Holiday Cottage Investment still paying off - new figures

Northumberland is fast becoming a very profitable hotspot in the UK to own a holiday let, according to a new report from Sykes Holiday Cottages.
 
With more than five locations in the region featuring in a list of destinations with the greatest income growth between 2022 and 2023, the holiday let agency has officially declared it as one to watch.

The Holiday Lettings Outlook Report for 2024 analysed Sykes Holiday Cottages’ revenue data and booking figures to drill into the income potential of holiday letting in the UK. It revealed Seahouses in Northumberland saw the biggest growth in annual income last year, up 36% to £29,700.
 
Bamburgh was next on the list, up from £24,100 in 2022 to £30,100 in 2023, while Alnwick rounded out the top three, with annual incomes rising by an average of 19% to £21,800. Other popular tourist destinations in Northumberland such as Alnmouth and Beadnell also featured in the top 10.
 
Northumberland is now the 7th highest earning location across the UK to own a holiday let, jumping up from 19th position in last year’s edition of the report, with an average income of £25,000.
 
Sykes Holiday Cottages’ Staycation Report for 2024 has also identified it as the fastest-growing region for bookings in 2024, with booking to the agency’s holiday lets up 15% versus last year.
 
Over the past 12 months, Northumberland has seen an array of new attractions open to the public, including a multi-million-pound Anglo-Saxon Museum and brand-new distillery, while the King Charles England Coastal Path which passes through Northumberland also opened during 2023.
 
Graham Donoghue, chief executive of Sykes Holiday Cottages, says: “With a wide range of things for travellers to see and do in Northumberland – including easy access to a National Park and beaches - it isn’t surprising to see that holiday let owners are experiencing a significant increase in their bookings and annual incomes as a result.
 
“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.”
 
Angie Doughty, owner of Manor House, a holiday let based in Northumberland, says: “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.
 
“Fondly known as ‘The Secret Kingdom’, and one of the biggest counties in England, Northumberland has so much to offer people of all ages.”

Andrew Fox, Chair of Visit Northumberland, adds: “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.
 
“Northumberland provides a great opportunity for property owners whether they are based on our stunning coastline, within our tranquil landscapes or in the heart of our traditional towns and villages.
 
“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.”
 
As well as Northumberland, locations in Cumbria and Wales also experienced a significant increase in income between 2022 and 2023, including Ambleside, Grasmere, and Conwy.
 
According to the report, the average income of a UK holiday let owner now stands at £24,500, with supplementing other incomes (29%), an investment for the future (29%) and generating income during retirement (25%) all featuring amongst the top reasons why people holiday let.