Best UK Holiday Let Markets by Occupancy Rate in 2026

Choosing a strong holiday let market is not just about finding a pretty village or a popular seaside town. The best UK Airbnb markets combine consistent occupancy, healthy nightly rates, enough demand outside peak season, and a realistic level of competition.

For this ranking, we analysed GuestFavorites market data for UK Airbnb and holiday let locations, focusing on occupancy rate as the primary demand signal. Occupancy is not the only metric that matters, but it is one of the clearest ways to understand how often a short-term rental is likely to be booked.

All figures below are based on GuestFavorites data for the period from May 2025 to April 2026, with active listing counts from May 2026.

Best UK Holiday Let Markets by Occupancy Rate

What the Ranking Shows

The first thing to notice is that the highest-occupancy markets are not all classic holiday destinations. Greater London leads this sample with 65% occupancy, but it behaves differently from a coastal holiday let market. London benefits from business travel, international tourism, events, family visits and year-round short stays. That makes occupancy more resilient, even though competition is intense.

The more interesting result for traditional holiday let investors is the strength of smaller markets such as Frome, Oxford and Bath. These places do not rely only on summer beach demand. They attract weekend breaks, university visits, weddings, cultural tourism and regional business stays, which can create steadier booking patterns across the year.

Coastal and rural markets still perform well, but their success depends heavily on pricing discipline and seasonality. Cornwall, St. Ives, Cumbria, Whitby and Bournemouth all show strong demand, but owners need to manage shoulder-season pricing carefully instead of assuming summer revenue will carry the whole year.

1. Greater London: Highest Occupancy, Highest Competition

Greater London has the strongest occupancy rate in this ranking at 65%, with an average daily rate of £218 and annual revenue of £51,449.

London is not a simple holiday let market. It is a massive urban short-stay market with business travellers, tourists, students, medical visits, events and extended-stay demand all overlapping. That helps explain the high occupancy rate, but the scale of competition is also much higher: GuestFavorites tracked 39,785 active listings in May 2026.

For investors, London is best viewed as a high-demand but operationally demanding market. Good locations, compliance awareness, professional cleaning and pricing automation matter more here than in smaller markets.

2. Frome: Small Market, Strong Booking Frequency

Frome stands out because it combines a 64% occupancy rate with only 112 active listings. Average daily rates are lower than in premium tourism markets at £136, but annual revenue still reaches £31,680.

That makes Frome an interesting example of a smaller market where occupancy is the main strength. It may appeal to hosts who prefer a market with less visible supply than major tourism hotspots, while still benefiting from Somerset weekend breaks and regional travel.

The key risk is scale. With fewer listings, individual property quality and location can make a big difference. Investors should compare nearby submarkets before assuming the whole area performs the same way.

3. Oxford: Year-Round Demand Beyond Tourism

Oxford posts a 62% occupancy rate, an average daily rate of £168 and annual revenue of £38,229. The city benefits from tourism, university-related visits, business travel and family stays.

This is exactly the kind of market where occupancy can remain healthy outside the main summer season. GuestFavorites data shows peak demand in April and May, rather than only July or August, which suggests that hosts should not treat Oxford like a purely seasonal holiday market.

For owners, the opportunity is in professional positioning: clean design, parking where available, strong guest communication and clear pricing around university events.

4. Bath and North East Somerset: Premium ADR With Strong Occupancy

Bath and North East Somerset combines 58% occupancy with a strong £192 average daily rate. Annual revenue averages £40,888, supported by Bath’s heritage tourism, spa weekends, Christmas demand and short breaks.

The seasonal pattern is also useful: peak months include December and July. That gives Bath hosts more than one revenue window, unlike markets that depend almost entirely on summer.

For investors, Bath is less about chasing the absolute highest occupancy and more about balancing occupancy with premium pricing.

