![13 Best Places to Buy a Holiday Home in the UK [2024 Guide]](https://cms.baroncabot.com/media/posts/5l0UWq.jpg)
As real estate prices continue rising across popular destinations, more buyers are searching for the best places to buy a holiday home. According to recent statistics, more than 1 in 10 addresses are used as holiday homes in some regions of England and Wales.
The property investment experts at Baron & Cabot analysed data across the UK housing market and identified 13 locations that stand out as smart buys for your future getaway property in 2024. Balancing affordability, rental yield potential, and lifestyle perks ranging from sandy beaches to access to nature, these areas let you maximise returns while enjoying a home outside the city.
But before we dive into our findings, let’s first look into the state of the UK holiday home market to understand why investors are leaning towards this property investment strategy.
The buy-to-let market in the UK is experiencing growth. According to recent research, holiday property purchases are up by about 4.7% over the last decade. However, this upward trend was only made possible by the older generation as newer generations find it unaffordable to own a property. However, those who can afford to borrow money in the form of a mortgage and make the required cash deposits continue to seek holiday homes as a means of investment.
Several factors are fueling the rise in holiday home demand. Firstly, staycations have become increasingly popular in recent years as more Britons opt to take shorter breaks within the UK rather than going abroad — 45K+ international holiday travels in 2019 vs. 58K+ in 2022. Secondly, the short-term rental market is booming; platforms like Airbnb and HomeAway make it easy for owners to rent out their properties to holidaymakers, enabling high returns on investment.
Purchasing holiday cottages for short-term renting is a popular investment strategy. When priced right and located in a prime tourist destination, a holiday rental can generate higher returns than a traditional buy-to-let property. A short term let can conveniently generate 30% more yield than a residential property.
Holiday home investments are worth considering not only because investors can opt for a buy-to-let mortgage but also due to the good potential for high returns, especially in peak summer months. In the following section, we’ll outline 13 of the best places to invest in holiday homes across the various countries of the UK to enable you to make the right purchase.
Here is an overview of top locations to consider when seeking to purchase a holiday home in the UK.
|
Location |
Annual Visitors |
Average Property Price |
Average Rental Yield |
|
London |
30 million |
£505,000 |
4% |
|
Devon |
6 million+ |
£330,352 |
3.6–4.2% |
|
Dorset |
12.6 Million (Annual day trips) |
£393,180 |
3.67% |
|
The Peak District |
13 million+ |
£288,497 |
16.89% |
|
Northumberland |
7.79 million+ |
£205,308 |
7% |
|
Haworth |
1 million |
£200,208 |
5.4% |
|
The Isle of Skye |
600,000 |
£265,378 |
5.7–7.32% |
|
Loch Lomond |
4 million+ |
£254,132 |
5.7–7.32% |
|
Loch Ness |
1.6 million+ |
£287,435 |
5.7–7.32% |
|
Snowdonia National Park |
1.1 million |
£227,869 |
20.46% |
|
Pembrokeshire Coast National Park |
4.2 million |
£250,754 |
34.36% |
|
Isle of Anglesey |
1.71 million |
£244,938 |
11.4% |
|
The Gower Peninsula |
150,000 |
£289,146 |
3% |
If you’re looking to purchase a holiday home in England, there are several appealing locations to consider.
Some of the top spots include:
London, the bustling capital of England, is home to some of the best holiday let investments in the UK. With its iconic landmarks, world-class museums, and diverse cultural scene, there’s always something new to discover in this vibrant city. Whether you prefer the historic charm of areas like Kensington and Chelsea or the trendy vibe of Shoreditch and Park Avenue Place, London offers a wide range of neighbourhoods to choose from.
The property market in London is dynamic, and while prices can be higher, it’s a city that’s unlikely to lose its appeal. Investing in a holiday home here means you’ll have easy access to exceptional dining, shopping, and entertainment options. As a growth-conscious investor, we recommend checking out Park Avenue Place development by API Global, which is close to Times Square and Central Park — a great location for everything.
Devon in southwest England is another excellent choice to buy a holiday home. With its beautiful coastline, Dartmoor National Park, and charming towns such as Salcombe and Dartmouth, there’s something for everyone.
Whether you want a cosy seaside escape or a peaceful countryside retreat, Devon has a variety of options to suit different budgets. What’s more, the property market in Devon is stable, making it a reliable investment for your holiday home. The region’s popularity means that your investment is likely to retain its value well over time.
Nestled on the charming south coast of England, Dorset is a picturesque county with some of the best places to buy a holiday home in the UK. With its stunning beaches in places like Lyme Regis, Weymouth, and Bournemouth, as well as tranquil coastal walks, Dorset offers a peaceful escape from the hustle and bustle of city life.
Over the years, property demands in Dorset have shown steady growth, making now the best time to take advantage of this trend. Whether you’re seeking a relaxing seaside getaway or a tranquil rural haven, Dorset has a lot to offer.
