Holiday let owners pocketed an average gross income of £25,600 last year – up from £24,700 in 2024.

Sykes Holiday Cottages’ analysis of bookings and revenue data for its UK holiday rentals reveals that owners’ average annual costs and expenditure including changeover costs, maintenance and bills added up to £7,360.

Coping with tax reforms and registration schemes along with the prospect of local tourism levies has led many to focus on futureproofing their properties, Sykes reports. They are making their holiday home available for more days to increase income (37%), investing in improvements to facilities (37%), and switching energy suppliers or installing energy saving tech (27%).

Agenda

Accepting short breaks and multiple bookings in one week are also on the agenda, with owners who do this securing on average eight more bookings and 25% more revenue.

The firm found that properties with a hot tub can earn an average of 40% more per year, while by accepting pets, owners get on average eight more bookings and earn 16% more revenue.

Worry

Rising operational costs are their main worry, along with the rising cost of living impacting tourists and higher council taxes. Scotland’s owners already have to pay for a licence while a registration scheme takes effect in Wales later this year, and a similar registration scheme has been promised for England. Meanwhile, there are plans to roll out a new visitor levy across England by giving mayors of ‘strategic authorities’ the power to bring in schemes, with Wales set to go ahead with a levy next year.

Ben Spier, head of regulation and policy (pictured above), says new council tax premiums have probably received the most attention in the media, which might be why its research found this to be causing much worry among owners. Adds Spier: “However, these are intended for second homes rather than holiday lets, because the former contribute far less to local tourist economies. So, most of our holiday let owners have not been affected by this change as they qualify for business rates.”

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