Have you ever thought about buying a holiday home in Devon to let out as a business? If you have, we explore the various topics which highlight the opportunities, key considerations and steps required to make the most out of your holiday let investment.
By making the right decisions at the very start of your holiday letting journey, you can both maximise the return on your investment, and enjoy the benefits of owning your own bolthole for personal getaways.
We understand getting the practicalities of a holiday letting business right may seem daunting. But with sound advice, proper research, and a good market insight, you’ll be on your way to letting success.
Use the quick links below to navigate to a specific topic or continue reading for our detailed guide on buying a holiday home in Devon to let.
Is now a good time to buy a holiday let in Devon?
Despite evolving regulations and a changing financial landscape, 2026 continues to offer strong potential for those investing in a UK holiday let. The market has matured since the post-pandemic surge, but demand remains robust — particularly in sought-after destinations like Devon.
Demand for UK breaks is going nowhere
According to the Sykes Staycation Index 2025, UK staycations continue to show resilience, with 63% of Brits planning a UK break in the next 12 months, and over a third intending it to be their main holiday. In Devon specifically, bookings per property rose 3% year-on-year in 2025, despite wider economic pressures. Shorter, more flexible trips are driving demand, with 40% of bookings now made up of short breaks, and couples accounting for 42% of stays.
Ease of travel, variety of destinations and the ability to holiday closer to home mean UK breaks – particularly in sought-after regions like Devon – remain firmly in demand.
Navigating change with confidence
While the removal of the Furnished Holiday Let tax regime in April 2025 does alter the landscape, many owners are already adapting. In fact, the Sykes Holiday Cottages 2025 Holiday Letting Outlook Report shows that 39% of holiday let owners are choosing to increase availability, and 33% have raised rates to maintain profitability.
Where to buy a holiday home in Devon
If you are looking at investing in a holiday let, where should you buy? Apart from your personal preference, it is important to choose a location that appeals to holiday makers when buying a holiday home to let in Devon. A prime tourist location will ensure a high volume of bookings and a good return on investment.
Desirable location features
In our experience, the top three location features to consider are sea views, parking and short distance to a beach or town. Other considerations include a garden / outside area and Wifi. Properties with at least one of these features are well placed to succeed.
For those finding it hard to settle on a specific area to make their property purchase, keep in mind the different audience each place tends to attract. Dartmoor is superb for walkers, many of whom own dogs and would need pet-friendly accommodation. Salcombe or Exmouth are popular with families looking for a seaside holiday, whilst cosy chocolate-box thatched cottages nestled in the South Devon National Landscape are ideal for romantic getaways.
Wherever you opt for, proximity to good amenities is one of the most influential factors in a guests’ choice of holiday home. Being situated within easy reach, or better still, walking distance of a pub, restaurant, shops, and visitor attractions will boost a holiday homes desirability and booking performance.
Top‑performing locations to consider
According to the 2025 Sykes Cottages Staycation Index, Devon continues to stand out as one of the UK’s most desirable destinations for self-catering holidays, ranking as the fourth most popular staycation destination overall.
Within the county, demand is being driven by a mix of well‑established resorts and emerging coastal hotspots. In fact, four of the Top 10 trending locations in the UK for 2025 were in Devon – Brixham, Teignmouth, Paignton and Bideford. This highlights strong and growing guest interest across both South and North Devon.
East Devon is a popular holiday spot and hosts the first section of the Jurassic Coast. Likewise, North Devon is renowned for its dramatic coastline and sandy beaches including Woolacombe, Saunton and Westward Ho!
Saunton Sands
While holidaymakers are prepared to travel an average of 3 hours and 26 minutes to reach their destination, ease of access can still influence booking decisions, making well‑connected areas of Devon particularly attractive for buyers.
For anyone buying a holiday home in Devon, these trends underline the importance of choosing a location that balances guest demand, accessibility and long‑term appeal.
Key benefits of buying a holiday let
Little Silver Leaf
Buying and setting up a holiday home to let represents a significant financial commitment. Understanding the advantages from the offset can help guide your journey.
Your own holiday destination
Undoubtedly one of the key motivators in buying a property, is the luxury and convenience of having your own holiday destination. A home away from home, where happy memories can be made. Buying a holiday home to let allows you the opportunity to have a lucrative letting business which offsets the cost of having your own holidays.
Higher income potential
Another reason people are getting onto the second-property ladder is that holiday homes can prove highly lucrative. Especially at peak times of the year. During the busy summer months, the earnings from holiday lets are significantly higher than the returns on a normal long term let. According to the Sykes Holiday Letting Outlook Report 2025, the average income for a holiday let owner in 2024 was £24,700 (up from £24,500 in 2023), meaning you’re likely to make a lucrative return on your investment.
Buying a holiday let as a potential retirement property
For many, a key benefit is the potential of a future nest egg. A place to retire or part of a pension investment. Often, you’ll find that popular retirement locations are likely to be sought after areas with holiday makers too. So, where better to acquire a future lifestyle financed by others in the place where you enjoy your holidays best?
Cover the costs of improvements at your holiday cottage
Any income received from letting your holiday cottage will naturally cover the running expenses, but also allow you the means to add extra facilities and pay for improvements. A successful holiday let should generate a steady income. This will allow you the chance to improve your property with your future needs in mind.
Lucrative future sale of your property
As with most properties across the UK, inflation means that your holiday home will always be worth more in the future. Provided you choose the right property, and keep it up to standard, you can expect it to go up in value over time. A proven successful holiday let business will attract buyers and benefit from a good asking price. This translates in additional profit when you sell.
