The Cotswolds has been named as the best place in the UK to own a holiday let.

A report by Sykes Holiday Cottages has revealed the area as the top earning region for holiday letting, with annual incomes averaging £28,500, compared to the UK average of £24,500.

The ranking indicates a shift as the Cotswolds surpasses Cumbria and the Lake District, which falls to second place with average incomes of £28,200.


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Rounding out the top five locations are Dorset (£27,000), Cornwall (£26,500), and the Peak District (£26,500).

The report is based on an analysis of Sykes' revenue data, booking figures, a survey of holiday let owners, and expert opinions on the sector's future.

It reveals a year-on-year increase in Cotswolds bookings by nine per cent in 2023, which re-establishes the popularity of the 'staycation' destination.

Despite regulatory changes and tax increases stirring concern among 65 per cent of the 500 UK holiday homeowners surveyed, most owners (86 per cent) have no plans to exit the market.

Half are even considering adding more holiday lets to their portfolio.

Sykes' research also indicates that residents near the holiday lets widely welcome tourism.

Approximately 81 per cent of holiday let owners say residents rely somewhat on tourism, with 96 per cent believing it unlikely someone living in the area would purchase their holiday let if they did ever sell it.

CEO of Sykes, Graham Donoghue, said: "Staycations have been growing in popularity over the past decade and right now demand for our UK holiday cottages in the Cotswolds 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."

Mr Donoghue added: "At Sykes, we’re passionate about holiday letting and the benefits it brings to local economies across the country by driving spending, providing direct employment, and supporting independent businesses.

"We will continue to guide owners through their short-term let journeys, helping them to run successful holiday homes, no matter what."