The best areas to buy a UK holiday home

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Discount Landlord Blog

There is no ‘right’ place to buy a holiday home, you need to consider what you want from the property. If you are buying for your own exclusive use, then think about whether you will use it for regular weekends or longer holidays.

If you wish to use it as a second home at the weekends then we recommend that you look no more than two hours away. Ask yourself; are you really going to want to face a long journey at the end of a working week?

If you plan to use the property for longer holidays, then a lengthier drive may not be so much of an issue. In both cases consider where you have previously enjoyed visiting, or have always wanted to holiday, and start from there.

Luckily, Britain ticks all the boxes when it comes to holidays – from city breaks in London, Bath or York, to seaside escapes in Brighton and Cornwall, to areas of natural beauty such as the Lake District or the Cotswolds.


Renting it out

There are many benefits to renting out your second home, your property can earn you what is known as a passive income and any money generated could be put aside, providing a safety net during retirement.

The tax benefits of a second home are also greater if you choose to rent it out.

Remember though that if you sell the property you will have to pay tax on any profit you make. Second homes can receive anywhere between 10%-50% deduction on your council tax however.

You may also be able to claim capital allowances for furniture and tools used for the upkeep of the property.


Old favourites


Properties in West Sussex offer an average rental yield of 14.3% and are well worth looking at. Holiday cottages in the South East can also prove very profitable, with rental yields of 11.3% and an annual house price increase of 12.2%.

“Our research across 28 agents and over 30,000 UK inspected rental properties found that the South East and in particular West Sussex are the best place to invest in a holiday Cottage in the UK closely followed by the Isle of Wight,” said Sam Heaton of

A two-bedroom chalet in Cumbria will set you back about £119,950 but offers good returns as well as lovely views of the countryside.

Areas such as Eastbourne in the South West provide typical rental yields of 10.2% and annual property rises of 7.2%.


Up and coming areas

Rural areas such as Blackdown Hills on the Somerset/Devon border, Stalisfield in the North Downs of Kent, and villages around Sheffield are currently performing well, according to Saskia Welman of

Improved infrastructure, attractions, restaurants and pubs are also throwing forgotten rural areas such as Saundersfoot in Pembrokeshire into the limelight.


Prices range from £165,000 for a three-bedroom bungalow to £1.25 million for a four-bedroom house with sea views. But rental values per week in the high season can range from £750 to £1,850.

The little known market town of Biggleswade in Bedfordshire has also be boosted by the arrival of the new Center Parcs resort in nearby Woburn, which is predicted to pump £20 million a year into the local economy.

Eglingham in Northumberland, is also benefitting hugely from investment and is just 20 minutes from the coast and more accessible than nearby Chalton.




If you are looking to buy in a busy tourist spot then parking can often be a problem. During the height of holiday season on-street parking will be limited, so it is best to look for properties with their own driveways, or with good public transport links.

To avoid sitting in traffic during your supposedly relaxing weekend away, look for a property slightly further from the main town or tourist hotspots.

Also if you want a place with a large garden, then you may have to think about hiring someone to maintain it when you and your tenants are not there, after all, your neighbours won’t thank you if your garden is in a mess.


Remember also that if you purchase a second or holiday home, that you may require specialist insurance.

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