Are Lake District Holiday Lets a Good Investment?

The Lake District is one of the UK’s most sought-after destinations for self-catering holidays, attracting millions of visitors every year. Its stunning landscapes, vibrant villages, and year-round appeal make it a prime location for property investors considering a holiday let investment. But is buying a holiday cottage in the Lakes really worth it? How much will a Lake District house make as a holiday let? Let’s explore the benefits, potential returns, and key considerations.

Deer Close, Coniston Ref 1171316

With over 40 years of experience in letting and managing self-catering holiday accommodation in The Lake District, Lakelovers offers expert advice on holiday letting investment from our offices in Windermere, Ambleside, and Keswick.

Visit our Let Your Cottage page for more information

Why Invest in a Holiday Let in the Lake District?

Consistent Demand
The Lake District is a UNESCO World Heritage Site and a top UK staycation hotspot. Visitors flock here for its stunning walking trails, cycling routes, boating adventures, and cultural attractions such as Beatrix Potter’s Hill Top and Wordsworth’s Grasmere. This consistent appeal means strong occupancy rates throughout the year—not just in summer.

Read our helpful blog on Choosing the right Lakes location

High Rental Income Potential
According to the Sykes Staycation Index 2025, the Lake District ranks among the most profitable regions for holiday lets, here’s some figures with regard to give you an idea of income from Lake District holiday letting:

• Grasmere tops the UK list with an average annual income of £43,200.
• Other hotspots include Coniston (£36,100) and Bowness-on-Windermere (£34,450).
• Across Cumbria, the average annual turnover is £27,000, compared to a UK average of £24,700.

This makes the Lakes a strong contender for investors seeking high yields.

Flexibility for Owners
Unlike traditional buy-to-let, holiday lets allow you to enjoy the property yourself during off-peak periods while generating income when booked. It’s a lifestyle investment that blends personal enjoyment with financial return.

What Makes a Successful Holiday Let Investment?

Location Matters
“Honey pot” areas such as Windermere, Bowness, Ambleside, and Keswick consistently perform well thanks to their central location and proximity to major attractions. Properties in these areas often command higher nightly rates and enjoy better year-round occupancy.

Property Features
Modern travellers expect comfort and convenience. Features like fast Wi-Fi, private parking, outdoor space, and pet-friendly options significantly boost bookings. Premium extras such as hot tubs, lake views, or log burners can justify higher rates and attract repeat guests.

Gate House, Coniston Ref. 1143496

Professional Management
By partnering with an experienced agency like Lakelovers, we can help you maximise occupancy and take the stress out of guest management. Did you know, many owners achieve 30+ bookings per year with a managed service.

To find out more about the service options we offer, visit our blog Fully Managed service

What Do the Numbers Say?

• Occupancy Rates:
  The annual average is around 53%, with summer peaks of 70–75% and school holidays often reaching 95%.
• Booking Trends:
  Staycations still remains strong, with 63% of Brits planning a UK holiday in 2025, and spending per family rising to £1,292, up 17% year-on-year.

Calculating ROI

Return on Investment (ROI) depends on:

• Purchase Price & Setup Costs (including furnishing and compliance)
• Annual Income (average occupancy in the Lakes is around 53%, peaking at 75% in summer)
• Running Costs (cleaning, utilities, insurance, management fees)

A realistic goal for many owners is to cover all running costs and generate a profit, while benefiting from long-term property appreciation.

For more information on this subject, read our useful blog on Costs of Running a Holiday Let

Is It Worth It?

If you’re looking for a combination of lifestyle and income, a Lake District holiday let investment can be a smart move. With strong demand, high rental yields, and the flexibility to enjoy your own slice of the Lakes, it’s an opportunity that blends financial return with personal enjoyment.

You can also read our sister company, Sykes Cottages Guide on Buying a Holiday Let for more information too

Disclaimer

The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time, so please contact our prospective new owner team if you’d like to hear how. Nothing in this article constitutes the giving of financial, tax or legal advice to you; please consult your own professional advisor (accountant, lawyer etc). in this regard. If we have referred within the article to a third-party provider of unregulated holiday let mortgages, this is due to the fact that such mortgages aren’t currently regulated by the FCA. As a helpful reminder, your home may be repossessed if you do not keep up repayments on a mortgage, so again anything you decide to do in this particular area this is one on which you should take your own professional advice on too, as we aren’t providing and can’t provide you with this. The information provided may differ from region to region.

Ready to start your holiday letting journey?

Explore our Owner Hub for expert advice and discover how Lakelovers can help you maximise your investment.

Prefer to chat? Give our local team a call for advice, up to date information and holiday letting insights, 📞 015394 88855 or click here for more info. Alternatively, complete the form below to request contact from our team, including a copy of our FREE Owner Guide.