Ever dreamed of owning a cozy seaside cottage or a countryside retreat that not only feels like a personal escape but also fills your bank account? With the UK’s staycation boom showing no signs of slowing down, 2025 is shaping up to be a golden year for holiday let investments. I’ve always been fascinated by how a well-placed property can turn a passion for travel into a profitable venture. Let’s dive into the top UK destinations where your investment could yield serious returns, and why this trend is more than just a fleeting moment.
Why Holiday Lets Are Still a Smart Bet in 2025
The UK’s love affair with staycations isn’t just a post-pandemic fad—it’s a full-blown lifestyle shift. Research shows that over 60% of Brits are planning a UK holiday in 2025, with a third making it their main getaway. Why? Maybe it’s the unpredictable weather finally cooperating, or perhaps it’s the allure of avoiding airport chaos. Whatever the reason, holidaymakers are spending big—think £1,300 per family on average this year alone. For property investors, this translates into a golden opportunity to capitalize on rental income.
The rise in domestic tourism is a game-changer for landlords looking to diversify their portfolios.
– Property investment expert
But it’s not all sunshine and rainbows. New tax rules, like the end of the furnished holiday lettings scheme and higher stamp duty, have made some investors nervous. Yet, the numbers don’t lie: holiday lets can still deliver yields that make traditional rentals look like pocket change. Let’s explore the destinations that are stealing the show and why they’re worth your attention.
Brixham, Devon: The Coastal Champion
If you’ve ever strolled along a bustling harbor with fish and chips in hand, you’ll understand why Brixham, a charming Devon fishing town, tops the list. Bookings here have skyrocketed by 62% year-on-year, according to recent data. Its colorful cottages, vibrant marina, and proximity to stunning beaches make it a magnet for holidaymakers. For investors, this means high occupancy rates and the potential for nightly rates that far outstrip traditional rentals.
Imagine owning a quaint cottage that rents for £120 a night at 70% occupancy. That’s £30,000 a year—more than double what a standard buy-to-let might earn in the same area. Sure, you’ll need to factor in maintenance and marketing, but the returns? They’re hard to ignore.
Teignmouth, Devon: The Rising Star
Not far from Brixham, Teignmouth is another Devon gem seeing a 32% surge in bookings. Its sandy beaches and laid-back vibe draw families and couples alike. What I love about Teignmouth is its balance of accessibility and charm—it’s got that small-town feel but isn’t too far off the beaten path. For investors, this translates to steady demand and the chance to tap into the coastal property market without breaking the bank.
Properties here can fetch around £100 per night, and with the right marketing, you could see occupancy rates that keep your calendar full. Curious about the numbers? A £200,000 property could generate £25,000 annually at conservative estimates. Not too shabby for a seaside investment.
Saundersfoot, Pembrokeshire: Wales’ Hidden Gem
Venture to Wales, and you’ll find Saundersfoot, a Pembrokeshire village with a 31% jump in holiday let bookings. Its golden beaches and proximity to the Pembrokeshire Coast National Park make it a haven for nature lovers. I’ve always thought there’s something magical about investing in a place where people go to escape the grind—it’s like you’re selling a slice of serenity.
Holiday lets here can command premium rates, especially during peak summer months. A modest property might bring in £110 per night, translating to a healthy rental yield of 12% or more. Plus, the local economy thrives on tourism, so you’re investing in a community that’s built to welcome visitors.
Other Hotspots to Watch
While Brixham, Teignmouth, and Saundersfoot lead the pack, other destinations are also making waves. Here’s a quick rundown of spots worth considering:
- Newborough, Anglesey: Up 30% in bookings, this Welsh island offers stunning beaches and a peaceful vibe.
- Paignton, Torbay: A 25% booking increase, with family-friendly attractions and a lively promenade.
- Porthmadog, Gwynedd: Also up 25%, this Welsh town is a gateway to Snowdonia’s adventures.
- Warkworth, Northumberland: A 25% rise, thanks to its historic castle and coastal charm.
- Bideford, Devon: Up 24%, offering a mix of riverside beauty and market-town appeal.
Each of these locations has its own unique flavor, but they share one thing: strong demand from holidaymakers. Whether you’re drawn to the rugged cliffs of Wales or the quaint villages of Devon, there’s a spot that fits your investment style.
