How to buy a rural holiday home that will make a great investment

South Lakeland

In South Lakeland, the southern part of the Lake District around Kendal, during the two weeks from June 28, there were 4.24 bookings for every active listing, according to AirDNA. The average daily chargeable rate is £135.

Graham Wilkinson, of Lakelovers, a local holiday home letting agency, said a key draw for investors is the area’s year round appeal.

“The average UK property is booked for 25 weeks in a year, in the Lake District it’s 36 to 38 weeks. In Ambleside, it’s 45 weeks,” said Mr Wilkinson.

The village is the heart of the area’s holiday let market, closely followed by Windermere, “because it is one of the most famous brand names,” said Mr Wilkinson. But homeowners in the villages of Grasmere and Langdale are able to charge premiums as these places have very small supply, said Mr Wilkinson.

The average house price in South Lakeland is £238,420, according to estate agency Hamptons International. But holiday home investors will need to spend more.

The entry-level price for a two-bedroom cottage is £350,000, but “there’s an over supply of small properties. Bigger is better,” said Mr Wilkinson. “If you can get a three-bedroom, three-bathroom property that sleeps six, that’s the real soft spot,” said Mr Wilkinson. 

Budget yourself at least £550,000 and you’ll have a property that will bring you a gross annual income of £50,000, though you will spend half that on cleaning and maintenance. 

Scarborough

The Scarborough district, which stretches along the sandy North Yorkshire coastline to Whitby and includes the eastern part of the North York Moors National Park, comes in second place.

In the two weeks from June 28, there were 3.84 new bookings per active Airbnb listing, according to AirDNA. The average daily rate is £119, while the average home here costs £166,650, according to Hamptons.

Bev Dumbleton, of Sykes Holiday Cottages, a lettings company, said July and August bookings in Scarborough and Whitby are up 145pc year-on-year.

Coastal properties in the area earn 7pc more, but a sea view is not the biggest local earner, said Ms Dumbleton. Being pet-friendly will boost income by 11pc, she said, and properties with hot tubs make 54pc more than others in the same region.