Average Holiday Let Income in the UK

Income Data

Average Holiday Let Income in the UK — What Properties Actually Earn

Last updated: June 2026

The most-quoted figure for UK holiday let income is a gross annual number — before running costs, management fees, or tax are taken out.

This page is for landlords looking at national benchmarks before running a postcode-specific estimate, and for anyone who has seen a high income figure in a developer projection and wants to understand what you actually keep.

The honest distinction is between gross income — what platforms and guests pay before any costs are deducted — and net income, which is what reaches you after running costs, changeover fees, and management fees.

The national average is a useful starting point, but your specific postcode, bedroom count, and how the property is managed will move the figure significantly in either direction.

Quick answer

UK holiday lets averaged approximately £25,600 in gross income in 2025 across more than 23,000 properties. After typical annual running costs of around £7,360, net monthly income sits closer to £1,500–£1,800 before management fees. Location, bedroom count, and management quality drive wide variation from that average — a property-specific estimate based on your postcode gives a more reliable figure than any national benchmark.

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See what your specific property could earn

National averages tell you half the story — your postcode tells you the rest

Why the headline income figure is almost always gross — and what that means for your planning

When a letting agent, developer, or industry report quotes an income figure for a holiday let, they are almost always quoting gross income — the total amount guests pay before any costs are removed.

Gross income is not what you receive.

Before any money reaches you, it has passed through platform fees (typically 14–18% on Airbnb and Booking.com), changeover cleaning costs, maintenance, utilities, insurance, and any management company fee.

Key distinction Gross income is what guests and platforms pay. Net income is what reaches the property owner after all costs. The gap between the two is typically £6,000–£9,000 per year for an average UK holiday let.

A property quoted at £25,600 gross income does not net £25,600 — but that figure appears in almost every industry headline because it is larger and more attention-catching than the net equivalent.

This page uses net figures wherever possible, labels gross figures clearly, and explains the costs that account for the difference.

What UK holiday lets typically earn by bedroom count — 2025 data

Data from more than 23,000 UK holiday let properties shows significant variation by bedroom count, with larger properties generating disproportionately higher gross income.

£16,800 1-bed gross/year
£21,000 2-bed gross/year
£25,600 3-bed gross/year
£36,000 4-bed gross/year
£48,200 5-bed gross/year

Source: 2025 UK holiday letting data, 23,000+ properties. Gross figures before costs and fees. England-only figures vary — regional breakdowns below.

Average Annual Gross Income by Bedroom Count · UK Holiday Lets 2025 £10k £20k £30k £40k £50k 1 bed £16,800 2 bed £21,000 3 bed £25,600 4 bed £36,000 5 bed £48,200 Gross income before costs · 2025 data · England figures vary by region

These are gross figures — the income earned before running costs, platform fees, or management company fees are deducted.

The jump between 3-bed and 4-bed is significant: a four-bedroom property earns approximately 40% more than a three-bedroom at the national average, reflecting both occupancy premium and higher nightly rates for larger groups.

Which areas of England earn the most — and what drives the difference

Regional variation in holiday let income is driven by a combination of tourist demand, proximity to major attractions, and the availability of alternative accommodation.

The Cotswolds currently leads UK holiday let income, with average gross income approximately 20% above the national average.

Cumbria and the Lake District follow closely, reflecting strong year-round tourism and limited accommodation supply relative to demand.

Derbyshire — particularly the Matlock area — has shown the strongest year-on-year growth in 2025, with bookings up 14% and average income approximately 33% above the national average.

Yorkshire Coast, Devon, Cornwall, and the Northumberland coast all sit above the national average for gross income, driven by strong domestic leisure demand and limited accommodation supply in peak periods.

Urban holiday lets operate differently from rural and coastal properties — demand is driven by corporate contractors, healthcare workers, university activity, and event attendance rather than leisure tourism.

This means urban properties tend to have more consistent year-round demand but lower peak-season premiums than traditional holiday destinations.

Cities including Leeds (152–186% uplift over LTR), Brighton (99–125%), Southampton (99%), and Bristol (73%) show strong urban short-let performance driven by contractor and professional demand.

For city-specific income figures, the income calculator uses postcode-level data rather than regional averages.

