Industry insights
Top UK holiday-let investment destinations in 2025
6 Sept 2025
·
By Amanda Sanders
The UK holiday-let market continues to evolve in 2025, with several new and emerging destinations offering strong investment potential. While coastal favourites like Cornwall and the Lake District remain popular, savvy investors are now looking at lesser-known regions showing impressive booking growth, higher guest demand, and year-round appeal. In this article, we highlight the UK’s top up-and-coming holiday-let hotspots for 2025 and explore how Travelnest can help property owners make the most of the opportunity.
Brixham, Devon
Brixham tops the list in 2025 with a 62% year-on-year growth in bookings making it the fastest-growing holiday-let location in the UK according to recent data from Sykes Holiday Cottages.
This historic fishing town is proving popular with families and couples looking for a quieter alternative to Torquay or Paignton, but with the same scenic coastline and access to the South West Coast Path.
What this means for hosts: Properties in Brixham with sea views, pet-friendly policies or proximity to the harbour are especially in demand. Travelnest helps you reach those guests with tailored listings across 30+ booking sites and optimised descriptions that showcase your unique location.
Teignmouth, Devon and Saundersfoot, Pembrokeshire
Both Teignmouth and Saundersfoot saw booking growth of over 30% in the past year. Their appeal? A combination of traditional seaside charm, independent food scenes, and access to nature all while staying under the radar of crowded hotspots.
What this means for hosts: These towns are ideal for short breaks and last-minute summer stays. Travelnest’s dynamic pricing and availability tools help ensure your listing is well-positioned to capture peak interest during the busiest weeks.
Newborough, Anglesey
With a 30% increase in bookings, Newborough is becoming a go-to destination for families and couples seeking peace, wildlife, and beach access particularly around Llanddwyn Bay.
What this means for hosts: Guests here are looking for outdoor adventure and nature-inspired stays. Travelnest helps highlight features like secure bike storage, wood burners or garden views in your listing, so they don’t go unnoticed.
Betws-y-Coed, North Wales
Bookings in Betws-y-Coed have grown 29% in the past year, with Snowdonia’s popularity showing no sign of slowing down. This area is especially attractive to active travellers and wellness seekers.
What this means for hosts: Travelnest can help position your property as a rural retreat by improving how amenities like hot tubs, mountain views or proximity to walking routes appear across major booking sites.
Grasmere and the Cotswolds
While not new to the holiday-let scene, Grasmere and the Cotswolds are delivering strong returns. Grasmere properties earn an average of £43,200 per year, with Bourton-on-the-Water and Stow-on-the-Wold following closely at over £40,000.
What this means for hosts: If you own or are considering investing in high-performing areas like these, Travelnest’s team can help you protect and grow your revenue with listing audits, pricing guidance and seasonal performance reviews.
Redcar & Cleveland
One of the most surprising emerging regions is Redcar & Cleveland, where 50% of homes sold recently were snapped up by landlords. With rental yields approaching 10% and major regeneration projects underway, it’s becoming a compelling long-term play for investors.
What this means for hosts: If you're entering the market in an emerging area, Travelnest helps you get started with visibility from day one, connecting your listing to the right audience and supporting your long-term growth.
Other consistently strong regions
Alongside these up-and-coming locations, areas like the Highlands, Northumberland, the Peak District and East Anglia continue to perform well, particularly for properties that offer flexibility, pet-friendly access and unique design.
Average annual earnings for holiday-let owners across top UK destinations now exceed £24,000, with many properties earning significantly more when professionally managed and marketed.
Travelnest can help you unlock your property’s full potential
Whether you're investing in an up-and-coming destination or growing your holiday-let portfolio, Travelnest is here to help you make the most of your property.
We support UK holiday rental owners with:
Expert listing creation and optimisation
Dynamic pricing strategies based on real-time trends
Multi-channel distribution across Airbnb, Booking.com and more
Performance monitoring and personal support
Want to explore how your location compares? Or see how we can help you grow this year?
