Britain’s most popular seaside resort has been revealed after tourism surge | Great Britain | News

The holiday home capital of Britain has been unveiled after the modest county in north-east England saw a surge in tourism. Holiday rental owners in the area have seen rising profits, rising by more than a third on last year, according to analysis by Sykes Holiday Cottages.

This report compared the average annual income for holiday lettings in villages in 2022 and 2023 and found that the four villages with the highest growth were all in Northumberland.

Seahouses, in the Northumberland Coast National Landscape area, saw a 36% increase in rental income to £29,700 a year.

Bamburgh came in second, with income rising by a quarter to £30,100. The other two areas with higher than average rent growth were Alnwick and Alnmouth.

By contrast, Cornwall, a top choice for British tourists as it attracts more than 5 million visitors a year, saw an increase of just eight per cent in rental yields.

Andrew Fox, chairman of Visit Northumberland, said: “It’s great to see demand and returns for holiday cottages thriving in so many different areas of Northumberland, reflecting the growing interest in the amazing attractions, places and experiences available in the county.

“Northumberland offers an excellent opportunity for property owners, whether based on our stunning coastline, in our peaceful countryside or in the heart of our traditional towns and villages.”

Graham Donoghue of Sykes Holiday Cottages said: “With a wide range of things for travelers to see and do in Northumberland – including easy access to a national park and beaches – it’s no surprise to see that holiday home owners vacation is experiencing a significant increase. in their bookings and annual income as a result”.

According to the report, the average income for a UK holiday rental owner is £24,500, with a quarter using the property to save money for retirement.

However, the highest overall income was not found in Northumberland, but in Grasmere, Cumbria. Holiday rental owners in this area earned £43,100 in 2023.

Number two went to Ambleside, north of Windermere, which had an average income of £32,900, according to the analysis.

This comes as local residents and the government alike battle to reduce the number of rental properties in popular holiday destinations across the country.

Chancellor Jeremy Hunt scrapped the tax regime for furnished holiday lets, which previously allowed owners to qualify for commercial asset sale relief and pay capital gains tax at 10% when they sell.

HMRC also launched nearly 2,000 inquiries into holiday lettings in 2023. This was a 20-fold increase on 2022 as the pandemic-fueled accommodation boom continues.