The Peak District, right in the middle of England, is a magnet for people who love outdoor activities and breathtaking views. In particular, the lovely town of Buxton, nestled within the Peak District, is surrounded by beautiful moorlands and valleys.
Holiday homes in the Peak District are a good investment because they attract lots of tourists, so the value of properties stays resilient. If you’re looking for a holiday home in a place with stunning natural beauty, where outdoor adventures are right on your doorstep, the Peak District is the perfect spot for you.
In the northeast of England, you’ll find Northumberland, a county with quiet beaches, ancient castles, and the expansive Northumberland National Park. The town of Alnwick is a favourite among visitors, boasting the impressive Alnwick Castle and charming countryside.
Many people are drawn to Northumberland for its peaceful way of life and stunning natural scenery, making it an ideal place for a holiday escape. If you’re searching for the best places to buy a holiday home in the UK with a serene location, beautiful landscapes and a more relaxed pace, Northumberland is the perfect destination for your getaway.
Haworth, a delightful village in West Yorkshire, is nestled among the moors and holds a special place as the home of the famous Brontë sisters. The nearby Yorkshire Dales National Park provides a tranquil retreat with its walking paths and stunning views.
Haworth is an attractive location for literature and nature enthusiasts looking to own a holiday home. If you’re seeking a peaceful and picturesque getaway with a rich literary history, Haworth is the perfect place for your holiday home.
In England, any of these locations would make an ideal retreat to escape to for holidays and long weekends. Now, let’s see what Scotland has to offer when it comes to holiday properties.
Scotland is home to stunning natural scenery, outdoor activities galore and a thriving food scene, making it an increasingly popular holiday destination for visitors within the UK and further afield.
For those looking to invest in a holiday home, Scotland presents many attractive locations with strong growth potential, including:
The Isle of Skye is one of the best places for holiday homes in Scotland. It has wild and beautiful scenery, old castles, and lots of things to do outside, attracting many visitors.
The prices of holiday homes around the Isle of Skye have gone up a lot in the last 10 years, and they’re still rising. The lovely port town of Portree has plenty of shops, restaurants, and places to stay, while the island also has quiet spots for people who want to get away from it all.
If you’re looking for a holiday home in a place with stunning natural beauty and lots of things to do outdoors, the Isle of Skye is the perfect spot for you.
Loch Lomond is another popular hotspot for holiday homes in Scotland. With its natural beauty, Loch Lomond is a well-liked spot for holiday homes in Scotland. It’s only a short 50-minute drive from Glasgow, so you can easily get to the city while still enjoying the peaceful, natural surroundings.
Houses with views of the loch or located on quiet country roads are really sought after. There are lots of outdoor activities to do in the area, like hiking, biking, and watersports on Loch Lomond itself. If you’re looking for a holiday home in a place that’s close to a city but still has a calm, natural feel, Loch Lomond is a great choice.
The Loch Ness area is another top staycation hotspot in Scotland, making it an attractive location for those seeking where to buy a holiday home in the UK.
Inverness, the Highland capital, offers culture, dining, and nightlife to make your stay worthwhile. The world-famous Loch Ness is a major draw, with many visitors hoping to spot the legendary Loch Ness Monster. Holiday homes in picturesque waterside villages like Fort Augustus or Drumnadrochit are appealing investment opportunities in this region.
If you desire natural beauty, outdoor adventure and promising property growth, the scenic locales of Skye, Loch Lomond and the Loch Ness area should top the list of places to buy a holiday home in Scotland. Lastly, let’s explore top holiday home destinations in Wales, UK.
Wales offers some of the most stunning scenery in the UK, with 3 national parks and 1,680 miles of coastline. For those seeking an idyllic holiday home, Wales provides an abundance of choice.
Top buy-to-holiday let spots include:
Eryri (Snowdonia) National Park, spanning 823 square miles, is a haven for people who love the outdoors. It’s home to Yr Wyddfa (Mount Snowdon), the highest mountain in Wales and offers plenty of chances for climbing, hiking, sailing, and other exciting activities.
Charming stone cottages tucked away in the valleys make for a perfect starting point to discover the region. What’s more, property prices in Eryri have been going up steadily over the past 10 years, reflecting how much people want to live in and visit this area.
Pembrokeshire Coast National Park is famous for its rough sea cliffs, sandy beaches, and coastal trails, covering almost all of the Pembrokeshire coastline. Holiday homes with views of the sea are really popular, especially in lovely harbour towns like Tenby and Solva. In addition, Pembrokeshire’s mild weather makes it a great place to visit at any time of the year.
The Isle of Anglesey is a calm and beautiful island separated from mainland Wales by the Menai Strait. More than half of its coastline is marked as an Area of Outstanding Natural Beauty. The island has quiet beaches, paths for walking, old castles, and chances for sailing, playing golf, and watching birds. For those looking to invest in holiday homes, properties with views of the water or the countryside are great options to start with.