What you actually keep after running costs — the net figure most guides don't show

Taking the UK average of approximately £25,600 gross annual income and applying typical running costs produces the figure most landlords actually want to know.

Average 3-bed holiday let · England · Annual

Gross income (guest and platform payments) £25,600
Bills and utilities −£2,140
Property maintenance −£1,580
Changeover cleaning costs −£1,190
Tax, licensing and compliance −£1,450
Marketing (self-managed only) −£1,000
Net income before management fee · approx. £18,240

At self-managed rates, a typical 3-bed holiday let nets approximately £18,240 per year — around £1,520 per month — after running costs but before income tax.

This figure assumes the national average occupancy rate of around 55%, which is the rate achieved by most self-managed properties without dynamic pricing or direct booking channels.

Important note The above uses UK-wide cost averages. Actual costs vary by property size, location, and management approach. The income estimate tool uses postcode-level data to produce a figure specific to your property.

Why professionally managed properties typically net more — despite the management fee

The counterintuitive finding from Stayful's portfolio data is that professionally managed properties tend to net more to the owner than self-managed equivalents, even after paying a management fee.

The mechanism is occupancy: Stayful-managed properties achieve 65–70% average occupancy against the UK market average of 55%.

15%
Stayful's management fee as a percentage of net booking value — the higher occupancy and direct booking rate typically more than offset this against a self-managed equivalent at 55% occupancy.

The 40% of Stayful bookings that come through direct channels — where no Airbnb or Booking.com platform fee applies — further increases the net to the owner on those bookings.

Metric UK self-managed average Stayful managed
Average occupancy 55% (AirDNA) 65–70%
Direct bookings Rare without own website 40% — zero platform fee
Dynamic pricing Manual or at basic rates Included — optimised daily
Management fee £0 (plus your time) 15% + VAT of net booking value
Conservative net monthly (UK avg) ~£1,520 £2,527 (conservative)
Management time required 8–12 hrs/month peak season None

The £2,527 monthly net figure is Stayful's conservative estimate drawn from the bottom quartile of 185 property enquiries — not the median.

The median net monthly income across the same dataset is higher, but the conservative figure is the one used in all Stayful income estimates to avoid overpromising.

70+ Properties managed
£3M+ Revenue earned for owners
4.8★ Google rating
40% Direct bookings

What a slower month looks like — and whether it still beats a long-term tenancy

January is typically the lowest-performing month for UK holiday lets.

For a professionally managed property earning around £2,527 per month on average, a January floor of £900–£1,200 is realistic depending on location — significantly below the monthly average but still close to or above a long-term tenancy equivalent for many property types.

The honest picture No management company can guarantee an income floor. What Stayful shows in every estimate is the realistic range — including what a quieter month looks like — based on comparable properties in your postcode, not best-case projections.

The annual net figure is what matters most: even with a weak January and a slow February, a property achieving 65–70% occupancy across the full year consistently outperforms what the same property would generate on a long-term tenancy.

For a direct comparison for your property type, the income calculator shows both the monthly average and the slow-month floor.

For more on the long-let vs short-let comparison, see is short-term letting worth it.

Holiday let vs buy-to-let — which earns more on the same property?

The comparison depends on three variables: location, the mortgage position, and whether you use a management company.

For a two-bedroom property in a city with strong short-let demand — Leeds, Brighton, Southampton, Bristol — the conservative data from Stayful's enquiry portfolio puts short-let net income 48–66% above the equivalent long-term rent, at the bottom quartile of performance.

The median uplift across 185 enquiries is 91%.

Where buy-to-let wins Long-term tenancies generate fixed, predictable income — useful for landlords who need to service a mortgage with guaranteed monthly income. Short-term letting generates more income with more variability. The right choice depends on your financial position and risk appetite.

The 2025 abolition of the Furnished Holiday Let tax regime has reduced some of the tax advantages that previously favoured holiday letting over buy-to-let — both now face the same 20% basic rate mortgage interest tax credit rather than full deduction.

Income differences remain real and significant — the tax-treatment difference has narrowed but the income differential has not.

For the full tax comparison, see Section 24 landlord tax and the furnished holiday let allowable expenses guide.