Consider who will be staying at your holiday cottage
Before buying a property, the key to success is understanding your preferred target market. Will you be catering for guests looking for a spacious getaway that’s suited to families? Or is it a romantic seaside bolthole or a secluded woodland cottage for couples? The size, type and location of a holiday property will naturally dictate who you attract.
Couples retreat
If you’re buying a one or two bedroom holiday home, your property will strongly appeal to today’s staycation market. According to our 2026 Holiday Letting Market Insights Report, 42% of bookings were made by couples, making smaller properties an excellent option for buyers targeting romantic breaks, short stays and off-peak travel. These types of properties continue to perform particularly well in popular Devon locations and coastal hotspots.
Group getaways
Larger properties also remain in demand. The report shows that 29% of Helpful Holidays’ bookings were made by adult groups, while a further 26% were family bookings. Investing in a four or five bedroom holiday home that caters for groups and larger families can therefore be a lucrative choice, particularly in destinations that lend themselves to social gatherings and multigenerational stays.
When targeting this market, it’s important to ensure there’s ample space for guests to eat, sleep and relax comfortably, with a good balance between living areas and bedrooms.
Dog-friendly holidays
A very important part of the family to be considered is the four-legged member. Perhaps your holiday home and the area are well suited to dog owners? Having a property that is pet-friendly means you can attract a wider audience. Our report shows that 27% of all bookings included a pet. Our dog-friendly properties see, on average, 8% more bookings and 16% higher annual revenue on average.
Key considerations when buying a holiday home to let
There are a number of things that are specific to owning and running a holiday let. Some may not be obvious, so we’ve collated key considerations to help with your holiday letting journey.
Holiday let mortgages
If you require financing to buy your holiday home, you will face increasingly stringent affordability criteria from mortgage lenders. Unsurprisingly, they require evidence that you will be able to keep up with the repayments on your second home – especially if you have a mortgage for your current property.
They often require a letter from a reputable holiday letting agent. This is to confirm the anticipated gross weekly rental for the low, mid, and high seasons. The good news is, Helpful Holidays are a recognised source for lenders and can provide a letter including an annual projected income to support your mortgage application.
Complete the form below to request contact from our team, who can offer information and support for your holiday home mortgage application.
For detailed advice on the subject, read our outline on guidance to holiday home mortgages.
Health and safety regulations for holiday lets
Buying a holiday home means you have a duty of care to your guests. It means you are legally obliged to provide safe accommodation and do everything you can to minimise the risk from potential hazards. To understand the main points to consider and comply with, read our blog on health and safety regulations for holiday lets.
Holiday let management
When buying a holiday home in Devon to let, choosing how it is going to be managed is an important decision. Managing your holiday home yourself may be a cost-effective option but it is time consuming. You need to make sure that you have enough time available to commit to this.
Using a holiday let management company is an efficient way to save time and reduce the day‑to‑day demands. Choosing the right agency for expert advice and support can make a significant difference to your success. A specialist team like Helpful Holidays will help to maximise your property’s earning potential in the competitive South West self‑catering market.
Costs when buying a holiday home to let in Devon
Stamp duty land tax
Another consideration if you’re planning to buy a holiday home to let is stamp duty. If you’re purchasing an additional home, you’ll have to pay an extra 5% in stamp duty land tax, on top of the current rates. For specific details and up-to-date stamp duty rates for second homes, read our guide to holiday let tax.
Council tax and business rates
Owning a holiday home will mean you are responsible for paying either council tax or business rates to the relevant authorities. Which one you need to pay depends on how often you let the property, and it’s important to understand what the distinction is.
For clarity on which would apply to your situation, read our blog on holiday let council tax vs business rates.
Holiday let insurance
Standard home insurance will not provide adequate cover for a holiday let. Therefore, you’ll need to take out specialist holiday home insurance.
If you plan on renting out your holiday home, you’ll need to consider including public liability cover as part of your holiday home insurance policy. If the property is going to be left unoccupied for long periods of time, it is important you’re covered for the raised risk of water leaks, burst pipes and theft.
Read our guide on how to prevent water leaks in your holiday let.
Furnishing a holiday let
Another important cost to consider is the purchasing of furnishings for your holiday home. We recommend buying quality, hard-wearing furniture that will last several seasons. For more specific advice, read our blog on buying beds for holiday homes.
Holiday let yield in Devon
The size and flexibility of holiday properties can affect the potential return on investment. A larger property allows for higher rental prices, as well as appealing to a wider market. It can accommodate various groups of guests and as a result, the property is more likely to generate bookings throughout the year.
If you would like to know how much your investment will return, we can help by providing a free income appraisal. Helpful Holidays has been successfully managing and marketing holiday homes for over 40 years. Our team has the knowledge and experience to help advise you on buying and setting up a holiday home, ensuring a maximum return on your investment.
If you’d like a free, no-obligation bookings and income proposal for a property you’re interested in buying, complete the form below.
Expert advice on buying a holiday let
As with all investments, buying a holiday home to let comes with some risk. Our property team can help you avoid the pitfalls and assist you through every aspect of buying and letting. No matter where you are in your letting journey, we have the help and advice to take the hassle out of holiday letting. For more helpful tips and suggestions, head over to our Owner Advice Blog.
At Helpful Holidays, our team of holiday letting experts are on hand to offer advice. We’re happy to help answer any questions you may have on a particular subject. To find out more about letting with us and request your FREE guide, complete the form below.
