couples, families, stag/hen parties, and trips with friends.
#3 Edinburgh (Scotland)
Aside from its world-famous cultural festivals and arts scene, Edinburgh attracts visitors from all over the world due to its rich history, vibrant atmosphere, stunning architecture, and beautiful natural surroundings.
Attractions such as the National Gallery of Scotland and Edinburgh Castle are just two of the many places travellers can go to take in some culture in the city. Add in good transport links and its diverse shops and restaurants, and it makes for an exciting place to stay, where there is always something to do or see.
#4 London
With its global status as an iconic city, London has a lot to offer potential holiday property guests — with its rich mix of history, culture, diversity, famous landmarks, and of course, shops.
On top of this, London is still very much the ‘main base’ for the financial service businesses in the UK. This means that, along with potential short-term let bookings for leisure-seeking guests, there’s an opportunity to attract a professional business audience.
#5 Bath (Somerset)
Bath remains a very popular choice for travellers when it comes to taking a short break in the UK. Beyond its obvious cultural and architectural attractions, Bath also offers great transport links to other attractive destinations, such as Cheddar Gorge, Bruton, and Frome.
More recently, Bath has seen a rise in popularity due to its connection to the TV series, Bridgerton; attracting people who want to experience a ‘Regency-style’ escape.
‘Up and coming’ UK holiday home locations
York (Yorkshire)
Average house price: £322,109
Those fascinated by the ancient will love York; with its Roman, Viking, and medieval history. Top attractions in York include York Minster, The National Railway Museum, and The Jorvik Viking Centre.
At the time of writing, York is competing for a place on UNESCO’s World Heritage List — and has made its shortlist. Being awarded this status would likely provide a big boost to its visitor numbers, and with that, holiday let demand levels too.
Whitby (North Yorkshire)
Average house price: £261,312
From its traditional fish and chips to its gothic ruins, Whitby remains a firm gem in North Yorkshire’s crown. These days, there’s more to see and experience than Whitby’s beach. Home to a fair share of its own niche festivals and events (including a Northern Soul weekender, Goth festival, and Steam Punk-themed meet-ups), there’s also a thriving beverage industry in Whitby including multiple micropubs, distilleries, and breweries.
Pembrokeshire Coast (Wales)
Average house price: £251,304
Ideal for those who love the great outdoors, Pembrokeshire Coast National Park is known for its beautiful views and rich wildlife. The area provides plenty of opportunities for hiking, seal spotting, and bird watching — as well as an array of watersports including surfing and paddleboarding.
Northumberland (North East England)
Average house price: £390,770
Sykes Holiday Cottages recently revealed that Northumberland has received a massive uptick in staycation bookings over the past few years.
Lying along the border between North East England and Scotland, Northumberland has vast areas of countryside and coastline that can be explored — as well as many fantastic beaches and lovely towns like Bamburgh and Berwick-upon-Tweed.
How the average price of a holiday home compares across the UK
The Lake District: £308,411
- Detached properties sell for an average price of £480,971
- Terraced properties sell for an average of £222,403
- Semi-detached properties sell for an average of £275,906
Cornwall: £340,350
- Detached properties sell for an average price of £474,229
- Terraced properties sell for an average of £262,326
- Semi-detached properties sell for an average of £283,050
The Suffolk Coast: £320,008
- Detached properties sell for an average price of £451,269
- Terraced properties sell for an average of £229,378
- Semi-detached properties sell for an average of £291,274
Dartmouth: £475,966
- Detached properties sell for an average price of £668,235
- Terraced properties sell for an average of £429,971
- Flats sell for an average of £428,294
Peak District: £400,811
- Detached properties sell for an average price of £590,778
- Terraced properties sell for an average of £273,096
- Semi-detached properties sell for an average of £321,358
The Norfolk Coast: £297,749
- Detached properties sell for an average price of £422,927
- Terraced properties sell for an average of £204,303
- Semi-detached properties sell for an average of £261,931
Edinburgh (including its City Centre): £334,125
- Detached properties sell for an average price of £422,927
- Terraced properties sell for an average of £204,303
- Semi-detached properties sell for an average of £261,931
(All figures above: sourced from Rightmove in March 2025)
The average distance holiday home owners travel
We calculated the average distance holiday home owners travel to reach their holiday homes. Ideally, you’ll want to be within a couple of hours so you can visit your holiday frequently.
After analysing our data, based on the ownership of nearly 1,000 holiday homes in the UK — we found that owners, on average, lived 121 miles away from where their holiday home was situated.
Average distances from a main residence to a holiday home:
- Cornwall: 220 miles
- Devon: 163 miles
- Norfolk: 88 miles
- Lake District: 176 miles
- Edinburgh: 105 miles
- Northern Ireland: 131 miles
- Peak District: 103 miles
Where to buy…..
The most profitable locations tend to be countryside destinations with year-round appeal such as the Cotswolds and Cumbria. However, in some popular towns and villages up to one in ten properties are holiday homes so competition can be strong.
The location and type of property are obviously incredibly important, but the earning potential of a holiday let is determined by the investment you make to drive bookings and maximise guest satisfaction.
Here are some useful resources that cover the different aspects associated with buying and running a holiday let:
- The ultimate guide to buying a holiday home
- Pros and cons of buying a holiday home
- How to transfer or buy a holiday let through a limited company
- How to Set up a Holiday Let & Marketing Tips to Increase Bookings
Where do you think is the best location to invest in a holiday let? Let us know in the comments below.