North Wales has it all — stunning landscapes, rich history, and a buzzing tourism scene that makes it one of the UK’s favourite staycation spots. So, if you’re wondering whether buying a holiday let here is a clever investment, you’re definitely asking the right question…
We know the holiday letting world is changing fast, and it can feel a bit daunting if you’re thinking about investing in this area. But here’s the good news: North Wales ranks in the top 10 for holiday let earnings, and demand just keeps growing.
Yes, the Welsh Government is working on ways to balance tourism with housing and community needs — but that’s not something to worry about just yet. At Menai Holidays, many of our owners are seeing great success, and with the right support and a bit of effort, there’s every chance you can too.
So, let’s dive in and see why a holiday let in North Wales could be a smart move for you…
Thinking of investing in a Holiday Let in North Wales?
Despite some economic ups and downs and a rainy start to the year, 2024 turned out to be a great one for Menai Holidays. Summer and autumn really saved the day, with holiday lets in North Wales achieving an impressive average occupancy of around 85%. It’s clear that this beautiful region is not only resilient but also increasingly popular — making it a savvy choice for property investors.
What makes North Wales especially exciting is how it balances affordability with strong demand. From families discovering the breathtaking scenery of Snowdonia to couples enjoying romantic breaks on Anglesey, the area attracts a wide range of visitors all year round. On average, holiday lets here bring in around £24,000 a year, and the top properties can earn up to £50,000.
Adding extras pay off too!
Adding pet-friendly facilities or a hot tub can boost your income by as much as 37%. And with average property prices sitting at roughly £213,000 — much more affordable than popular hotspots like Cornwall — North Wales offers fantastic rental yields without needing a huge upfront investment.
All things considered, the mix of affordability and lasting appeal makes North Wales an excellent choice whether you’re a seasoned investor or buying your first holiday let.
Reasons Why Holiday Lets Are a Good Investment in North Wales
So, why are holiday lets such a great investment? Let’s take a closer look at why our owners are thriving on their holiday letting journey.
- Strong Demand for Tourism
North Wales is a vibrant tourist destination, attracting millions of visitors annually. Iconic attractions like Snowdonia/Eryri National Park, the Isle of Anglesey, Conwy Castle or adventures sites like Zip World draw tourists from across the UK and beyond. The region’s mix of outdoor adventures, cultural experiences, and stunning landscapes ensures a consistent influx of visitors, making holiday lets a reliable source of income.
- High Rental Yields
Holiday lets in North Wales offer impressive rental returns, with an average gross income of £24,000 annually. Premium properties can generate up to £50,000, especially those with desirable features like hot tubs or pet-friendly options. These amenities often command higher rates, significantly boosting overall profitability.
- Investment Incentives
Holiday lets may qualify for attractive tax benefits. Properties that meet the criteria for furnished holiday lets can benefit from business rates relief instead of council tax. They may also be eligible for capital gains tax relief, providing an opportunity to maximise financial returns.
Head here for a complete Guide to Furnished Holiday Let Tax and Business Rates in Wales.
- Affordable Property Prices
With an average property price of around £213,000, North Wales is considerably more affordable than other UK holiday hotspots like Cornwall, where prices often exceed £300,000. This affordability opens the market to a broader range of investors, offering an accessible entry point for those starting or expanding their portfolio.
- Year-Round Appeal
Unlike seasonal destinations, North Wales has attractions and activities that appeal year-round. In summer, visitors enjoy beach days and water sports, while winter brings cosy cottage breaks and scenic walks in Snowdonia. This versatility helps maintain high occupancy rates, reducing the downtime that affects other locations.
- Growing Popularity of Staycations
The rise of staycations, driven by economic factors and global travel uncertainties, has fuelled domestic travel. North Wales, with its breathtaking landscapes and easy accessibility, has become a prime choice. This trend continues to bolster demand for holiday rentals in the region.
Key Features to Maximise Investment Potential
Buying just any property in North Wales and hoping for bookings isn’t enough. It’s important to be realistic about the market and understand that today’s guests expect real value for their money. So, ask yourself: what makes this property stand out? Why would someone choose to book here?
To make the most of your holiday let in North Wales, consider properties with:
- Proximity to Attractions
Properties near popular destinations like Yr Wyddfa (Snowdon), the highest mountain in Wales and England, the coastal towns of Anglesey, historic castles like Conwy, or adventure sites like Zip World are in high demand.
If you’re thinking of buying a holiday let in North Wales, but aren’t sure where to pick, head to our Best Places to Buy A Holiday Home in North Wales blog to explore our top spots.
