As the UK holiday-let market continues to thrive, many property investors are looking to tap into the potential of short-term lets. However, not every property is suited for holiday-letting success. 

Insurance firm Pikl has suggested five best ways to identify properties that could offer high returns and consistent bookings.

1. Location – Pikl says: “When it comes to holiday-lets, location is everything. Look for areas with a strong tourist pull, whether it’s a coastal retreat, countryside escape, or a city with year-round events. Proximity to local attractions, good transport links, and amenities like shops and restaurants can also significantly boost occupancy rates. Arguably, this is the most important thing to consider.”

2. Curb Appeal and First Impressions – Pikl says: “Guests often choose properties based on first impressions from online photos, so look for homes that offer immediate visual appeal. It can be a red flag when a home doesn’t have an image of the front of the property on any booking sites, so this really can be key to securing bookings and having happy guests. Things like modern exteriors, well-maintained gardens, or unique architectural features can really make a property stand out. Remember, you can always invest in improvements, but a property having curb appeal has a huge advantage.”

3. Practical Layout and Space – “A good holiday-let doesn’t just look nice, it needs to work practically for guests. Consider properties with flexible layouts that can accommodate different group sizes, such as families or couples. Multiple bathrooms, open-plan living areas, and outdoor spaces like patios or balconies are the most important to consider. I’d say a property with only one bathroom is less likely to secure large group bookings than others, so this is essential to consider.”

4. Local Demand and Seasonality – “Before committing, research the local holiday-let market to understand demand patterns. Sites like AirDNA are excellent for this. You’ll notice that some locations, like the Cotswolds for example, tend to thrive year-round. Others may be seasonal hotspots, such as Devon and Cornwall, which become more popular in the spring to summer seasons. If you’re unsure, local letting agents can offer insight into occupancy rates and average nightly prices in the area. A property in a popular destination with steady demand can offer much more reliable returns, so it’s really important to do your research.”

5. Regulations and Insurance Requirements “It’s vital to understand the legal and insurance requirements of running a holiday-let in certain locations, especially with regular changes and restrictions being discussed in government frequently. Some councils have restrictions on short-term rentals, such as a mandatory licences, a requirement for adequate insurance to be in place, or annual nightly limits on how often you have guests.  Regulations vary across the country and frequently change, so always check for local regulations in the area before purchasing. Holiday-let insurance is also different from standard home insurance, as it covers potential insurance gaps for holiday-let owners. This type of insurance covers unique risks such as guest-related damages and liability claims if guests are injured so you’ll need to get an insurance quote on the property you are looking to buy before you purchase. Certain types of properties or buildings in specific locations may incur higher premiums or be harder to insure, so getting this quote beforehand can give you confidence that your property investment will be comprehensively protected.”