Investing in holiday lets in the UK is a proven way to generate passive income, but the true gems lie not in crowded hotspots, but in the quiet, high-yield destinations that investors might overlook.
In this guide, we uncover the underrated places in the UK to invest in holiday let properties, locations that combine natural charm, tourist appeal, and strong financial returns.
Off the radar of busy saturated holiday let markets, but not off the beaten path for travelers, these markets offer promising opportunities for investors seeking higher returns and potentially lower entry costs.
Why Choose Underrated Locations for Holiday Lets?
Higher Profit Margins with Lower Entry Costs
Major cities like London or Bath have high property prices and tight competition, cutting into profit margins. In contrast, emerging markets often provide properties at a fraction of the cost—with surprising occupancy rates and annual revenues.
Diversified Tourist Demographics
With rising domestic tourism, travelers are exploring new corners of the UK from rugged coastlines to historic towns. This shift in demand benefits hosts in non-traditional destinations.
Lower Competition = Greater Visibility
In crowded markets, hosts compete for guest attention. In emerging markets, fewer listings often mean better positioning, increased bookings, and higher nightly rates.
Underrated Locations for Holiday Lets
1. Isle of Skye: Scenic ROI in the Scottish Highlands
Known for its rugged coastline, waterfalls, and mystical allure, Isle of Skye sees a 61% average occupancy rate with an average revenue of £41,000 per listing. Tourists flock here for its breathtaking landscapes and tranquility.
2. Inverness: The Tranquil Tourist Magnet
The capital of the Highlands, Inverness offers charm, culture, and accessibility. With an average occupancy of 57% and revenue over £38,000, it’s ideal for year-round letting.
3. Firth of Forth: Where Business Meets Leisure
Straddling the industrial and natural, Firth of Forth welcomes both business and leisure travelers. It enjoys a 55% occupancy rate with a solid £31,000 average revenue per listing.
4. Liverpool: A Cultural Hub for Staycations
With rich maritime history, music roots (hello, Beatles!), and stunning architecture, Liverpool has become a sought-after destination for both international tourists and UK staycationers. The city averages a 43% occupancy rate and generates over £25,000 in revenue per listing annually.
This range makes Liverpool ideal for both new investors and experienced Airbnb co-hosts looking to expand their portfolio affordably.
5. Manchester: Big City Returns Without Big City Costs
While Manchester isn't exactly a hidden gem, it's less saturated than London or Edinburgh and holds untapped potential. Its 42% occupancy rate and £18,000+ average annual revenue are appealing, especially for those exploring how to become an Airbnb host.
6. Cornwall: UK’s Coastal Crown Jewel
From sandy beaches to charming harbours, Cornwall draws steady domestic tourism, especially during the summer. Despite a 30% occupancy rate, it earns an impressive £48,000+ per listing on average—proving that pricing power can outweigh frequency in coastal markets.
7. Devon: Family-Friendly Holiday Let Hotspot
With its moors, beaches, and quaint villages, Devon appeals particularly to families and nature lovers. It boasts a 33% occupancy rate with average earnings exceeding £48,000.
8. Yorkshire Dales: A Rural Retreat That Pays
With a strong 51% occupancy rate and over £35,000 in revenue, the Yorkshire Dales appeal to outdoor lovers seeking peaceful retreats.
9. York: History-Rich City with Premium Potential
York is steeped in Roman, Viking, and Medieval history. Despite a modest 30% occupancy rate, it commands over £52,000 per listing—one of the highest averages in this entire guide.
How We Gather Our Data
All insights in this post are powered by Beyond’s proprietary dataset, built from hundreds of thousands of active vacation rental listings across global markets. We analyze:
- Real-time reservation activity
- Historical booking trends
- Forward-looking pacing
- Anonymized performance metrics
This post includes short-term rental (STR) market trends specific to the UK from the last 12 months. These recommendations are based on general research and trends. They’re not exhaustive, but are meant to highlight a few interesting areas to explore.
Want Access to These Insights Yourself?
Beyond’s free Market Insights tool helps you:
- See real-time data for any STR market
- Compare occupancy rates, ADRs, booking lead times, and more
- Use our Airbnb estimator/ROI calculator to optimize listings
- Get smarter about when and how to price around events like college football games
👉 Check your city and find out how much you could be making per night.
Frequently Asked Questions (FAQs)
1. Is Airbnb profitable in the UK in 2025?
Yes. Despite regulation in some urban centers, holiday let properties in underrated locations like the Isle of Skye, York, and Cornwall can earn £25,000 to over £70,000 annually.
2. How to start Airbnb if I’m a beginner?
Research your market, follow local regulations, and list your property with strong photography, pricing, and guest experience in mind.
3. What are the benefits of becoming an Airbnb co-host?
You can gain experience without owning property by managing guest communication and turnovers for other hosts.
4. How much does Airbnb take from hosts in the UK?
Airbnb charges around 3% for standard listings, and up to 14-16% for hosts under the simplified pricing model.
6. Do I need a license to operate an Airbnb in these areas?
Some local councils require a license or registration. Always check regional policies before listing.
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