Holiday let owners earned around £24,600 in income in 2024, a rise from £24,500 in 2023, a report on the sector has found.
According to a report from Sykes Holiday Cottages, which surveyed around 500 UK holiday let owners and its booking and revenue data, the highest average gross turnover was in the Cotswolds at £29,000 and then the Highlands and Islands at £28,200.
Cumbria and the Lake District reported an average annual turnover of £27,000, followed by Dorset at £25,900 and the Peak District at £25,500.
The average income, as expected, increases with the size of the property, going from £16,500 for a one-bed property to £75,000 for six-plus bedrooms.
| 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 |
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Unique properties generate the most income, at £32,200, while detached houses earn £31,400 and farm stays can secure around £29,800.
The average annual cost of running a holiday let stands at £7,500. This includes maintenance, marketing, bills and taxes.
The average age of a holiday let owner is 39 and 9% of owners started holiday letting within the last 12 months.
Nearly half of holiday owners live within 10 miles of their property and 93% of owners have a full- or part-time job.
The report stated that there are around 3.4 times more long-term empty second homes in England than short-term rentals, and in all regions in England, long-term empty second homes outnumber holiday lets.
There are around 212,500 holiday lets in England, which accounts for 0.85% of total residential properties.
| Region | Total number of residential dwellings (ONS, 2021) | Number of short-term rentals (AirDNA) | Number of long-term vacant homes (ONS, 2024) | Number of times more vacant homes than short-term rentals | Short-term rentals as a percentage of total dwellings |
| West Midlands | 2.55 million | 12,700 | 74,900 | 5.9 | 0.5% |
| East Midlands | 2.16 million | 11,400 | 64,600 | 5.7 | 0.53% |
| East of England | 2.76 million | 17,200 | 78,500 | 4.6 | 0.62% |
| North East | 1.25 million | 8,000 | 42,600 | 5.3 | 0.64% |
| South East | 4.03 million | 25,600 | 109,400 | 4.3 | 0.64% |
| North West | 3.36 million | 22,900 | 104,000 | 4.5 | 0.68% |
| Yorkshire and the Humber | 2.48 million | 19,300 | 79,400 | 4.1 | 0.78% |
| London | 3.72 million | 46,100 | 93,600 | 2 | 1.24% |
| South West | 2.63 million | 49,300 | 72,500 | 1.5 | 1.87% |
| England total | 24.93 million | 212,500 | 719,500 | 3.4 | 0.85% |
Almost half of holiday let owners impacted by changes to sector
Nearly half of holiday let owners said they had been impacted by changes in the holiday let sector, with nearly three-quarters saying they believe the government’s crackdown on short-term lets risks local economies.
The changes that holiday let owners are most concerned about are higher rates of council tax, a tourism levy and statutory licensing scheme.
The most common changes that owners say may impact them are increased rate of council tax at 58%, new checks for safety measures at 56%, abolishment of the Furnished Holiday Letting (FHL) tax regime at 33%, increase in minimum days letting requirement to qualify for business rates at 32% and planning permission requirement for letting at 28%.
The regions most impacted by changes are Wales at 63%, London at 53% and Scotland at 52%.
The report found that around 39% of UK holiday let owners were mitigating the impact of policy changes by making their own property available for more days in the year.
A third said they had increased their weekly rates to cover growing costs, and a quarter said they had claimed for capital allowances before the FHL regime deadline.
Around 22% said they had claimed for small business rate relief and approximately 21% said they had transferred their property to a limited company.