5. Cornwall: Huge Demand, Huge Supply

Cornwall remains one of the UK’s most important holiday let markets. GuestFavorites tracked 16,644 active listings, with a 57% occupancy rate, £167 ADR and £34,647 annual revenue.

The size of Cornwall’s market is both a strength and a challenge. Demand is proven, but competition is significant. Within Cornwall, submarkets behave differently. For example, GuestFavorites data shows Padstow with stronger revenue than many larger towns, while St. Ives and Newquay remain among the most visible coastal Airbnb markets.

Owners should avoid treating “Cornwall” as one market. A property in Padstow, St. Ives, Newquay or Penzance can have very different pricing power, seasonality and competitive pressure.

6. Cumbria and the Lake District: Strong Rural Demand

Cumbria records 57% occupancy, £168 ADR and £35,197 annual revenue, with 8,982 active listings. For many UK hosts, Cumbria is effectively a Lake District holiday let play.

The market is large and established, but it is not uniform. GuestFavorites data highlights submarkets such as Keswick, Windermere and Bowness, Lakes, and Above Derwent as important areas to compare. Keswick, for example, shows particularly strong occupancy inside the Cumbria market.

This is a market where amenities matter. Parking, pet-friendly policies, hot tubs, walking access and views can all influence conversion and pricing.

7. Cheltenham: Event-Driven Demand With Solid Occupancy

Cheltenham has 57% occupancy, £158 ADR and £32,922 annual revenue. It is not just a Cotswolds-adjacent market: Cheltenham has its own demand drivers, including festivals, race events, business travel and weekend breaks.

That event-driven profile can be powerful, but it requires active pricing. Hosts who leave flat pricing in place may undercharge during high-demand periods and overprice during quieter weeks.

The best-performing Cheltenham listings tend to combine central access, design quality and flexible guest capacity.

8. St. Ives: Classic Coastal Demand

St. Ives has 56% occupancy, £188 ADR and £38,243 annual revenue. It is a classic UK holiday let market: beautiful, well-known, seasonal and competitive.

The upside is clear. Strong summer demand supports higher nightly rates, and the market has enough national awareness to attract repeat visitor interest. The challenge is that coastal markets can have sharper low-season dips.

For St. Ives hosts, the best strategy is usually not maximum occupancy at any price. It is better to protect premium rates in peak months, then use shoulder-season offers, minimum stay adjustments and experience-led listing copy to fill softer periods.

9. Bournemouth, Christchurch and Poole: Large Coastal Market

Bournemouth, Christchurch and Poole has 55% occupancy, £164 ADR and £32,663 annual revenue. With 2,092 active listings, it is a meaningful coastal market without the same supply scale as Cornwall.

This area benefits from beach demand, weekend trips, family stays and proximity to the wider Dorset coast. The market is competitive, but the data suggests stable demand with a slight reduction in active listings over the previous year.

Hosts should pay close attention to property type. Beach proximity, parking, larger guest capacity and family-friendly amenities can materially change performance.

10. Malvern Hills: Stable Demand in Worcestershire

Malvern Hills rounds out the top 10 with 55% occupancy, £156 ADR and £31,417 annual revenue.

This is a good example of a market that may not dominate national travel headlines but still produces steady short-term rental demand. Outdoor tourism, countryside stays and regional breaks support occupancy, while supply remains much smaller than in major coastal markets.

The opportunity is quality-led differentiation. A well-positioned rural stay can compete effectively if it offers clear reasons to book: views, walking routes, character, garden space, pet-friendly policies or premium interiors.

11-14. More UK Holiday Let Markets to Compare

Whitby, North Yorkshire

Whitby has 54% occupancy, £162 ADR and £31,935 annual revenue. It is a classic coastal holiday let market where summer demand is strong, but off-season pricing and weekend-break positioning matter.

Cotswold, Gloucestershire

Cotswold has 53% occupancy, £244 ADR and £47,063 annual revenue. The occupancy rate is lower than Oxford or Frome, but premium nightly rates can make the revenue profile attractive.

