A recent survey revealed that 78% of UK adults plan to take a domestic overnight trip in the next 12 months1. With UK staycations still going strong and the demand for quirky accommodation to stay on the rise2, choosing the right location can make a real difference to your returns.
We’ve pulled together five of the most lucrative holiday home destinations across the UK and look at why they continue to be a big hit with investors and tourists alike.
If you’re thinking about investing in a holiday home, Cornwall has long been a favourite for many holidaymakers. It attracts over 4 million overnight visitors and roughly 14 million day-trippers every single year3. With its sweeping beaches, renowned surfing scene and picturesque seaside villages, the demand for short term holiday lets remains fairly consistent. It doesn’t hurt that it’s also one of the sunniest places in the UK4.
From an investment perspective, Cornwall offers strong rental potential, with the average income for a holiday cottage sitting at £24,6005. Larger coastal properties with luxury finishes like hot tubs, pools, saunas and even private beaches have been known to fetch up to £11,000 per week in the peak season6. It’s no surprise that the area is particularly enticing to those aiming to attract the high-net-worth market.
Another destination that offers year-round appeal is the UNESCO World Heritage Site, the Lake District. It’s one of the most popular national parks in the country and has roughly 18 million visitors each year7. From jaw-dropping hiking locations in summer to peaceful, snowy getaways in winter, the region draws in a wide range of guests and it’s a solid choice for those seeking adventure and relaxation alike.
Properties in close proximity to popular towns like Windermere, Ambleside, Grasmere and Coniston tend to perform especially well8. The average yearly revenue in Grasmere is a whopping £43,0009.
Norfolk is a great spot for holiday lets as is offers year-round booking potential and a wide array of attractions. Enchanting towns like Holt, Wells-next-the-Sea, Blackeney and Cromer offer visitors the perfect combination of natural beauty without the crowds of some of the busier destinations.
In 2025, Norfolk’s visitor economy was worth £3.4 billion annually10. While other parts of the UK saw a dip in domestic holidays, Norfolk’s overnight stays increased by 9%11. On average, holiday lets in Norfolk make £31,000, and have an occupancy rate of approximately 65%12.
The Highlands and Islands of Scotland offer some of the most dramatic, otherworldly landscapes in the UK. It’s no surprise that it’s one of the highest-earning regions for holiday lets. From lochside cabins to remote lodges, the region is a big hit with both local and international visitors attracting roughly 16.5 million overnight visitors annually13. Quirky accommodation such as lodges and cabins often do well here, and holidaymakers are happy and willing to pay.
It’s worth bearing in mind from a business perspective that you may have a few more regulatory hurdles to jump through in terms of licensing in Scotland. Another thing to consider is that there are limited properties and land available in some areas. Where you do find the right option, average annual income is roughly £28,00014.
Situated on England’s only natural UNESCO World Heritage Site, the Jurrassic Coast is a geology lover’s dream. With 95 miles of iconic cliffs, sandy beaches and easy access from London, Dorset remains a firm favourite for weekend breaks and family holidays alike.
The average annual turnover in Dorset is £26,60015. Locations such as Lyme Regis, Bournemouth and Dorchester tend to perform particularly well, with revenues ranging from £29,100 - £31,80016. The winning combination of ease of access and natural beauty helps make sure accommodation remains in demand year after year.
Sources:
Luxury Cottages in Cornwall | Luxury Self Catering in Cornwall
Top 10 locations for a holiday let in Cumbria - see where | The Westmorland Gazette
Top 10 locations for a holiday let in Cumbria - see where | The Westmorland Gazette
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