UK staycation market update

For Lake District owners, the standout story is this: countryside destinations with strong all-season appeal are outperforming—and Cumbria continues to rank among the top UK regions for holiday-let earnings.

Lauron’s View, Bowness On Windermere Ref. 1042150

Whether you already let with Lakelovers or you’re considering it, here’s what the newest data means specifically for Lake District holiday homes—and what to do next.

The report highlights that year‑round destinations in the Lake District are among the strongest income generators in the UK. In the regional ranking, Cumbria & the Lake District is the third highest‑earning region, with £27,000 average annual turnover

When it comes to where income is strongest, the Lake District features prominently:

• Grasmere is the UK’s #1 location for average turnover (£43,200)
• Coniston ranks #4 overall (£36,100)
• Bowness-on-Windermere ranks #9 overall (£34,450)

Raise View House Grasmere, Cumbria & The Lake District (Ref. 1127206

The Outlook Report highlights how owners are adapting to changing booking habits:

• 39% of owners have made their properties available for more days
• 33% have increased weekly rates
• 35% are planning renovations
• 23% plan to buy another holiday let in the next five years
• 23% are adding eco-friendly features, and 23% are adding income-boosting features

This points to a market where the “best” properties aren’t just well-located—they’re well-optimised: available, well-presented, and aligned to what guests search for. Read our helpful blog on this here

The report highlights that some property types outperform on average:

• Unique properties: £32,200 average income
• Detached houses: £31,400
• Farm stays: £29,800

The Country House Cumbria, Castle Carrock Ref. 1190202

Average income by bedroom count also rises sharply with size:

• 1 bed £16,500
• 2 bed £20,200
• 3 bed £24,700
• 4 bed £34,300
• 5 bed £46,600
• 6+ bed £75,000

What this means for new owners: layout and capacity can be a major driver of earning potential — particularly if the property is designed for year‑round breaks and flexible party types

Running a successful holiday let

The Outlook Report identifies the top five most-searched features on the Sykes website:

• Pet-friendly
• Hot tubs
• Large properties
• Sea views
• Swimming pools

 Read our blog on how to make your property stand out for helpful advice

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What guests want right now (and what works for Lakelovers owners)

• Short breaks can drive more bookings per year. Flexible short stays: 29% more bookings per year
• Hot tubs 21% more predicted revenue
• Pet-friendly remains one of the biggest demand drivers and can increase booking volume by 9% more booking per year

The Old Farmhouse at Brackenthwaite Farm, Yealand Redmayne nr Arnside Ref. 1166458

Want to know more about how to make your holiday cottage pet friendly

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Owner sentiment and regulation: what’s changing

The report notes:

• 45% of UK owners say they’ve been impacted by sector changes
• Owners are most worried about higher council tax, a tourism levy, and licensing schemes
• The most common changes affecting owners include higher council tax (58%), new safety checks (56%) and the abolition of the FHL tax regime (33%)

And importantly, owners are adapting:

• 25% claimed capital allowances before the FHL deadline
• 22% claimed small business rates relief
• 21% transferred to a limited company

Need to know more read our blog on  Holiday Let Rules & Regulations and also Tax Guide for Furnished Holiday Lets

What to do next: 6 Lake District actions that match the data

If you want to align your holiday let with where the market is heading, these are the moves most supported by the latest Outlook findings:

1) Extend availability where possible

More available nights = more opportunity to capture shoulder-season breaks and late demand.

2) Enable short breaks strategically

The Lake District’s year-round appeal makes it ideal for short stays—especially outside school holiday weeks.

3) Invest in the “bookable” upgrades

If you’re renovating, prioritise changes that guests feel immediately: bathrooms, heating comfort, layout flexibility, and standout amenities. Owners are actively renovating to stay competitive.

4) Go pet-friendly (if your property suits it)

Pet-friendly stays continue to be a reliable way to broaden demand across the calendar.

5) Consider eco-friendly improvements

A meaningful share of owners are investing in eco features; this is becoming a baseline expectation in premium countryside markets.

6) Use dynamic pricing to protect yield

Owners are increasing weekly rates where demand supports it, and the strongest markets (like the Lakes) can often sustain smart rate optimisation.