{"id":9892,"date":"2026-02-11T15:30:13","date_gmt":"2026-02-11T15:30:13","guid":{"rendered":"https:\/\/www.menaiholidays.co.uk\/blog\/?p=9892"},"modified":"2026-02-12T13:08:50","modified_gmt":"2026-02-12T13:08:50","slug":"are-north-wales-holiday-lets-a-good-investment","status":"publish","type":"post","link":"https:\/\/www.menaiholidays.co.uk\/blog\/are-north-wales-holiday-lets-a-good-investment\/","title":{"rendered":"Are North Wales Holiday Lets a Good Investment?"},"content":{"rendered":"

North Wales has it all \u2014 stunning landscapes, rich history, and a buzzing tourism scene that makes it one of the UK\u2019s favourite staycation spots. So, if you\u2019re wondering whether buying a holiday let here is a clever investment, you\u2019re definitely asking the right question…<\/strong><\/span><\/p>\n

We know the holiday letting world is changing fast, and it can feel a bit daunting if you\u2019re thinking about investing in this area. But here\u2019s the good news: North Wales ranks in the top 10 for holiday let earnings, and demand just keeps growing.<\/p>\n

Yes, the Welsh Government is working on ways to balance tourism with housing and community needs \u2014 but that\u2019s 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\u2019s every chance you can too.<\/p>\n

So, let\u2019s dive in and see why a holiday let in North Wales could be a smart move for you\u2026<\/strong><\/em><\/p>\n

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Thinking of investing in a Holiday Let in North Wales?<\/span><\/h2>\n

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\u2019s clear that this beautiful region is not only resilient but also increasingly popular \u2014 making it a savvy choice for property investors.<\/p>\n

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 \u00a324,000 a year, and the top properties can earn up to \u00a350,000.<\/p>\n

Adding extras pay off too!<\/h4>\n

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 \u00a3213,000 \u2014 much more affordable than popular hotspots like Cornwall \u2014 North Wales offers fantastic rental yields without needing a huge upfront investment.<\/p>\n

All things considered, the mix of affordability and lasting appeal makes North Wales an excellent choice whether you\u2019re a seasoned investor or buying your first holiday let.<\/p>\n

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Reasons Why Holiday Lets Are a Good Investment in North Wales<\/span><\/h2>\n

So, why are holiday lets such a great investment? Let\u2019s take a closer look at why our owners are thriving on their holiday letting journey.<\/p>\n

Strong Demand for Tourism<\/strong><\/h3>\n

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.<\/p>\n

\ud83d\udca1 DID YOU KNOW? According to the recent Sykes Staycation Index Report, Conwy, Gwynedd and Anglesey all feature in the Top 10 most popular regions based on 2025 bookings.<\/a><\/p>\n

High Rental Yields<\/strong><\/h3>\n

Holiday lets in North Wales offer impressive rental returns, with an average gross income of \u00a324,000 annually. Premium properties can generate up to \u00a350,000, especially those with desirable features like hot tubs, coastal views or pet-friendly options. These amenities often command higher rates, significantly boosting overall profitability.<\/p>\n

Investment Incentives (Updated)<\/strong><\/h3>\n

The special furnished holiday let<\/em> tax regime was abolished in 2025, so holiday lets are now taxed like other property businesses. While the old FHL-specific tax benefits no longer apply, standard property tax rules still cover mortgage interest relief and capital gains on disposal. Some allowances remain for furnishing costs, and losses can still be offset against other property income.<\/p>\n

\ud83d\udc49 Head here for a complete Guide to Furnished Holiday Let Tax and Business Rates in Wales.<\/a><\/em><\/p>\n

Affordable Property Prices<\/strong><\/h3>\n

With an average property price of around \u00a3213,000, North Wales is considerably more affordable than other UK holiday hotspots like Cornwall, where prices often exceed \u00a3300,000. This affordability opens the market to a broader range of investors, offering an accessible entry point for those starting or expanding their portfolio.<\/p>\n

