The best places to buy a holiday let in the UK

The best place to buy a holiday let in the UK is the place where strong, year-round visitor demand meets a property you can buy and run profitably, and where the local rules allow short-term letting. There is no single answer, because the right location depends on your budget, the kind of guest you want to attract and how hands-on you can be, but the factors that separate a strong holiday let location from a weak one are consistent.

This guide sets out what makes a good staycation location, the coast, country and city markets that consistently perform, the regulatory check to run before you commit, and how to finance a purchase once you have chosen an area. We arrange holiday let finance as a broker and introducer, not a lender. This is general information rather than investment advice, and demand in any single location is never guaranteed.

What makes a strong holiday let location?

Five factors matter most. First, proven year-round demand, so the property earns across more of the year than a single summer peak; areas with scenery, attractions or business travel that draw visitors in shoulder and winter seasons out-perform purely seasonal ones. Second, accessibility, because guests favour places they can reach easily by road, rail or air. Third, a clear visitor draw, whether coast, national park, heritage city or a specific attraction. Fourth, an established short-let market, which both proves demand and gives you comparable income evidence. Fifth, the regulatory position, which we return to below.

Beyond the area, the property itself has to suit the market. Features that lift income and occupancy include parking, outdoor space, a hot tub, dog-friendly policies, sea or country views and proximity to the draw that brings guests in the first place. The most useful research you can do is to study the booking platforms for the specific area, looking at the rates, occupancy and reviews that comparable properties actually achieve, alongside benchmarks such as the Sykes Staycation Index and AirDNA market data.

Coastal and rural hotspots

The South West remains the heartland of UK holiday letting. Cornwall and Devon draw consistent demand across a long season, with strong rates for properties near the coast or the main attractions, though entry prices are high and some areas have tightened second-home and short-let policy, so the regulatory check matters. The Lake District and Yorkshire Dales combine national-park scenery with year-round walking and touring demand, and Northumberland and the Yorkshire coast offer lower entry prices for similar appeal.

Wales performs well, particularly Pembrokeshire, Snowdonia and the coast, though Wales applies a 182-day actual-letting test for holiday let business rates and has given councils powers over second homes, so the rules need checking. Scotland's Highlands, islands and lochs draw strong touring and outdoor demand, but Scotland operates a short-term let licensing scheme that applies before you let. The common thread is that the best-performing coastal and rural lets combine a recognised draw with features that extend the season.

City and business-travel markets

City short lets follow a different rhythm from coastal cottages, mixing weekend leisure breaks with midweek business, contractor and relocation demand, which can smooth the seasonality that dominates rural lets. Edinburgh, Bath, York, Cambridge and the centres of the larger English cities all draw consistent visitor and business demand, and serviced apartments in these markets can perform strongly across the week and the year.

The trade-off in cities is regulation, which is tightest exactly where demand is strongest. London restricts short letting of whole homes to 90 nights a year without planning permission, Edinburgh and the rest of Scotland operate licensing, and several city authorities are actively constraining short lets through planning and control areas. A city short let can be an excellent investment, but the regulatory position is not a footnote there, it is central to whether the model works at all, which is why we always start with that check. Our serviced accommodation guide covers the city short-let model in more depth.

Run the regulatory check before you commit

Wherever you are looking, confirm that short-term letting is actually permitted and on what terms before you offer, because the rules now vary sharply across the UK and are tightening. Scotland requires a short-term let licence. Wales applies a 182-day letting test for the favourable business-rates treatment and has empowered councils on second homes. London caps whole-home short lets at 90 nights without planning permission. England is introducing a registration scheme for short-term lets, and individual councils across the UK are using planning and control areas to limit new short lets.

On top of the national and local rules, check the specific property: leases, freeholder consents, mortgage conditions and planning history can all restrict short letting regardless of the wider area's rules. A location that looks ideal on demand can be a poor choice if the regulatory position rules out or heavily constrains the model. Our holiday let rules and licensing guide walks through each scheme, and we recommend confirming the position with the relevant council and a solicitor before committing.

Financing a holiday let in your chosen area

Once you have chosen a location, the funding follows the property. Most purchases of a ready-to-let holiday property are funded with a specialist holiday let mortgage, assessed on the projected short-let income in that market and typically requiring a deposit of around 25 to 30 per cent. Lenders favour recognised holiday areas with evidenced demand, so a strong location helps the funding as well as the income.

Where the property needs work, has been bought at auction or is a conversion such as a former guest house, a bridging or development facility can fund the purchase and works, with a refinance onto a holiday let or serviced accommodation mortgage once it is lettable. We arrange all of these across specialist lenders and challenger banks, and we can issue terms in principle before you offer, which strengthens your hand in competitive holiday markets. We act as a broker and introducer, not a lender.