Popular towns and villages in the Cotswolds and Cumbria are among the best places in the UK to own a holiday let, according to a new industry report by Sykes Holiday Cottages.
The Cotswolds is the UK region in which owners generate the most gross income overall, with the average owner in the area earning £29,000 in 2024, up £500 year-on-year.
Looking at the UK average, holiday let businesses generated an income of £24,700 last year – slightly up on 2023 (£24,500), despite tougher economic conditions.
The Lake District village of Grasmere tops the overall location rankings, with holiday let business there now earning £43,200 on average annually.
Meanwhile, two popular destinations in the Cotswolds, Bourton-on-the-Water and Stow-on-the-Wold, make up the top three, with owners in these villages generating an average of £40,400 and £40,000, respectively, last year.
The Holiday Letting Outlook Report is based on an analysis of bookings and revenue data for 22,500 UK holiday rentals let through Sykes. All of the locations which feature in the top 10 for earnings are within England, with countryside spots that have year-round appeal for short bookings dominating the list.
Other Lake District holiday destinations such as Coniston and Bowness-on-Windermere, and Burford in the Cotswolds, are also among the most profitable places to own a holiday let.
Southwold in Suffolk and Castleton in Derbyshire are new additions to this year’s top 10, ranking sixth and eighth and with an average annual gross revenue last year in excess of £34,000.
James Shaw, Managing Director of Sykes Holiday Cottages, says:“Staycation bookings are strong – particularly to regions like the Lake District and the Cotswolds that are appealing for short breaks all year round, which translates into higher earnings for owners.
“Location is obviously incredibly important in the earning-potential of holiday lets, but other small investments and decisions can drive additional income too, including accepting short mid-week stays, adding a hot tub and allowing pets – these are all things we advise our owners on.
“Despite significant change in the industry, the findings throughout our report show the resilience of the holiday let market, with average incomes up last year. The owners we speak to are feeling good about the future and their prospects within the sector, but many say they have already been affected by new rules and regulations introduced.”
To read the full Holiday Letting Outlook Report 2025, visit: https://www.sykescottages.co.uk/letyourcottage/advice/article/holiday-letting-outlook-report-2025
Top 10 UK locations in 2024 for average gross turnover:
| Location | Average annual turnover | |
| 1 | Grasmere, Cumbria | £43,200 |
| 2 | Bourton-on-the-Water, Cotswolds | £40,400 |
| 3 | Stow-on-the-Wold, Cotswolds | £40,000 |
| 4 | Coniston, Cumbria | £36,100 |
| 5 | Crantock, Cornwall | £35,600 |
| 6 | Southwold, Suffolk | £35,400 |
| 7 | Burford, Cotswolds | £34,600 |
| 8 | Castleton, Derbyshire | £34,500 |
| 9 | Bowness-on-Windermere, Cumbria | £34,450 |
| 10 | Carbis Bay, Cornwall | £34,200 |
Top 5 UK regions in 2024 for average gross turnover:
| Region | Average annual turnover | |
| 1 | Cotswolds | £29,000 |
| 2 | Highlands & Islands | £28,200 |
| 3 | Cumbria & the Lake District | £27,000 |
| 4 | Dorset | £25,900 |
| 5 | Peak District | £25,500 |
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