Year-Round Appeal<\/strong><\/h3>\n

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.<\/p>\n

Growing Popularity of Staycations<\/strong><\/h3>\n

The rise of staycations, driven by economic factors and global travel uncertainties, has fuelled domestic travel. North Wales, with its breath taking landscapes and easy accessibility, has become a prime choice. This trend continues to bolster demand for holiday rentals in the region.<\/p>\n

Flexibility for Personal Use<\/h3>\n

Many owners also use their holiday lets as occasional holiday homes for themselves or family. This gives a dual benefit: income from guests when the property is rented, and a personal retreat when you want it. Some owners even rotate stays with friends or family, making it a practical lifestyle investment too.<\/p>\n

Growing Demand for Unique Stays<\/strong><\/h3>\n

There\u2019s an increasing trend for experiential travel and unique accommodation \u2014 think converted barns, tiny cabins, or homes with panoramic sea views. North Wales has plenty of opportunities to create properties that stand out in the market, allowing owners to charge higher nightly rates.<\/p>\n

\ud83d\udc49 Head here for a full guide on Farm Diversification.<\/a><\/em><\/p>\n

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Key Features to Maximise Investment Potential<\/span><\/h2>\n

Buying just any property in North Wales and hoping for bookings isn\u2019t enough. It\u2019s important to be realistic about the market and understand that today\u2019s guests expect real value for their money. So, ask yourself: what makes this property stand out? Why would someone choose to book here?<\/p>\n

To make the most of your holiday let in North Wales, consider properties with:<\/p>\n

Proximity to Attractions<\/strong><\/p>\n

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.<\/p>\n

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<\/a> blog to explore our top spots.<\/p>\n

Luxury Amenities<\/strong><\/p>\n

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.<\/p>\n

Garden Areas<\/strong><\/p>\n

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!).<\/p>\n

Pet-Friendly Options<\/strong><\/p>\n

Nearly half of UK holidaymakers now look for pet-friendly accommodation \u2014 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.<\/p>\n

Our guide on maximising your holiday let income<\/a> goes into more detail on all the things you can do to ensure you’re getting the most out of your holiday let.<\/p>\n

Accepting Short Breaks<\/h3>\n

2\u20133 night stays are increasingly in demand, as many guests now prefer frequent, shorter getaways over longer holidays. Offering short breaks helps fill gaps in your calendar, attract last-minute bookings, and ultimately boost your rental income.<\/p>\n

\ud83d\udca1 DID YOU KNOW? Gwynedd is leading the way in terms of short breaks in Wales, with short break bookings up 20%<\/strong>, making it one of the most popular short-stay destinations in the UK.<\/a><\/p>\n

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Challenges to consider when buying a holiday let in North Wales<\/span><\/h2>\n

While the benefits of letting property in North Wales are clear, it\u2019s equally important to be aware of the challenges involved. Our blog on Navigating the New Holiday Let Rules in Wales<\/a> dives deeper into these issues and is well worth a read if you\u2019re considering buying a holiday let in the area. We always recommend doing your homework \u2014 after all, it\u2019s a big decision, and being well-informed makes all the difference!<\/p>\n

Seasonal Income Variability<\/strong><\/h3>\n

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\u2019s possible to manage these fluctuations and maintain a more consistent income year-round.<\/p>\n

New Tourism Tax in North Wales<\/strong><\/h3>\n

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.<\/p>\n

While the tax aims to mitigate tourism\u2019s 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.<\/p>\n

The 182-Day Rule<\/strong><\/h3>\n

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:<\/p>\n

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  1. Be available for letting at least 252<\/strong> days a year.<\/li>\n
  2. Be let for a minimum of 182<\/strong> days annually.<\/li>\n<\/ol>\n

    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.<\/p>\n

    Looking ahead:<\/strong> The Welsh Government has consulted on potential flexibility measures, such as averaging letting days over multiple years or including certain charitable stays, but these changes are not yet law. Partnering with a holiday letting agency<\/a> can help market your property effectively and ensure you\u2019re meeting the required letting days to qualify for business rates.<\/p>\n

    Planning Permission in North Wales<\/strong><\/h3>\n

    Planning rules in North Wales vary by location and have been a topic of conversation recently, so it\u2019s very important to check before buying or converting a property.<\/p>\n