Of course, choosing the right location is crucial to making sure you make a decent income from your investment. To help potential second-home buyers choose the right place, Hitachi Personal Finance has created a map using data from AirDNA, which analyses AirBnB booking data, combined with data from the Office of National Statistics (ONS) on the most visited cities in the UK. Here we reveal the 25 most profitable UK locations to own a holiday let and their monthly yields...
Holidaymakers who flock to the Midlands from the north and south can enjoy the city of Leicester’s highlights as well as its surrounding areas. With an average house price of £205,671 (according to Rightmove), the influx of younger buyers looking to rent, combined with a shortage of suitable housing in the region, means that property investors are seeing a good return for their money.
With an average house price of Sheffield, with an overall average price of £191,459, this city will be popular with holidaymakers watching their pennies plus Sheffield was hailed the best-value UK city in a TripAdvisor study in 2016. With the Peak District as its neighbour, it’s a top northern destination for those seeking relaxation in the countryside as well as a city break.
With most houses costing around the £195k mark, Aberdeen i an affordable place for a first investment and has worked hard in recent years to make itself more of a tourist destination. The city has many delights on offer – Hazlehead Park, the Duthie Park and its golden, sandy beach where lucky holidaymakers will spot pod of dolphins leaping and diving around the entrance to the harbour.
The city which houses the Angel of the North is a popular place to visit. Newcastle-upon-Tyne has a reputation for being a party city, but there’s plenty more on offer from art galleries and museums as well as a diverse culinary scene. Rightmove gives the average house price as £200,772, but flats can be picked up for about £130k.
Leeds appeared at number five of the Lonely Planet list of Top 10 European Travel Destinations of 2017 – the only UK city to make an appearance. This thriving cosmopolitan city in the heart of Yorkshire has plenty to attract visitors including 16 free museums and galleries to explore. It's one of the northern cities that regularly see yields of 7 to 8%, thanks in part to its large student population.
Visitors flock to the diverse city of Manchester which has lots to offer. The city centre is surprisingly compact which means visitors can walk from one side to the other in around 40 minutes. There’s a perfect mix of culture and modern delights to explore particularly in the Northern Quarter, which is famous for quirky bars and restaurants. With properties going for an average of £192,547 it's a great place to invest.
Nottingham hit the headlines when Prince Harry and Meghan Markle appeared together on their first official royal engagement in this city last year. There’s lots to see to attract visitors from the 450-acre Sherwood Forest Country Park to the cutting edge architecture all over the city. Failing that, a night at the dogs with a pie and pea supper. Belvoir Castle is not far away for fishing, shooting and even concerts. The average house price is £191,494.
The on-going regeneration of this city means visitors are keen to sample the new and ever-improving Birmingham. Surprisingly it is one of the greenest cities in the UK. Food fans will be drawn to the four Michelin star restaurants in the city – that’s more than any English city outside London. Houses are still affordable t £189,669, despite showing huge signs of growth with a 5% increase on last year.
Holidaymakers can enjoy an affordable escape but still reach London within 30 minutes by train, which is what makes this town so attractive. When it’s finally finished, the Elizabeth tube line will get you from Reading right through to central London. At an average rise of £360,457, houses around here don't come cheap and they have only risen by 3% since last year which means this market could be topping out. If you've already secured a property though, you'll be quids in.
Cardiff Castle, the Millennium Stadium and Cardiff Bay are just some of the many reasons people visit the Welsh capital. Many tourists also travel to Wales to explore the magnificent countryside available. With the National Park of the Brecon Beacons within easy reach of Cardiff, a trip here can also appeal to those wanting time outdoors. You'll look at £230,394 to secure a house here.
Known as the 'Gateway to England', Dover welcomes millions of visitors from all over the world. It’s home to the famous White Cliffs of Dover and the added bonus of a day trip to France with a 90-minute ferry crossing – or with a short drive to Folkestone you can do a much faster 35 minute Eurotunnel journey to Calais. Houses cost on average £201,934 here, but you'll be well set for tenants in the long run.
It's the second capital of Scotland and the city of Glasgow is known for its party vibe, family attractions, museums and culture. It also offers easy access to the region's quintessential lochs to dramatic mountain ranges and stretches of wild coastline. Houses sell for an average price of £172,886 so with a high rental yield it's an attractive proposition.
This cosmopolitan city has everything. It is steeped in history and has a plethora of independent shops, restaurants, cafes and bars. Bristol offers views of the Avon Gorge and Clifton Suspension Bridge and great shopping. You can even cycle all the way from the city centre to Bath on a cycle path. The average house sells for £308,355, so you'll need a healthy bank balance to get set-up here but the properties available are beyond beautiful.
Cambridge is known all over the world for being steeped in history, culture and exquisite architecture. It's a genuinely stunning place, brimming with beautiful buildings, pretty pubs and a host of things to do, from punting to partying and it's illustrious past comes at a pretty price, too. The average house sells for £509,851 and homes worth £1m sell faster in Cambridge than anywhere else in the UK, less than half the time they take to sell in other places.
A magnet for tourists around the world, London is one of the most lucrative areas in the UK. It is both a playground for the rich and famous and also top of the hit list for visitors of all ages, all year round. That being said, the top end of the housing market has stalled in recent times – with the most expensive boroughs actually seeing house price falls. Most of the sales in London over the past year were flats, which on average sold for £644,328, followed by terraced houses for about £878k and semi-detached properties averaged at £973k.
The colourful buildings of Brighton and Hove make idyllic holiday homes in a traditional seaside town. The pier is a popular draw and well as the cobbled streets known as the Lanes – the maze of alleyways in the historic shopping quarter. Holidaymakers can enjoy a traditional seaside escape but still reach London within an hour by train. The average house costs around £406,937, but there's always demand for places to stay all year round.
As the most lucrative UK city in the survey, it’s safe to say that Bath thrives on its tourism, attracting thousands of visitors year-round and home to world-recognised attractions such as the Roman spa and the beautiful crescents of Georgian houses, where Jane Austen lived many years ago. The average house costs £470,619 – pretty steep for a holiday home – but it's a sure investment and you'll always have somewhere to stay in this enchanting city. Hungry for more? Check out the easiest UK cities to buy a home in.