5 Factors Behind High Performing Holiday Lets in 2026

In 2026, buying a holiday home in the UK is no longer about chasing peak season returns, it is about making the right long term investment.

Rising costs, council tax premiums and changes to tax rules have made many buyers more cautious, with overall holiday home numbers in England easing slightly.

However, this is not a market in decline. It is a market becoming more selective.

As Laura Dubois, Managing Director at Together Travel, explains, “the market is evolving, but underlying demand remains strong, particularly in coastal and rural areas.” 

Recent data supports this shift. The UK holiday home market is undergoing a period of adjustment, as a 200% tax charge and tighter regulations reshape how holiday homes are bought, owned and operated.

The total number of holiday homes and second properties in England peaked at 346,956 in 2024 before easing to approximately 336,011 in 2025, a 3% decline and the first sustained fall in over a decade. This follows the removal of key tax advantages and the introduction of council tax premiums, now applied by around 70% of local authorities.

However, this does not signal a drop in demand. Instead, it reflects a shift towards more considered ownership, with buyers focusing on long term performance and more resilient locations.

New data from VisitBritain highlights where demand is still growing. While the overall market is adjusting, several regions recorded strong year on year growth in domestic stays in March:

Region	2025	2026	%Change
Scotland	3%	15%	+400%
London	16%	21%	+31.25%
South West	18%	21%	+16.66%
East of England	19%	22%	+15.78%

 

This shows that demand is not disappearing, it is becoming more concentrated. Established destinations such as the South West and London continue to perform strongly, while Scotland’s growth reflects increasing interest in rural and experience led travel.

Across the Together Travel collection, we continue to see strong performance from properties that are well designed and professionally managed.

For buyers, this creates a clear opportunity. Fully managed holiday homes can still perform strongly, but the margin for error is smaller than it once was.

If you are considering investing in a UK holiday home in 2026, here are five factors that can make the difference between a property that performs well and one that struggles.

 

 

1. Do holiday lets need to perform all year round?

Yes, the most successful holiday lets secure bookings throughout the year, not just in summer. Properties in locations with year round appeal tend to deliver more stable income and are less reliant on peak season demand.

If you are buying a holiday home, it is easy to focus on peak summer demand. However, relying on just a few busy weeks can create an uneven income. High performing holiday lets attract guests across all seasons and from across all market sectors. Reliable internet, multiple bathrooms and well-equipped kitchens mean that holiday homes are often considered a viable option to the independent corporate traveller, hybrid worker or niche groups looking an alternative to a bland hotel stay. This requires a professional approach to marketing to ensure maximum exposure and results in more consistent occupancy and returns.

When assessing a property, it is worth considering the location, the type of guest it attracts and how well it performs outside peak months. Features such as cosy interiors, outdoor space, desk space, parking and pet friendly layouts can also help extend the booking season.

Properties that attract guests beyond the summer months are far better positioned to deliver reliable returns.

 

2. How does purchase price affect holiday let returns?

The price you pay for a holiday home has a direct impact on long term returns. Overpaying can reduce profitability, especially when factoring in running costs and tax changes, while a well-priced property is more likely to perform consistently.

It is easy to focus on the appearance or setting of a property, but long term performance is often determined at the point of purchase. In today’s market, where costs are higher and margins tighter, it is important to sense check the numbers.

Before committing, focus on:

• Realistic occupancy levels 
• Achievable nightly rates 
• Performance outside peak season 

Looking at comparable properties and real performance data can help you avoid paying a premium that is difficult to recover. Speaking to an experienced operator before buying can also give you a clearer picture of potential returns.

 

 

3. What locations perform best for holiday lets in the UK?

Established tourism destinations with consistent year round demand tend to perform best. Coastal and countryside locations with strong visitor appeal are generally more resilient than trend driven areas.

While some destinations experience short term spikes in popularity, long term performance is usually driven by repeat visitors and steady demand. Resilient locations often combine good accessibility, a variety of activities and a strong local hospitality offering.

Coastal areas in the South West, countryside escapes in Norfolk and rural destinations in Scotland continue to attract consistent interest from UK travellers. When choosing where to buy, it is worth prioritising locations with a proven track record rather than relying on emerging hotspots.

 

4. Does professional management improve holiday let performance?

Yes, professional management can significantly improve a holiday let’s performance. From pricing and marketing to guest experience, strong management plays a key role in maximising returns.

Buying the right property is only part of the equation. How it is managed will directly influence occupancy levels, nightly rates and guest reviews.

Professional management typically includes elements such as dynamic pricing, high quality listings, multi-channel marketing and ongoing guest support. These ensure the property remains competitive and visible throughout the year.

Working with an experienced operator can also provide access to data and systems that are difficult to replicate independently. At Together Travel, this includes pricing insight, national marketing exposure and a dedicated concierge team focused on both guest experience and owner performance.

Many buyers choose to partner with a specialist from the outset, so performance is built in from day one rather than improved later.

 

5. Are holiday lets a good long term investment?

Holiday lets can be a strong long term investment when approached correctly. Properties in well-chosen locations with consistent demand and effective management often deliver both steady income and potential capital growth.

While there may be short term fluctuations, particularly as the market adjusts to new regulations and costs, properties with strong fundamentals tend to perform over time. Taking a longer term view allows you to benefit from sustained demand while reducing the impact of short term changes.

If you are considering buying, it is worth thinking in terms of five to ten years rather than focusing on a single season or year. It is worth noting that establishing a new holiday home from scratch can take several years to reach its rental potential, as it takes time to build reputation, reviews and repeat business. At Together Travel you have the option of purchasing a holiday home that is already operational, with guaranteed forward bookings so that your investment starts working for you from day one of ownership.

 

Building a high performing holiday let in 2026 and beyond

The UK holiday home market is changing, but the fundamentals remain the same. Properties that combine year round appeal, sensible purchase prices, resilient locations and strong management are the ones most likely to succeed.

By focusing on these five factors, buyers can make more informed decisions and build a holiday let that performs in 2026 and beyond.

If you are considering buying a holiday home and want a clearer view of how it could perform, Together Travel can support you from the outset. From assessing locations and modelling potential returns to full service management, the team helps owners build holiday lets designed for long term success.

 

FAQ

Are holiday lets still profitable in the UK in 2026?

Yes, holiday lets can still be profitable in 2026, but success depends on choosing the right property, location and management approach. Well managed properties in established destinations are more likely to deliver consistent returns.

What makes a successful holiday let?

A successful holiday let typically combines a strong location, year round demand, realistic pricing and effective management. Properties that perform well across multiple seasons tend to deliver the best results.

Do I need a management company for a holiday let?

You do not have to use a management company, but professional support can significantly improve performance. It helps with pricing, marketing and guest experience, which can lead to higher occupancy and stronger long term returns.