How a lot cash do vacation lets make in YOUR space?

As Britons continue to enjoy time off close to home, a holiday let property is a great way for investors to create a second income – as well as a spot for their own occasional trips away. 

But choosing the right location is crucial, and has the power to make or break their bottom lines. 

New research by holiday let marketing firm Sykes Holiday Cottages revealed the areas where investors can get the best returns – with one getting a surprise boost courtesy of Indiana Jones. 

Popular tourist destination: Holiday lets in the Cotswolds are the most lucrative

While Northumberland has a seen a surge in popularity for tourists, as the fastest growing holiday let earner last year, the Cotswolds remains the on top of the list of highest earners.

A two-bedroom holiday let property in a popular Cotswolds location such as Gloucester, Stow-on-the-Wold or Chipping Norton could net you as much as £24,700 per year, according to the data. 

Meanwhile, a larger four-bed property in the Cotswolds could earn up to £46,300 over the course of a year.

Cumbria and the Lake District come next, and could produce a tidy £44,200 for a four-bed, and £21,300 for a two-bed.

Holiday lets in the Peak District, meanwhile, 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 fail to break the £40,000 barrier for four-bed properties.

Coming in just behind the Highlands’ average income of £25,100, Northumberland is proving an increasingly popular choice with holiday-goers, as two-bed holiday rentals now bring in an average of £20,500, and up to £38,300 for four-bed properties. 

Northern powerhouse: Northumberland has risen from the 19th highest earner to seventh over the past year, according to the research by Sykes Holiday Cottages

Now ranked as the seventh highest earner, Northumberland has risen from being the 19th highest last year.

Graham Donoghue, chief executive of Sykes Holiday Cottages, added: ‘Whether it is being inspired by popular TV shows and films set in the region, such as BBC’s Vera and Indiana Jones, or the lure of its newest attractions, holidaymakers have been flocking to the region to enjoy a holiday close to home and this looks set to continue into 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 boosted visitor numbers.

Movie magic: Bamburgh castle was transformed into a second world war set for Indiana Jones and the Dial of Destiny

‘Renting out our cottage is so rewarding’  

Angie Doughty, who owns a holiday rental in Northumberland, said: ‘We first started letting our holiday cottage back in 2018, using it as a way to generate an income while also being a spot for us to enjoy holidays in from time to time.

‘I always strive to be there in person to welcome guests when they arrive. Being in the UK holiday cottage letting industry is so rewarding, knowing that families and friends alike are discovering the joys of Northumberland – from the stunning coastline to the vast variety of unspoilt countryside.’

Some areas in Northumberland have seen an even greater rise in the money they make their owners each year. 

The village of Seahouses has grown by 36 per cent in annual income, reaching £29,700, compared with £31,900 a year ago.

Meanwhile, Bamburgh has grown 25 per cent to £30,100 from £24,100, and Alnwick has increased 19 per cent to £21,800, from £18,300.

Alnmouth and Beadnell, both in Northumberland, also featured among the top ten highest growing areas for holiday lets.

Andrew Fox, chair of Visit Northumberland, added: ‘It’s great to see holiday cottage demand and yield thrive in so many different areas of Northumberland which reflects the growing interest in the amazing attractions, places, and experiences available in the county.

‘We’ve seen steady visitor number growth through our sustainable management of the destination, and we will continue to focus on driving this growth in staying visitors through our activity in 2024 and beyond.’

Holiday rental properties in Cumbria and Wales have both also seen an increase in earnings over the past few years, with income from rentals in Ambleside and Grasmere in Cumbria both having grown by 12 per cent to £32,900 and £43,100 respectively.

Betws-y-Coed in Wales has seen earnings grow by 11 per cent to £26,500.