As Brits continue to enjoy free time close to home, a holiday rental property is a great way for investors to generate a second income, as well as a place for their own occasional trips.
But choosing the right location is crucial and has the power to make or break your results.
New research by vacation rental marketing company Sykes Holiday Cottages revealed the areas where investors can earn the best returns, and one of them got a surprise boost courtesy of Indiana Jones.
Popular tourist destination: Cotswolds holiday rentals most lucrative
While Northumberland has seen a rise in popularity with holidaymakers, as the country with the biggest growth in holiday rentals last year, the Cotswolds continue to top the list of top earners.
According to the data, a two-bedroom holiday rental property in a popular Cotswolds location such as Gloucester, Stow-on-the-Wold or Chipping Norton could generate up to £24,700 per year.
Meanwhile, a larger four-bedroom property in the Cotswolds could generate up to £46,300 over the course of a year.
This is followed by Cumbria and the Lake District, which could yield a tidy £44,200 for a four-bed and £21,300 for a two-bed.
Meanwhile, holiday lets in the Peak District will bring in £41,100 for a four-bed, or £20,300 for a two-bed.
Dorset and Cornwall will earn £23,100 and £21,900 respectively for two beds, but will fail to break the £40,000 barrier for four-bedroom properties.
Northumberland, which sits just behind the Highlands’ median income of £25,100, is proving to be an increasingly popular choice with holidaymakers, with two-bedroom holiday lets now earning an average of £20,500, and up to £38,300. for four-bedroom properties. .
Northern powerhouse: Northumberland has risen from 19th highest earners to seventh over the past year, according to research by Sykes Holiday Cottages
Now ranked as the seventh highest earner, Northumberland has moved up from the 19th highest earner last year.
Graham Donoghue, chief executive of Sykes Holiday Cottages, added: “Whether inspired by popular TV shows and films set in the region, such as the BBC’s Vera and Indiana Jones, or by the appeal of its new attractions, tourists have been flocking to “The region will be able to enjoy a holiday close to home and it looks like this will continue until 2024.”
Northumberland has recently seen the opening of a new Anglo-Saxon museum, as well as the King Charles Coastal Path, which opened last year and may have increased visitor numbers.
Movie magic: Bamburgh Castle transformed into a Second World War set in Indiana Jones and the Dial of Destiny
‘Rent our cabin is very rewarding’
Angie Doughty, owner of a holiday let in Northumberland, said: “We started renting out our holiday home in 2018, using it as a way to generate income and at the same time as a place to enjoy holidays from time to time.”
‘I always make an effort to be there in person to greet guests when they arrive. Being in the UK holiday home rental industry is very rewarding, knowing that families and friends alike are discovering the joys of Northumberland, from the stunning coastline to the wide variety of unspoiled landscapes.’
Some areas of Northumberland have seen an even bigger increase in the money their landlords earn each year.
Seahouses village has grown 36 per cent in annual income, reaching £29,700, compared to £31,900 a year ago.
Meanwhile, Bamburgh is up 25 per cent to £30,100 from £24,100, and Alnwick is up 19 per cent to £21,800, from £18,300.
Alnmouth and Beadnell, both in Northumberland, also featured in the top ten fastest growing areas for holiday rentals.
Andrew Fox, Chairman of Visit Northumberland, added: “It’s fantastic to see demand and performance for holiday homes thriving in so many different areas of Northumberland, reflecting the growing interest in the incredible attractions, places and experiences available in the county.
“We have seen steady growth in visitor numbers through our sustainable destination management, and we will continue to focus on driving this growth in the number of staying visitors through our activity in 2024 and beyond.”
Holiday rental properties in Cumbria and Wales have also seen a rise in profits in recent years, with rental income in Ambleside and Grasmere in Cumbria growing by 12 per cent to £32,900 and £43,100 respectively.
Betws-y-Coed in Wales has seen its profits rise by 11 per cent to £26,500.
electoral money
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