How to move from the national average to your specific property figure

The national average income figures on this page are a benchmark — useful for understanding the market, not for making a financial decision about a specific property.

Two properties in the same city, with the same bedroom count, can produce income figures that differ by 40–60% based on postcode, condition, and how the property is positioned and priced.

  • Postcode — proximity to key demand drivers (hospitals, universities, business parks, venues) drives significant variation within a single city
  • Bedroom count and sleeping capacity — the per-guest nightly rate and total occupancy potential vary significantly
  • Property condition and photography quality — well-presented properties consistently outperform comparable ones by 15–25% in bookings
  • Pricing strategy — dynamic pricing that adjusts nightly rates to local demand, events, and seasonality adds material income over flat-rate listing
  • Direct booking channel — properties on multiple platforms including direct booking channels earn more per booking than single-platform listings

Stayful's income estimate uses live data from comparable properties in your postcode — not modelled projections — to produce a specific net figure for your property type, including a realistic slow-month floor.

It takes two minutes and carries no obligation — many landlords run it simply to have a real figure before making any decision.

The questions landlords ask about holiday let income figures

UK holiday lets earned an average gross income of approximately £25,600 in 2025, based on data from more than 23,000 properties.

After typical annual running costs of around £7,360, net income before management fees sits closer to £18,240 per year — or approximately £1,520 per month.

Professionally managed properties with higher occupancy rates typically net more than the self-managed average, even after accounting for management fees.

Using the UK gross average of £25,600 per year, that equates to roughly £2,133 per month before costs.

After typical running costs, the self-managed net monthly average is closer to £1,500–£1,800.

Conservative data from Stayful's portfolio of professionally managed properties puts net monthly income at approximately £2,527 — reflecting higher occupancy (65–70%) and the direct booking channel that avoids platform fees on 40% of bookings.

The UK average gross income for a 2-bed holiday let is approximately £21,000 per year.

After running costs of around £7,000–£7,500, self-managed net income is approximately £13,500–£14,000 — roughly £1,125–£1,167 per month.

Location drives significant variation: a 2-bed in the Cotswolds or Lake District will earn materially more than the national average; a 2-bed in a city with strong contractor demand will also outperform.

Typical annual running costs for a holiday let are approximately £7,360, broken down as: bills and utilities ~£2,140, property maintenance ~£1,580, tax and licensing ~£1,450, changeover cleaning ~£1,190, and marketing ~£1,000.

When using a management company, marketing costs are typically absorbed into the management fee and changeover costs are structured as a guest-facing cleaning fee rather than an owner expense.

For a full breakdown, see the holiday let management costs guide.

For properties in strong short-let markets — tourist destinations, cities with high contractor and professional demand — a holiday let will typically outperform a buy-to-let on net annual income by 48–91% based on conservative UK data.

The trade-off is income variability: a long-term tenancy produces fixed monthly income; a holiday let produces higher but variable income.

The 2025 FHL abolition removed some historical tax advantages, but the income differential between the two models remains significant in most markets.

The Cotswolds and the Lake District consistently produce the highest holiday let incomes in England, with average gross income approximately 10–20% above the national average.

Derbyshire — particularly around Matlock — is showing the fastest growth in 2025, with income approximately 33% above the national average.

Among urban markets, Leeds, Brighton, Southampton, and Bristol show the strongest short-let uplift over long-term tenancy equivalents.

January is typically the lowest-earning month for UK holiday lets.

For a professionally managed property with an annual average of around £2,527 per month, a January net of £900–£1,200 is realistic depending on location.

Urban properties with contractor and professional demand tend to have more consistent winter income than rural and coastal properties, which are more seasonally dependent.

The income estimate shows a seasonal breakdown including the slow-month floor — the figure that matters most for financial planning.

The UK market average occupancy rate is approximately 55%, based on AirDNA data across the UK short-let market.

Stayful-managed properties achieve 65–70% average occupancy — reflecting the combination of multi-platform listing, dynamic pricing, and the direct booking channel that accounts for 40% of bookings.

The 10–15 percentage point difference in occupancy is the primary driver of the income premium for professionally managed properties over the self-managed average.

Stayful Holiday Let Management · England

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National averages won't tell you what your property earns

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