With millions of people booking cottage holidays across the UK in recent years, demand for holiday homes continues to remain strong. While the popularity of staycations increased during the Covid-19 pandemic, interest in holiday lets and second homes has continued well beyond that period.
For many buyers, a holiday home offers more than just a place to escape to. Depending on the location and type of property, it can also provide an opportunity to generate rental income through short-term lets.
Choosing the best place to buy a holiday home will often come down to what matters most to you. Some buyers prioritise rental potential and year-round visitor demand, while others focus on scenery, accessibility, or proximity to family and friends.
This guide looks at some of the best places to buy a holiday home in the UK and abroad, based on locations and information highlighted across Schofields’ holiday home research and guides.
Are holiday homes a good investment?
Owning a holiday home can offer several benefits. For some people, it provides a regular escape from day-to-day life and a chance to enjoy a favourite destination more affordably than booking hotels or holiday lets.
For others, there’s also the opportunity to generate income through holiday letting.
Research from the Sykes Holiday Cottages Holiday Letting Outlook Report 2024 found that UK holiday let businesses earned an average of £24,700 in 2024, representing a slight increase compared to the previous year.
However, location remains one of the biggest factors affecting the success of a holiday let. Popular tourist destinations with strong year-round appeal are often able to attract more bookings and higher occupancy rates.
Best places to buy a holiday home in the UK
The UK offers a wide variety of holiday home locations, from countryside retreats and coastal villages to busy cities and cultural destinations.
Best place to buy a holiday home in England
The Lake District
Grasmere was identified as the top rural and coastal holiday home location in the UK for short-term letting income.
Situated in the heart of the Lake District, Grasmere is known for its lakeside scenery, walking routes, and peaceful village atmosphere. The area appeals strongly to walkers and nature lovers, while attractions connected to William Wordsworth continue to draw visitors throughout the year.
Research from the AirDNA UK Short-Term Rental Market Review found that average annual income from short-term letting in Grasmere reached £43,200.
The Cotswolds
Both Bourton-on-the-Water and Stow-on-the-Wold featured among the UK’s top-performing holiday home locations.
Bourton-on-the-Water is often referred to as the ‘Venice of the Cotswolds’ thanks to its stone bridges and position along the River Windrush. Its honey-coloured cottages and nearby attractions continue to make it a popular destination for visitors.
Meanwhile, Stow-on-the-Wold is known for its historic charm, antique shops, traditional stone buildings, and position within the Cotswolds countryside.
Suffolk
Southwold was also highlighted as one of the UK’s most popular holiday home destinations.
The seaside town is known for its sandy beaches, beach huts, promenade, and traditional seaside atmosphere. Alongside this, visitors can explore independent boutiques and shops selling local produce, antiques, jewellery, and gifts.
Derbyshire and the Peak District
Castleton, located within the Peak District, ranked among the leading rural holiday home destinations.
The village is surrounded by walking routes, caves, and natural attractions including Mam Tor. Its mix of outdoor activities, history, and scenery continues to attract visitors looking for countryside escapes.
Best place to buy a holiday home in Wales
Pembrokeshire Coast
Pembrokeshire Coast National Park was identified as one of the UK’s ‘up and coming’ holiday home locations.
The area is well known for its coastline, wildlife, walking routes, and outdoor activities including surfing and paddleboarding.
For buyers looking for a countryside or coastal retreat, Pembrokeshire offers strong appeal for visitors interested in outdoor tourism.
North Wales
North Wales was also highlighted among the UK’s most popular tourist destinations for holiday lets.
The region continues to attract visitors thanks to its mountains, coastline, and outdoor activities.
Best place to buy a holiday home in Scotland
Edinburgh
Edinburgh ranked among the top city-based holiday home locations in the UK.
The city attracts visitors throughout the year due to its architecture, history, cultural festivals, and arts scene. Attractions such as Edinburgh Castle and the National Gallery of Scotland continue to contribute to the city’s popularity.
Good transport links and a strong tourism market also make Edinburgh an attractive option for holiday home buyers.
Cheapest place to buy a holiday home UK
Property prices can vary significantly depending on the destination.
Rightmove figures showed that average holiday home prices in some of the UK’s most popular destinations included:
Norfolk Coast – £297,749
Lake District – £308,411
Suffolk Coast – £320,008
Cornwall – £340,350
Peak District – £400,811
Dartmouth – £475,966
Among the locations listed, the Norfolk Coast had the lowest average property price.
The report also noted that remote locations can sometimes provide opportunities to purchase cheaper holiday homes compared to more established tourist hotspots.
Best places to buy a holiday home abroad
Overseas holiday homes continue to appeal to UK buyers looking for warmer climates, different lifestyles, and tourism-driven rental markets.
Best place to buy a holiday home in Europe
Spain
Spain remains one of the most popular countries for British holiday home buyers.
Locations including the Costa del Sol, Marbella, Alicante, Mallorca, and Torrevieja continue to attract overseas buyers due to their climate, beaches, and established tourism industries.
Portugal
Portugal was also highlighted as a popular destination for holiday home ownership.
Areas such as Lisbon, Porto, and the Algarve continue to attract tourists and overseas property buyers alike.
France
France remains a long-standing favourite among UK buyers.
Its accessibility from the UK, combined with a variety of countryside, mountain, and coastal destinations, continues to make it a popular option for second homes.
Greece
Greek islands including Santorini, Mykonos, Corfu, and Kefalonia were highlighted as attractive locations for overseas holiday homes.
Cyprus
Cyprus continues to appeal to buyers looking for warmer weather and established expat communities.
Best places to buy a holiday home abroad outside Europe
Florida
Florida was referenced as a popular overseas destination for holiday home buyers due to its strong tourism market.
Bali
Bali continues to attract interest from overseas buyers looking for tropical destinations and growing tourism demand.
Costa Rica
Costa Rica was also highlighted as an overseas holiday home destination, particularly for buyers interested in eco-tourism and beach locations.
What to consider before buying a holiday home
Before purchasing a holiday home in the UK or abroad, there are several important factors to think about.
Location and accessibility
Location remains one of the most important factors affecting the success of a holiday let.
Popular tourist destinations often attract stronger demand, but buyers should also consider:
Accessibility by road, rail, or air
Nearby amenities including shops, restaurants, beaches, and attractions
Seasonal demand levels
Competition from nearby holiday lets
Potential future changes to local regulations surrounding second homes
Research from Schofields’ holiday home data also found that UK holiday home owners lived an average of 121 miles away from their second property.
Balancing lifestyle and investment
For some buyers, a holiday home is primarily about lifestyle and personal use. For others, rental income and occupancy rates will play a larger role in deciding where to buy.
Popular countryside destinations such as the Cotswolds and Cumbria were highlighted as locations with strong year-round appeal.
Ultimately, the best place to buy a holiday home will depend on what you want from the property, the type of location you enjoy, and whether your priority is personal use, rental income, or a combination of both.
Specialist Holiday Home Insurance
If you are looking for financial protection for your holiday home, you may want to consider specialist holiday home insurance through Schofields. With tailored cover designed for holiday home owners, we can help financially protect you and your holiday home, get a quote online.
Please note the information provided on this page should not be taken as advice and has been written as a matter of opinion. For more on insurance cover and policy wording, see our homepage.