A new analysis ranks the top 10 holiday let hotspots for investors.
Based on the latest insight, holiday let owners at Matlock in Derbyshire earned an average of £34,000 in 2025 – 33% more than the average UK holiday let owner – with a 14% year-on-year increase in bookings per property.
Warkworth in Northumberland and Castleton, another Derbyshire location, round out the top three investment hotspots for 2026, with performance analysed across hundreds of destinations nationwide.
The ranking identifies where the strongest returns are emerging, considering average annual income, occupancy rates, and recent booking trends, alongside local market dynamics and emerging regulatory changes to create the top 10 location list – with all areas featured sitting within England.
It has been compiled as part of The Holiday Letting Outlook Report, an annual analysis of bookings and revenue data for 23,500 UK holiday rentals let through Sykes.
James Shaw, Chief Commercial Officer of Sykes Holiday Cottages, says:“A town lesser known by holidaymakers, Matlock has a variety of draws, including its beautiful countryside and quirky tourist scene.
“As the holiday let market remains effected by changing regulations and tax rules, those taking the leap may want to look closely at locations like Matlock, Warkworth or Castleton, as each hold strong investment opportunities – indicating above average income and yearly increases in bookings.
“Despite the industry continuing to evolve, staycations remain popular, and we expect 2026 to be a record-breaking year for bookings. Our report is designed to give owners the confidence and clarity they need to navigate the market successfully, whatever changes they might face.”
To futureproof their properties this year, holiday let owners are looking to make their holiday home available for more days to increase income (37%), investing in improvements to facilities (37%), and switching energy suppliers or installing energy saving tech (27%).
Accepting short breaks and multiple bookings in one week are also on the agenda, with owners who do so securing on average eight more bookings and 25% more revenue.
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