Cotswolds most profitable UK region for holiday letting
Sykes Holiday Cottages’ boss Graham Donoghue says the majority of holiday let owners have never considered exiting the market, with half of owners even contemplating buying another holiday let, despite tax changes.
The average holiday let owner is now earning an estimated £24,500 a year with the Cotswolds, topping the list of the most profitable region to own a holiday home, latest average income figures from Sykes Holiday Cottages’ UK holiday lets reveals.
With annual incomes averaging £28,500, versus a UK average of £24,500, the region has taken the top spot away from Cumbria and the Lake District (£28,200) which has dropped into second place.
HOLIDAY HOTSPOTS
Dorset (£27,000) and Cornwall (£26,500) follow closely behind in the new ranking, while other common UK holiday hotspots like the Peak District (£26,500) and the Scottish Highlands and surrounding islands (£25,100) also feature in the top 10.
Meanwhile, Northumberland (£25,000) and East Anglia (£24,900) are two new contenders to feature in the annual top ten ranking by Sykes, with these regions going from 19th and 18th position to 7th and 8th, respectively, this year.
The Holiday Letting Outlook Report 2024 analyses Sykes Holiday Cottages’ revenue data and booking figures to drill into the income potential of holiday letting in the UK.
According to a poll of 500 UK holiday homeowners commissioned for the report, 65% are worried about the recent changes introduced to the sector, with increased taxes causing the most concern.
TAX CHANGES
However, the majority (86%) of holiday let owners have never considered exiting the market, with half of owners even contemplating buying another holiday let in the future regardless of tax changes.
Elsewhere, separate research from the Professional Association of Self-Caterers also found that the potential removal of the furnished holiday let tax regime may not actually impact the majority of holiday let owners, with an estimated 57% of holiday let owners not having a mortgage on their property and therefore less likely to be impacted.
Graham Donoghue (main picture), Sykes Holiday Cottages’ Chief Executive, says: “Staycations have been growing in popularity over the past decade and right now demand for our UK holiday cottages is higher than ever, with the average annual income of a holiday let owner up as a result.
“Despite changes, it is clear that holiday letting remains a profitable and rewarding long-term business model, with the nation’s love of holidaying at home and exploring our incredible country going nowhere. The Cotswolds, in particular, has had a positive year, claiming the top spot for earnings across the UK.”
