Matlock has been named the top hotspot for holiday let investment in 2026, according to a new report by Sykes Holiday Cottages.
Owners in the Derbyshire town earned an average of £34,000 in 2025, 33% more than the UK average, with bookings per property rising 14% year-on-year. Warkworth in Northumberland and Castleton, also in Derbyshire, complete the top three, drawn from an analysis of hundreds of destinations across the country.
The ranking assesses average annual income, occupancy rates, and recent booking trends alongside local market dynamics and regulatory shifts to produce a top 10 list, all within England. It forms part of The Holiday Letting Outlook Report, an annual review of bookings and revenue data across 23,500 UK holiday rentals listed through Sykes.
Owners planning to grow their income in 2026 are pursuing several strategies: 37% plan to make their property available for more days, 37% are investing in facility improvements, and 27% are switching energy suppliers or installing energy-saving technology.
Accepting short breaks and multiple bookings within a single week is also gaining traction. Owners who do so secure an average of eight additional bookings and 25% more revenue.
"A town lesser known by holidaymakers, Matlock has a variety of draws, including its beautiful countryside and quirky tourist scene," said James Shaw, chief commercial officer at Sykes Holiday Cottages.
"As the holiday let market remains affected by changing regulations and tax rules, those taking the leap may want to look closely at locations like Matlock, Warkworth or Castleton, as each holds strong investment opportunities - indicating above average income and yearly increases in bookings."
"Despite the industry continuing to evolve, staycations remain popular, and we expect 2026 to be a record-breaking year for bookings. Our report is designed to give owners the confidence and clarity they need to navigate the market successfully, whatever changes they might face."
