South-east England deemed most profitable for holiday let business

The south-east of England is a holiday rental hotspot, generating the highest rental yield for holiday lets compared to other regions.

According to the latest Hodge data, a week’s staycation at a holiday let in South East costs an average of £1,910 at high season, well above the average UK rental yield of £1,566 at high season, £1,107 at mid-season and £795 in low season.

This is followed by the South West (£1,769), the East (£1,569), Wales (£1.418) and the North West (£1,302).

Scotland is the cheapest place for a holiday during high season, with an average price for rental yields of £1,222.

Emma Graham, business development director at Hodge, said: “When brokers and intermediaries come to us with a holiday let application we ask them for the average rental yield for that property, from that we can calculate how much an average rental for that region is during the different seasons. 

“What our data shows is there has been some slight fluctuation in the market over the past year, with rental yield prices going up and down marginally, but that areas like the South East and South West are always the most profitable when it comes to running a holiday let business, as rental yields are always high.”

“It will be interesting to see how the rental yields will change over the next 12 months as restrictions on travel ease and more people are able to holiday abroad.

“What is clear to see is holiday lets have been hugely popular in the past six months, not only in terms of sales, but also in terms of the rental owners are able to charge, and holiday lets have been a sound investment for many if they have been able to buy one at the right time and at the right price.”

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