"East Anglia is fast becoming a staycation powerhouse, and Southwold’s arrival in the UK’s top ten most profitable holiday let destinations is a testament to that"
- James Shaw - Sykes Holiday Cottages
Southwold has appeared for the first time in a list of the UK’s most profitable holiday let destinations, according to a new report from Sykes Holiday Cottages.
Owners of holiday lets in the Suffolk seaside town earned an average of £35,400 in 2024, up from £34,900 the previous year. This puts Southwold sixth in the UK for earning potential, with income for local owners around 40% higher than the national average of £24,700.
The wider East Anglia region was also highlighted as the most popular area for new holiday homeowner enquiries in 2023. Travel publisher Lonely Planet has further boosted its profile by naming East Anglia a must-visit destination for 2025, citing its unspoiled coastline, countryside landscapes and traditional towns and villages.
The findings are part of the Holiday Letting Outlook Report, which analyses booking and revenue data from 22,500 UK holiday rentals listed through Sykes. All of the top ten earning locations are in England, with the Cotswolds and Cumbria leading the rankings.
“East Anglia is fast becoming a staycation powerhouse, and Southwold’s arrival in the UK’s top ten most profitable holiday let destinations is a testament to that,” said James Shaw, managing director of Sykes Holiday Cottages. “Known for its charming coastal scenery, rich history and excellent food scene, Southwold has something for everyone.
“With the holiday let market experiencing changing regulations and tax rules, those entering the holiday letting market might want to look to Southwold and its surrounding areas as a strong investment opportunity. It’s a region to watch in the coming years as rising income could help to balance out any of the additional costs owners may face.”
Theresa Macdonald, owner of the holiday let Seas the Day, said: “We’d visited Southwold for years, staying in a family-owned caravan near the harbour, and completely fell in love with the town, so much so that we eventually bought and renovated a vacant property close to the sea.
“Letting out Seas the Day has been such a rewarding experience, and it’s lovely to see guests returning year after year. Southwold is full of character – whether it’s the iconic beach huts, independent shops or the peaceful coastal walks. There’s a charm here that keeps people coming back.
“Despite the changing regulations, it’s still a fantastic place to own a holiday let, not just for the earning potential, but for the joy it brings to those who stay.”
To boost profitability, 39% of UK owners say they are making their properties available for more weeks in the year, while 33% are raising their weekly rates. Enhancing the guest experience is also proving effective: properties with hot tubs generate 21% more revenue, pet-friendly homes see 9% more bookings, and flexible short-stay options have led to a 29% rise in occupancy.
