The Future of Holiday Letting in the Lakes

Holiday letting in the Lake District is thriving. The latest Holiday Letting Outlook Report confirms Cumbria & the Lake District as the third-highest earning UK region, with an average annual income of £27,000 for holiday lets. Despite challenging economic conditions, we achieved our best year ever for bookings. Thanks to our expert guidance, we helped our owners successfully navigate the market and maximize their returns.

So, if you are considering holiday letting or already have a property take a look at some key insights from the holiday letting outlook report. Or read the full Sykes Holiday Cottages blog for further details

Top Locations:

Cumbria has always been a top location for UK holidaymakers and this year is no different, with the Lakes expected to see strong footfall again.

Grasmere was the No1 location in 2024 for average turnover of £43,200. Situated in the heart of the Lake District National Park it’s a charming Lake District village known for its stunning scenery and surrounding walks, tranquil lake, and literary heritage as the home of poet William Wordsworth and of course the famous gingerbread!

Another honeypot location that has seen a good increase in turnover in 2024 is Bowness on Windermere. This bustling lakeside village came in at No9 reaching on average £34,450.

Grasmere. Image credit: Clare Louise Jackson

Lakes Earning Potential:

As the Lake District remains a top choice for UK staycations, driven by its natural beauty and year-round appeal. In 2025, demand for short breaks and pet-friendly stays surged, contributing to higher occupancy rates and increased income opportunities for owners. Earnings do vary depending on property size, location, and amenities. Unique, detached and larger homes or those with premium features can earn significantly more, especially if they cater to families or include pet-friendly options.

Your potential income from a Lake District holiday let depends on:

• Location: Properties near popular lakes or walking trails command higher rates.
• Property Size & Features: Extra bedrooms, hot tubs, and gardens boost appeal.
• Availability: Owners who offer year-round availability see higher returns.
• Pet-Friendly Policies: Pet-friendly homes remain in high demand.

Flexible short stay holidays account for 29% more bookings per year, while hot tubs 21% more in predicted revenue and pet-friendly 9% more bookings per year.

Our dedicated team monitor market demand and adjust pricing accordingly. To ensure your property is let for the best price, we recommend you opt for our Income Maximisation tools.

We also look at the industry as a whole, and according to data and analytics provider AirDNA, the top three seasonal periods where income potential is greatest are:

• Christmas week – 87% increase in revenue versus the week prior
• May half-term – 47% increase in revenue versus the week prior
•  Easter – 38% increase in revenue versus the week prior

Flaska House, near Penrith Ref 1081389

Running a Successful Holiday Let:

Adding quality features to your holiday let or ensuring you have maximised the properties potential is key to gaining bookings and improving income.

The top five most searched for features on the Sykes website were:

1. Pet-friendly
2. Hot tub
3. Large properties
4. Sea views
5. Swimming pool

Top five property types for income:

1. Unique/wow properties
2. Detached house
3. Farm stay
4. Barn conversion
5. Cottage

Brantlea, Bowness on Windermere Ref 1100192

Industry Insights:

Based on 2025 data, the average annual income for a Lake District holiday let is around £27,000, compared to the UK average of £24,700. Earnings vary depending on property size, location, and amenities. Larger homes or those with premium features can earn significantly more, especially if they cater to families or include pet-friendly options.

Owner strategies:

• 39% increased availability
• 33% raised weekly rates
• 35% plan renovations to boost bookings.

Stone Cross Mansion Apartments

Tips to Maximize Your Earnings

The HOLR report shows that 39% of owners increased availability and 33% raised weekly rates in 2025. To maximize your income:

• Renovate or add premium features like hot tubs.
• Offer flexible booking options.
• Invest in professional photography and marketing.

Looking Ahead

With strong demand and rising income potential, now is the perfect time to explore holiday letting in the Lake District. Whether you’re wondering “how much will my Lake District house make holiday letting?” or planning to maximize your income from a Lake District holiday let, the outlook for 2026 remains positive.

Let with Lakelovers:

To join our community of successful holiday let owners, call us on 015394 88855 or drop us an email on newowners@lakelovers.co.uk and we’ll get right back to you. Alternatively, complete the form below to request contact from our team, including a copy of our FREE Owner Guide.

*Data taken from our parent company Sykes Holiday Cottages – data from Sykes Holiday Letting Outlook Report 2024.