Holiday letting in 2026: What the data from Sykes Cottages actually shows
- Jun 12
- 5 min read
If you want to understand the state of UK holiday letting right now, the best place to start is the data – and few organisations have more of it than Sykes Holiday Cottages. Rachel Brennan, who works with Sykes's owner network, joined the Holiday Let Insider podcast to share what the numbers are actually showing in 2026.
How much are UK holiday let owners actually earning?
The headline figure from Sykes's Outlook Report: the average UK holiday let earns around £25,600 per year. That's up almost £1,000 year-on-year – a steady, consistent increase that suggests the market remains fundamentally strong despite wider economic pressures.
But the average only tells part of the story. Sykes has top-performing properties earning £100,000, £150,000, even £170,000 per year – and Rachel is clear that this doesn't happen by accident.
"It's done by really clever calendar management – some get over 52 bookings a year, so multiple bookings in a week. Really smart pricing. And making sure you've got a marketing powerhouse behind you, with all of that working in harmony."
The key isn't any single tactic. It's the combination: the right platforms, used at the right time, alongside intelligent pricing and maximum availability.
What should you set aside for running costs for holiday letting in 2026?
Before calculating profit, owners need to account for costs – and Rachel's rule of thumb is straightforward: set aside around 50% of gross earnings to cover them.
Those costs include agency commission, marketing, cleaning, maintenance, breakages, utilities, and tax. The remaining 50% represents income – but that's before any mortgage repayments are factored in, which can significantly alter the picture depending on individual circumstances.
"Running it as a business can help you plan for those upfront costs. Just making sure you've put enough aside."
For anyone new to holiday letting, building that 50% buffer into your projections from day one avoids the common mistake of treating gross rental income as net profit.
Which UK regions are performing best?
The Cotswolds has taken the number one spot for the second year running in terms of revenue. The Lake District and Cumbria came in second, with the Scottish Highlands and Islands dropping to third.
But Rachel highlights some interesting movement in the rankings. City centre locations are showing strong year-on-year growth – Chester in particular, alongside the Yorkshire Dales and the Peak District. What these locations have in common is their central position relative to major population centres, making them easily accessible for short breaks.
"We're seeing an increase in short breaks and last-minute bookings. What we call staycation snacking – getting away for a couple of nights within a couple of hours of home."
For owners in these locations, that trend has real implications for how they manage their calendar. Shorter minimum stays and flexible availability windows can unlock a significant slice of last-minute demand that a rigid weekly booking structure would miss entirely.
Where is supply not meeting demand?
New property listings at Sykes are up 61% – a significant increase. But Rachel notes that many of these aren't yet live: some owners are still at the inquiry and planning stage, dipping a toe in rather than committing immediately.
More importantly, there are specific regions where demand consistently exceeds supply – particularly during peak periods. These are effectively undersupplied markets where an owner with a well-presented property in the right location has a structural advantage.
The regions Rachel identifies as demand-rich but supply-constrained: North Wales, East Anglia, Northumberland, the Lake District, and Scotland – including both the Highlands and Islands and central Scotland.
"When you look at those peak times of year, they're already sold out. The more stock we can get in those areas, the more we can fill."
For anyone considering a holiday let investment, these are markets worth researching seriously.
What property types are performing best?
Rachel identifies three categories that are consistently strong or fast-growing.
Detached houses remain in high and consistent demand. Guests value the privacy – not being overlooked, not worrying about disturbing neighbours. It's a preference that has stayed stable regardless of other market shifts.
Unique stays are one of the fastest-growing categories. Glamping pods, safari tents, lighthouses, castles, converted barns, treehouses – guests are actively seeking experiences they can't replicate at home. "They're looking to make new memories and new experiences," says Rachel. "Something different, something quirky."
Farm stays are also rising quickly. Driven by a desire to reconnect with nature, step back from screens, and decompress – farm stays offer a type of reset that standard holiday accommodation can't easily replicate. With many farmers diversifying their income streams, more supply is entering this category.
The amenity that has generated 40% more revenue for 30 years
Hot tubs have been the number one searched amenity on Sykes for as long as Rachel can remember – almost 13 years – and they still are.
The revenue impact is significant: properties with a hot tub earn, on average, 40% more than comparable properties without one. Guests are willing to pay a premium for it, and it drives both search visibility and booking conversion.
But Rachel adds an important caveat: it has to be done properly.
"I've seen owners try to squeeze in hot tubs covered by walls all around them. You're not going to get the same effect. Don't just put one in because you think you have to – it has to be done well."
A hot tub without privacy, without the right setting, without proper maintenance and cleaning protocols, isn't the same asset. It's worth noting too that the cleaning cost for a hot tub between turnovers can reach £200 per changeover – that cost needs to be factored into your pricing and profitability calculations.
If your property suits it and you can do it well, the data strongly supports the investment. If it doesn't suit the property, the return won't follow.
Should you accept pets?
For hosts still on the fence about pet-friendly bookings, Rachel makes a compelling case.
"Guests that take pets are extremely loyal. When they find a property that works for them, they come back time and time again. They're great re-bookers."
Pet-friendly guests are one of the most reliable sources of repeat business in the holiday let market – and repeat bookings reduce marketing costs, improve forward occupancy, and smooth out seasonal gaps.
The practical requirements aren't onerous. Clear booking conditions, a thorough cleaning protocol, dog beds provided, and a welcome guide that includes local dog-friendly walks, pubs, and beaches. Set the property up well for pets, and guests return the favour.
"It's about not closing yourself off to that market," Rachel says. The cost of welcoming pets, done properly, is low. The loyalty it generates is disproportionately high.
The bigger picture
What the Sykes data shows overall is a market that continues to grow steadily, rewards professionalism and smart management, and still has significant undersupply in some of the UK's most attractive locations.
Average earnings are up. Demand for unique and experience-led stays is accelerating. Short breaks are driving a new wave of last-minute bookings that flexible operators are well placed to capture. And the fundamentals – a well-presented property, the right amenities, a pet-friendly policy, intelligent pricing – still determine the difference between an average return and an exceptional one.
Listen to the full conversation with Rachel Brennan on Holiday Let Insider – available on YouTube, Spotify, or Apple.
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