Analysing data from 10 holiday destinations in the UK, specialist lender Octane Capital found activity in this investment increased the number of short-term rental properties by a third in the Lake District.
This represented a rise from 5,693 rentals to 7,591.
The Lake District saw the largest uptick in short-term rental availability, followed by the Peak District where holiday let availability increased by just over a quarter in one year.
The Cotswolds also saw an increase of a quarter while short-term rentals in Cornwall rose by 24.1 per cent. This was followed by Devon at 21.1 per cent, Brighton at 13.1 per cent and Liverpool at 10.8 per cent.
Three popular destinations reported a decline in holiday let rental availability, Octane’s data showed.
This dropped by 1.7 per cent to 3,891 in Manchester, while Newcastle saw an 11.6 per cent fall and London saw a 17.1 per cent decrease.
Overall, Octane Capital said the rise in holiday let properties aligned with an increase in appropriate mortgage availability.
According to Moneyfacts, the holiday let mortgage market boomed in January this year with 27 lenders offering 231 products, up from 186 deals from 25 providers in September 2021r.
Jonathan Samuels, CEO of Octane Capital, said: “Holiday lets offer a much more private and self-sufficient holiday experience than hotels provide. They provide more space and more freedom. So, it’s little wonder that the market is booming so much in most parts of the country.
“Because holiday lets are now the first choice for a huge swathe of the population, more and more people are thinking about ways to make money off the sector. Some people are simply opening up a spare room in their home, but others are buying new properties with the sole purpose of putting them on the holiday let market.”
He added: “While it’s an attractive idea, it’s one that requires careful consideration. The old idiom of location, location, location has never been more appropriate. If you can’t buy a property in a high demand short-term rental location, you’re going to really struggle to make any sort of profitable income in this sector.
“It’s about finding locations that offer the perfect balance between affordable purchase price and strong, reliable rental income. This is often easier said than done.”