Are Holiday Lets Worth the Hassle?
Let’s be real—holiday lets aren’t a walk in the park. Higher running costs, seasonal fluctuations, and the need for constant marketing can feel daunting. Plus, recent tax changes have some landlords second-guessing. But here’s the thing: the potential returns are hard to beat. A traditional rental might give you a 6% yield, but a holiday let? You could be looking at 13% or more, even after expenses.
Holiday lets offer a unique chance to double your returns compared to traditional rentals, provided you pick the right location.
– Real estate analyst
Take a £200,000 property as an example. A long-term let might bring in £12,000 a year. The same property as a holiday let, at 70% occupancy and £100 per night, could generate £25,000. Even with higher costs, the net profit often comes out ahead. It’s about working smarter, not harder.
Navigating the Tax Maze
Let’s talk taxes—nobody’s favorite topic, but crucial for investors. The scrapping of the furnished holiday lettings tax scheme and changes to capital gains relief have raised eyebrows. These shifts mean higher upfront costs and potentially lower profits when selling. But don’t panic. The surge in staycation demand is helping landlords offset these challenges with higher rental income.
My take? Focus on locations with year-round appeal to maximize occupancy. Places like Whitby or Keswick, which also see solo traveler bookings rise by 28%, can keep your property busy even in the off-season. It’s all about balancing the numbers and picking a spot that works for you.
Tips for Maximizing Your Holiday Let Success
Ready to jump into the holiday let game? Here are some practical tips to make your investment shine:
- Choose the Right Location: Prioritize areas with strong booking growth, like Brixham or Saundersfoot, to ensure steady demand.
- Market Like a Pro: Use high-quality photos and compelling descriptions to stand out on booking platforms.
- Price Strategically: Research local rates to find the sweet spot between affordability and profitability.
- Offer Unique Amenities: Think hot tubs, pet-friendly spaces, or eco-friendly features to attract niche markets.
- Plan for the Off-Season: Target solo travelers or remote workers to keep your property booked year-round.
These steps aren’t just about making money—they’re about creating an experience that keeps guests coming back. I’ve always believed that a happy guest is your best marketer.
The Bigger Picture: Why Staycations Are Here to Stay
The UK’s staycation trend isn’t just a blip—it’s reshaping the property investment landscape. With domestic tourism expected to pump £24 billion into the economy this summer, holiday lets are more than a side hustle; they’re a legitimate wealth-building strategy. Coastal towns, countryside escapes, and even quirky urban retreats are seeing unprecedented demand.
What’s driving this? For one, Brits are rediscovering the beauty of their own backyard. From the dramatic cliffs of Cornwall to the serene lakes of Cumbria, there’s something for everyone. Add in the rising cost of international travel, and it’s no wonder people are opting for local getaways.
The UK’s diverse landscapes and rich culture make it a staycation paradise, fueling demand for holiday rentals.
– Tourism industry expert
For investors, this means opportunity. A well-managed holiday let in a high-demand area can become a cash cow, especially if you play your cards right with pricing and marketing.
Comparing Holiday Lets vs. Traditional Rentals
Still on the fence? Let’s break it down with a side-by-side comparison:
| Investment Type | Annual Income (£200,000 Property) | Rental Yield | Key Challenge |
| Traditional Buy-to-Let | £12,000 | 6% | Lower returns |
| Holiday Let | £25,000–£30,000 | 12–15% | Higher running costs |
The numbers speak for themselves. Holiday lets require more effort, but the payoff can be significant. It’s like choosing between a steady jog and a sprint—both get you somewhere, but one’s a lot faster.
Final Thoughts: Is 2025 Your Year to Invest?
As I’ve explored these destinations, one thing’s clear: the UK’s staycation boom is a wave worth riding. Whether you’re eyeing a cottage in Brixham or a chic apartment in Whitby, the potential for passive income is real. Sure, there are hurdles—tax changes, maintenance costs, and the occasional tricky guest—but the rewards can make it all worthwhile.
So, what’s stopping you? Maybe it’s the fear of diving into something new or the worry that the market’s too crowded. But with the right strategy and a prime location, you could be sipping coffee in your own holiday let, watching the bookings roll in. The UK’s staycation scene is calling—will you answer?
