Lake District Holiday Let Owners Earning Up to £45,900 a Year, New Figures Show
Holiday let owners in parts of the Lake District are earning tens of thousands of pounds a year, with Grasmere named as the highest-earning holiday let location in the UK.
New figures from Sykes Holiday Cottages show that holiday let owners in Grasmere generated an average annual income of £45,900 in 2025. That is up from £43,200 in 2024 and is almost £20,000 higher than the UK average of £25,600.
Other Cumbrian locations also performed strongly. Bowness-on-Windermere ranked third in the UK, with average annual income of £36,200, while Ambleside ranked fourth, with average income of £34,800.
Top 10 Highest-Earning Holiday Let Locations
The top 10 highest-earning holiday let locations, ranked by average annual income, were:
| Rank | Location | Average annual income |
|---|---|---|
| 1 | Grasmere, Cumbria | £45,900 |
| 2 | Castleton, Derbyshire | £38,200 |
| 3 | Bowness-on-Windermere, Cumbria | £36,200 |
| 4 | Ambleside, Cumbria | £34,800 |
| 5 | Durham, County Durham | £34,100 |
| 6 | Matlock, Derbyshire | £34,000 |
| 7 | Aldeburgh, Suffolk | £33,600 |
| 8 | Warkworth, Northumberland | £29,500 |
| 9 | Hunstanton, Norfolk | £27,200 |
| 10 | Chester, Cheshire | £25,500 |
The figures show the strength of the Lake District’s visitor economy, with three Cumbrian locations ranking among the four highest-earning holiday let hotspots in the UK.
Grasmere Tops UK Holiday Let Rankings
Grasmere was named the highest-earning holiday let location in the country.
The village is one of the Lake District’s best-known visitor destinations, attracting walkers, families and short-break visitors throughout the year.
Its strong performance shows how popular Lake District villages remain with holidaymakers, especially those looking for countryside stays, walking routes and traditional village settings.
According to the figures, Grasmere holiday let owners earned an average of £45,900 in 2025. This placed the village ahead of other high-performing destinations such as Castleton in Derbyshire, Bowness-on-Windermere and Ambleside.
Bowness and Ambleside Also Among Top Earners
The Lake District had three places in the UK top four.
Bowness-on-Windermere came third, with holiday let owners earning an average of £36,200 a year. Ambleside followed in fourth place, with average annual income of £34,800.
Both locations benefit from strong visitor demand. Bowness is closely linked to Windermere and lake cruises, while Ambleside is a popular base for walkers, families and people exploring the central Lakes.
The figures suggest that well-known Lake District destinations continue to perform strongly, even as holiday let owners face rising costs and changing rules.
How the Lake District Compares With the UK Average
Across the UK, the average gross income for a holiday let owner was £25,600 in 2025, up from £24,700 in 2024.
Cumbria and the Lake District was named the second highest-earning region, with average income of £28,400. The Cotswolds ranked first at £30,600, while the Highlands and Islands followed with £28,000.
The figures show that the Lake District remains one of the most profitable regions for holiday lets in the country.
However, the highest-earning villages are performing far above the regional and national averages. Grasmere’s average income was more than £17,000 above the wider Cumbria and Lake District regional figure.
Why Lake District Holiday Lets Perform Well
Sykes said the strongest holiday let locations tend to share similar features. These include year-round appeal, strong tourism infrastructure and easy access to natural or cultural attractions.
This helps explain why places such as Grasmere, Bowness and Ambleside perform so well.
They are not only summer destinations. Visitors come throughout the year for walking, lake trips, food, shopping, events and short breaks.
This all-season demand can help owners fill more dates outside the busiest school holiday periods.
Short Breaks, Pets and Hot Tubs Can Boost Income
The report also found that some property features and booking choices can increase earnings.
Sykes said accepting short breaks and multiple bookings per week can generate 25% more revenue on average. Pet-friendly properties can earn 16% more, while homes with hot tubs can earn up to 40% more annually.
This suggests that owners who adapt their properties to match visitor demand may be able to increase their income.
For the Lake District, pet-friendly stays are likely to be especially attractive, as many visitors travel to the area for walking holidays and outdoor breaks.
Costs Still Eating Into Returns
Although the earnings figures are high, they are gross income figures and do not show final profit.
Holiday let owners also face regular costs. These can include bills, cleaning and changeover costs, repairs, maintenance, tax, licensing fees and marketing.
Separate figures from the Sykes Holiday Letting Outlook report showed average annual costs including £2,140 for bills, £1,580 for property maintenance, £1,450 for tax or licensing fees, £1,190 for changeover costs and £1,000 for marketing.
This means the amount owners keep after costs can be much lower than the headline income figure.
Debate Over Holiday Lets Continues
The figures come at a time when holiday lets and second homes remain a major talking point in the Lake District.
Supporters say holiday lets bring visitors into the area, support local jobs and help pubs, cafés, shops and attractions survive.
However, critics argue that high numbers of short-term lets can reduce the supply of homes for local residents and push up housing costs in popular villages.
The latest income figures are likely to add to that debate. They show how financially attractive holiday letting can be in parts of the Lake District, but they also highlight why pressure on local housing remains such a sensitive issue.
