Best Performing UK Holiday Let Hotspots: Where Investors Are Making the Best Returns

Holiday letting is a more and more rapidly evolving and much more appealing option for property investors and developers all over the UK, especially since UK holiday vacations remain very much in vogue. New. Some. Fresh. Figures. From. Holidaycottages.co.uk. Help. Identify. Top-performing. Hotspots. In. North. Wales. Where. Investors. Are. Getting. The. Best. Returns—And. Here's. What. We. Learned.

Betws-y-Coed: The Secret Gem of Holiday Let Investments

Situated amid Snowdonia National Park, Betws-y-Coed is not only a picturesque village—it's fast becoming one of North Wales's most lucrative destinations for holidaylets. With its breathtaking scenery, homely feel, and round-the-year popularity, it's little wonder that bookings have increased by 29% in the last year. Typically compared to an alpine oasis, this idyllic environment welcomes a surge of holidaymakers seeking a tranquil retreat, and thus it is an ideal investment for operators in the market for short-term letting.

Owners in the area are earning an average of £33,000 each year, with short-break reservations, pet stays, and luxury touches like hot tubs heavily driving profits.

While traditional favourite seaside resorts are still the most popular, the statistics reveal that holiday lets inland are equally—if not more—profitable. Holidaycottages.co.uk statistics reveal coast holiday lets earn a mean of £23,718 annually, followed by rural homes at £23,098, proving that countryside holiday lets are still good sellers.

Outside Betws-y-Coed: Other Holiday Let Hotspots

As Betws-y-Coed becomes the focal point, many other North Wales hotspots are also turning out to be just as profitable for holiday let investors. Colwyn Bay, Denbigh, Ruthin, and Barmouth have all turned out to be high-rending zones, possessing a mix of historic character, breathtaking scenery, and contemporary attractions that gets it just right every time. These hotspots keep drawing UK-based and overseas visitors looking for alternative, high-end accommodation—making them top targets for investors eager to get in on the thriving staycation market.

The complete list of North Wales's most lucrative holiday let destinations includes:

1️⃣ Betws-y-Coed

2️⃣ Colwyn Bay

3️⃣ Denbigh

4️⃣ Ruthin

5️⃣ Barmouth

6️⃣ Conwy

7️⃣ Abersoch

8️⃣ Aberdaron

What's Behind the Holiday Let Demand Boom?

Recent statistics have uncovered an interesting trend—72% of last year's bookings were from childless adults, with most being two-person bookings. This trend complements the growing popularity of romantic breaks, couples' holidays, and solo travel holidays, and this is changing the way investors need to approach the holiday let market.

Outside of geography, luxury amenities are the differentiator. Condominiums with interior gardens, pet areas, and wellness-oriented amenities such as hot tubs and spa-quality bathrooms are seeing higher occupancy and higher rental yields. As travellers' palates remain in flux, those who are meeting this need are poised to benefit from their investment in the successful staycation trend.

Magnate Assets Insight: Why Now Is the Time to Invest

Keith Egan, Managing Director of Magnate Assets, comments on the increasing popularity of holiday let investments:

"The UK’s staycation market is evolving, and North Wales is emerging as a major investment hotspot. The data confirms what we’ve been seeing in the property sector—holidaylets are no longer just about traditional seaside destinations. Investors should take note that inland retreats, especially those with premium features and flexible stay options, are achieving exceptional yields.

"With healthy rental returns, rising numbers of visitors, and comparatively lower numbers of competition in emerging areas such as Denbigh and Ruthin, the prospects for developers and property investors to maximize ROI in North Wales have never been better.".

For those wishing to bring some diversity to their investment, holiday lets in North Wales are a great option. With substantial rental yields, weekend stay demand, and ongoing growth of UK holidays, the time to tap into these flourishing areas is now. From quaint countryside getaways to fashionable seaside retreats, investing in the right property could mean steady returns and long-term profit in this growing market.

To find out more about holiday let investment strategies, get in touch with Magnate Assets today.