Stow On The Wold, Cotswold

Stow On The Wold has 52% occupancy, £230 ADR and £43,825 annual revenue. It is a smaller Cotswold market where individual property quality can have an outsized effect on performance.

Rugby, Warwickshire

Rugby has 52% occupancy, £131 ADR and £25,077 annual revenue. It is not as premium as the Cotswolds, but the smaller listing base may make it worth comparing for budget-conscious investors.

Markets With Lower Occupancy but Strong Revenue Potential

Occupancy does not tell the whole story. Some markets rank lower by occupancy but still look attractive because their average daily rates are high.

Cotswold, for example, has a 53% occupancy rate but a £244 average daily rate and £47,063 annual revenue. Stow On The Wold has 52% occupancy but £230 ADR and £43,825 annual revenue.

That is why investors should avoid ranking markets by occupancy alone. A property booked 52% of the time at premium rates can outperform a property booked 64% of the time at much lower rates.

How to Use Occupancy Data Before Buying a Holiday Let

Before choosing a UK holiday let market, compare at least four metrics:

• Occupancy rate: how often properties are booked
• Average daily rate: how much hosts can charge per booked night
• Annual revenue: the combined effect of occupancy and pricing
• Active listings: how competitive the market is

You should also look at seasonality. A market with a 57% annual occupancy rate may still have very different monthly behaviour. Cornwall, St. Ives and Cumbria are more seasonal than London or Oxford, so cash flow planning matters.

Finally, always compare submarkets. The best opportunity is often not the largest city or county, but a smaller area inside it with stronger pricing power or less competition.

FAQ

What is a good occupancy rate for a UK holiday let?

In the markets reviewed here, strong UK Airbnb and holiday let markets typically sit around the mid-50s to mid-60s for annual occupancy. A market above 60% suggests strong booking frequency, but profitability still depends on nightly rate, operating costs and property type.

Which UK holiday let market has the highest occupancy rate?

Among the markets in this ranking, Greater London has the highest occupancy rate at 65%. For more traditional holiday let markets, Frome, Oxford, Bath, Cornwall and Cumbria all show strong occupancy performance.

Is Cornwall still a good holiday let market?

Yes, Cornwall remains one of the UK’s biggest holiday let markets, with 57% occupancy and 16,644 active listings in the GuestFavorites dataset. The main challenge is competition, so hosts need to analyse individual towns and submarkets rather than relying on county-level averages.

Is occupancy more important than ADR?

No. Occupancy is a demand signal, but ADR determines how valuable each booked night is. The best holiday let markets usually balance both. The Cotswolds, for example, has lower occupancy than Oxford but much higher average daily rates.

Photo credits

All photographs are from Unsplash and used under the Unsplash License.

• Featured image (Bourton-on-the-Water, Cotswolds): Martin Fenton — photo
• Greater London: Benjamin Davies — photo
• Frome, Somerset: Ana Achim — photo
• Oxford: Ray Harrington — photo
• Bath: Quan You Zhang — photo
• Cornwall: Ben Elliott — photo
• Cumbria: James Armes — photo
• Cheltenham: Richard Bell — photo
• St. Ives: Malcolm Lightbody — photo
• Bournemouth: Robert Bye — photo
• Malvern Hills: Wendy Morris — photo
• Whitby: Diane Pilkington — photo
• Cotswold: Martin Fenton — photo
• Stow On The Wold: Strauss Western — photo
• Rugby: Tomasz Tomal — photo

Find UK Airbnb Occupancy Rates by Market

If you are comparing holiday let opportunities, start with live market data instead of broad national averages. GuestFavorites tracks occupancy rates, ADR, annual revenue, active listings, seasonality and submarket performance for UK Airbnb markets.

Explore the full Airbnb occupancy rates by city in England or search for your target market on GuestFavorites.