The Gower Peninsula is a stunning location in Wales with beautiful beaches and breathtaking views. This destination is popular among holiday home buyers for its natural beauty and outdoor activities, including water sports like surfing and swimming. If you want a holiday home in a place with gorgeous scenery and lots of things to do outdoors, the Gower Peninsula is a fantastic choice.
With stunning and diverse scenery, a temperate climate and lower property prices than most other parts of England, Wales presents an attractive option for purchasing a holiday home. The national parks and coastlines offer a peaceful escape in a beautiful natural setting.
So far, we’ve discussed excellent regions for holiday investment, including coastal areas and the countryside. You may be wondering which to opt for between the two choices. Keep reading as we compare holiday homes in coastal locations and cities vs the countryside.
When purchasing a buy-to-holiday let in the UK, one of the biggest decisions you will face is whether to opt for a coastal or countryside location. Both offer appealing lifestyle options, so weighing the pros and cons of each is key.
For those drawn to the sea, a coastal holiday home provides opportunities for beach activities, sailing, and swimming. The soothing sounds of the waves can have a calming effect, and sunsets over the water are picturesque. However, coastal properties often come with a premium price tag, even outside of peak tourist season. They also may feel isolated or lack amenities during off-peak months.
In contrast, a countryside holiday home offers a more rustic escape surrounded by nature. The peaceful solitude and picturesque landscapes appeal to many buyers. Rural homes also frequently have more outdoor space and lower costs of living.
However, some may find remote locations unsettling or lacking in activities. Country roads may also be difficult to navigate, especially in poor weather conditions.
When determining if a coastal or countryside holiday home is right for you, analyse your priorities and needs. If you seek an active lifestyle with beach and water sports, the coast could be ideal; for those wanting an authentic country experience, the countryside warrants consideration. And if you love the appeal of each, consider investing in properties that are a stone’s throw away from both the coast and the countryside to enjoy the best of the two worlds.
Now that you have a good idea of the best places to buy a holiday home and are ready to invest, it’s equally important to familiarise yourself with how to make the most of your investment as a buy-to-let landlord.
To optimise the return on your holiday home investment, implementing strategies to maximise your rental income is key. Several proven techniques can help boost your nightly rates and overall revenue, including advertising on multiple platforms, pricing competitively, and leveraging positive reviews.
List your property on multiple vacation rental platforms and your website to reach the widest range of potential guests. Major sites like Airbnb, Vrbo, and Booking.com charge commission fees, so also market on free listing sites and your social media channels. Cross-promote across all sites and channels to increase visibility.
Use a data-driven pricing model that adjusts rates based on seasonal demand and occupancy. Increase prices during peak seasons and holidays when demand is highest. Lower rates during off-season and mid-week to incentivise bookings.
Some platforms offer built-in pricing tools or use a third-party service to optimise your rates. Regularly review and adjust as needed based on bookings, local events, and competitors’ rates.
Encourage guests to leave reviews on all the sites and channels where you list your property. Respond to both positive and negative reviews promptly and politely. Positive reviews mentioning amenities, location, cleanliness or customer service can increase bookings by establishing your holiday home as a desirable place to stay.
Following these best practices for managing and marketing your holiday home will enable you to charge a premium, increase occupancy, and optimise your rental revenue. With the proper care and attention, your holiday buy-to-let can serve as a passive income investment for years to come.
In short, buying a holiday home is a good investment, but it comes with its challenges. If you give it the right care and attention, your holiday investment could bring considerable success. However, it’s not an easy task, and there are many factors to consider.
It’s essential to thoroughly research the market, location, and potential rental income. You also need to be prepared for the associated responsibilities and expenses, such as maintenance costs and property management fees. While a holiday home can be a rewarding investment, it requires diligence and careful planning to ensure its success.
The best places to invest in holiday homes offer great occupancy rates, average gross annual income, and long-term potential. Some top areas for investing in a holiday home in the UK include London, The Peak District, and Haworth. These popular locations offer various attractions, proximity to popular tourist spots, and the potential for significant rental income.
Additionally, areas like The Lake District and Devon, as well as cities such as Edinburgh and Bristol, also present appealing opportunities for holiday home investments. Just be sure to consult a UK property investment expert to help you make an informed decision.
The Welsh city of Swansea stands out as the cheapest place in the UK to buy a holiday home, boasting an average house price of £146,657. Its Seaside Holiday Home Index score also ranks the highest at 179, highlighting its affordability and attractiveness for those looking to invest in a holiday property.
Despite the benefits, purchasing a holiday home comes with some potential pitfalls to consider, including:
Understanding and addressing these challenges is crucial when considering buying a holiday home.
As you explore the best places to buy a holiday home in the UK, keep in mind the key factors — scenic beauty, proximity to attractions, and availability of vacation rentals. Major areas that meet these criteria in the UK include London, the Peak District, the Isle of Skye, etc. To ensure you invest in the best locations and make the most of your investment, contact Baron & Cabot today!
Disclaimer: Any information provided by Baron & Cabot does not constitute financial advice and is for educational purposes only.