- Luxury Amenities
Adding features like hot tubs or log burners can make your property more appealing, especially during off-peak seasons when guests look for extra comfort and cosiness.
- Garden Areas
Did you know that 32% of guests prioritise outdoor space when booking a holiday let? Having a comfy outdoor seating area is a fantastic way to appeal to those who love dining al fresco while enjoying the Welsh sunshine (when it decides to make an appearance!).
- Pet-Friendly Options
Nearly half of UK holidaymakers now look for pet-friendly accommodation — and offering this can give your occupancy rates a real boost. With its wealth of dog-friendly beaches and scenic walks, North Wales is the perfect destination for guests travelling with their furry friends.
Our guide on maximising your holiday let income goes into more detail on all the things you can do to ensure you’re getting the most out of your holiday let.
Challenges to consider when buying a holiday let in North Wales
While the benefits of letting property in North Wales are clear, it’s equally important to be aware of the challenges involved. Our blog on Navigating the New Holiday Let Rules in Wales dives deeper into these issues and is well worth a read if you’re considering buying a holiday let in the area. We always recommend doing your homework — after all, it’s a big decision, and being well-informed makes all the difference!
- Seasonal Income Variability
Seasonal income variability is a key factor for holiday let owners in North Wales. While summer brings high occupancy and increased bookings, the winter months can see a drop in demand due to colder weather and shorter days. However, with strategic marketing or winter promotions, as well as investments in sought after features, it’s possible to manage these fluctuations and maintain a more consistent income year-round.
- New Tourism Tax
The Welsh Government has introduced a tourism tax (or visitor levy) to support local communities impacted by high visitor numbers. Expected to be rolled out in the coming years, this tax will apply to overnight stays, including holiday lets, in popular destinations like North Wales.
While the tax aims to mitigate tourism’s environmental impact and fund community initiatives, it may increase costs for property owners and potentially deter some visitors. Investors should factor this into their pricing strategies to stay competitive without reducing demand.
- The 182-Day Rule
The introduction of stricter criteria for holiday lets to qualify for business rates relief is another significant change. As of April 2023, properties in Wales must:
- Be available for letting at least 252 days a year.
- Be let for a minimum of 182 days annually.
This policy aims to distinguish genuine holiday lets from second homes that aren’t actively rented. However, meeting the 182-day threshold can sometimes be difficult, especially during off-peak seasons. Owners who don’t meet the criteria may face reclassification under council tax, often at higher premiums due to second home surcharges in many Welsh counties.
- Planning Permission
- Change of Use: From 1 September 2024, planning permission is required in some areas, like Gwynedd, to convert residential properties into holiday lets to manage the impact on local communities.
- Article 4 Direction: Gwynedd’s Article 4 Direction removes permitted development rights, requiring formal planning permission for such conversions.
Our blog Do You Need Planning Permission for a Holiday Let in North Wales? goes through everything you need to know about planning permission and the new rules. Or get in touch and we’ll point you in the right direction!
How Menai Holiday Cottages can help you succeed
Despite some challenges in the North Wales holiday letting market, we’re proud to report an 8% increase in bookings per property and a 7% rise in revenue compared to 2023.
This shows that challenges shouldn’t hold you back — if you have a clean, well-presented property in a prime location, guests will book it!
Don’t know where to start?
Whether you’re new to holiday letting or considering buying a holiday property, Menai Holiday Cottages is here to guide you every step of the way. With years of experience specialising in the North Wales holiday market, we ensure no detail is missed, helping you maximise your holiday let’s potential.
From day one, our expert property consultants provide personalised advice and support tailored to your needs. And the best part? We don’t charge a penny until your first booking.
Let your property with North Wales’s leading holiday letting agency
As part of the Sykes Cottages family, your property benefits from millions of pounds worth of nationwide advertising, while still retaining the personal touch and local expertise that Menai Holiday Cottages is known for.
For those seeking a hands-off approach, we offer a fully managed service, removing all the stress of holiday letting and allowing you to enjoy the benefits of your investment without the hassle.
With Menai Holiday Cottages, you’re not just joining a leading holiday let agency, you’re partnering with a team that’s passionate about North Wales and dedicated to your success.
Whether you’re looking at buying a holiday let in North Wales or considering if “is buying a holiday let in Wales a good idea?”, the answer is a resounding yes for those that are willing to invest strategically. The combination of a booming staycation market, affordable property prices, and high rental yields makes holiday cottages in North Wales a compelling investment.
Have you thought about investing in North Wales holiday cottages? Let us know—we’d love to hear your thoughts!
Or if you want to read more about getting started with your holiday letting journey, have a look at Our Beginners Guide to Holiday Letting.
