Holiday home owners are making third more money in 2021 than they did in 2019, as the popularity of staycations continues.
The average annual income generated by a holiday home in 2021 was nearly £28,000 – up 33 per cent on 2019, according to data from rental agency Sykes Cottages.
This was due in part to a 35 per cent increase in occupancy rates, it said, with homes in the Lake District having the highest occupancy at 80 per cent.
It also found that Dorset, the Cotswolds, and the Peak District were the top three earning locations for owners in 2021, while Devon and Somerset rounded out the top five.
The Cotswolds is one of the most popular locations for staycations, new data shows
Based on the average income figures for a four-bedroom holiday let, those in Dorset earn their owners nearly £36,000 per year.
Meanwhile, four-bed properties in the Cotswolds and the Peak District generate just over £35,000 and almost £34,000 respectively.
The income uplift came as many shunned foreign holidays due to travel restrictions and ongoing uncertainty.
In terms of occupancy rates, the Lake District was closely followed by Northumberland, the Peak District, Southern Scotland and the North York Moors.
In all of these locations, holiday homes were rented out for more than 78 per cent of days in the year.
Bev Dumbleton, chief operating officer at Sykes Holiday Cottages, said: ‘2021 was certainly the year of the staycation, as we saw the strong demand for UK-based accommodation culminate in record occupancy rates and a significant boost in average yearly income.
‘With the interest in holidays closer to home likely to remain a fixture for years to come, those considering investing in a holiday home in 2022 could see great success – particularly if they choose a location which has proven fruitful for those already in the market this year.’
Regions with the highest occupancy rates in 2021
1. Cumbria & the Lake District – 80.2%
2. Northumberland – 80.1%
3. Peak District – 78.6%
4. Southern Scotland – 78.6%
5. North York Moors – 78.4%
% days in the year that the property was occupied
Top-earning regions for holiday homes in 2021
1. Dorset – £35,864
2. The Cotswolds – £35,027
3. Peak District – £33,833
4. Devon – £33,071
5. Somerset – £32,708
Based on the average annual income of a four-bedroom property