Exclusively Eastbourne was set up 15 years ago when we realised that visitors to Eastbourne were looking for more than a hotel room or a traditional bed and breakfast - who wouldn't prefer the extra space and all the facilities that a fully furnished and equipped house or apartment can provide?
Are holiday lets still a good investment?
Should you consider buying a holiday home as an investment now?
The holiday rental market has grown hugely over the last decade, with the likes of Airbnb turbocharging awareness of the benefits and encouraging broad adoption globally.
In 2026, holiday lets are likely to remain attractive because they combine strong demand from the UK staycation market with potential for higher yields than traditional buy-to-lets, despite rising costs and tighter regulations.
Key elements for investors
Market Demand & Travel Trends
- Staycations are here to stay: Since the pandemic, UK residents have increasingly chosen domestic holidays. By 2025, nearly two-thirds of Brits opted for UK breaks, and this trend shows no sign of slowing in 2026.
- Climate and convenience: Warmer summers and unpredictable global travel costs are pushing more families to holiday locally.
- Financial Advantages
- Higher yields: Holiday lets can generate 8%+ rental yields in strong locations, often outperforming standard buy-to-let properties.
- Tax benefits: Although the furnished holiday lettings tax scheme is ending, investors can still benefit from offsetting expenses, and some councils offer incentives for tourism-driven rentals.
- Flexibility of use: Owners can block out personal time in the property, combining investment with lifestyle benefits.
Regulatory & Cost Considerations
- Rising costs: Stamp duty surcharges, council tax premiums, and stricter licensing rules are increasing the cost of entry.
- Professional management: Running a holiday let is more like a business than a passive rental. Investors need to factor in cleaning, marketing, and guest services and most consider utilising professional support from an agency such as Exclusively Eastbourne.
Location Hotspots
- Which areas will appeal and which areas are within easy reach of London?
- Cornwall, Devon and the Cotswolds remain popular but consider secondary destinations which are less saturated.
- Eastbourne is regularly the sunniest place in the UK and is only 1.5 hours from London on a direct train or a couple of hours to drive.
Outlook for Holiday Lets in 2026
Tourism resilience:
Even with economic uncertainty, domestic tourism is proving resilient, making holiday lets a hedge against downturns in international travel.
Diversification: For investors squeezed by declining margins in traditional buy-to-let, holiday lets offer a way to diversify portfolios with potentially higher returns.
Long-term growth:
The UK is one of Europe’s largest holiday home markets, and demand is expected to keep rising into 2026 and beyond.
Bottom line:
Investing in holiday lets in 2026 is not without challenges—higher costs and tighter rules mean investors must be selective. But for those who choose the right location and manage effectively, they offer a blend of lifestyle perks, strong yields, and exposure to the booming staycation economy.
Let holiday let experts offer you guidance and support
Here at Exclusively Eastbourne we look to provide professionalism with a personal touch.
We are the largest independent holiday rental agency in East Sussex and look to provide the best service to our property owners and guests enjoying our holiday homes in and around Eastbourne.
Read more about us here.