Southwold has featured in a list of the UK’s most profitable holiday let destinations for the first time, according to an industry report by Sykes Holiday Cottages.
With holiday let owners in the seaside town earning an average of £35,400 per year in 2024, up from £34,900 in 2023, the destination ranked sixth across the UK for earning potential.
In fact, owners in Southwold could earn a significant 40% more than the average UK holiday let owner, with earnings across the UK averaging £24,700 last year.
The wider East Anglia region was also revealed as the most popular destination for new holiday homeowner enquiries last year, according to Sykes’ report. Meanwhile Lonely Planet has named the region a must-visit destination for 2025[1], due to its unspoiled coastlines, lush rolling countryside, and charming towns and villages.
The Holiday Letting Outlook Report is based on an analysis of bookings and revenue data for 22,500 UK holiday rentals let through Sykes. All of the locations which featured in the top 10 for earnings are within England, with hotspots in both Cumbria and the Cotswolds dominating the list.
James Shaw, managing director of Sykes Holiday Cottages, says: “East Anglia is fast becoming a staycation powerhouse, and Southwold’s arrival in the UK’s top ten most profitable holiday let destinations is testament to that. Known for its charming coastal scenery, rich history and excellent food scene, Southwold has something for everyone.
“With the holiday let market experiencing changing regulations and tax rules, those entering the holiday letting market might want to look to Southwold and its surrounding areas as a strong investment opportunity. It’s a region to watch in the coming years as rising income could help to balance out any of the additional costs owners may face.”
Sykes says that to maximise profitability, owners across the UK say they are increasing their property’s availability throughout the year and in some cases raising weekly rates.
Investing in guest experience is also proving key, with properties featuring hot tubs generating 21% more revenue, pet-friendly stays securing 9% more bookings, and flexible short-stay options driving a 29% increase in occupancy.
This article is taken from Landlord Today