What does a holiday rental in United Kingdom earn?
Across the markets Terrivio tracks, gross yields in United Kingdom typically range from 5–8% and net yields from 2–4% after operating costs and acquisition costs. The spread between the two is the whole story: platform fees, cleaning, management, utilities, insurance and local taxes usually consume 35–50% of gross revenue.
Worked example: a €350,000 property at €150 per night and 60% occupancy books about 219 nights and grosses roughly €32,850 a year (9.4% gross yield). After 25% variable costs and €5,500 fixed costs, NOI is about €19,138 — a net yield of 5.1% on the total investment of €378,000.
Purchase costs and taxes in United Kingdom
Budget roughly 8% on top of the asking price for acquisition costs. The main component is the SDLT standard bands + 5% additional-property surcharge · Scotland ADS 8%. These costs are sunk on day one, which is why Terrivio divides NOI by the total investment — not the asking price — to compute net yield.
Rental profit is taxed at 20–45% income tax; mortgage interest only earns a 20% tax credit. Non-resident landlords must register with HMRC and pay capital gains tax on disposal.
Tourist tax: None nationally · Edinburgh visitor levy 5% from July 2026. It is normally collected from guests but affects your competitive nightly rate.
Short-term rental rules in United Kingdom
Greater London limits whole-home short lets to 90 nights a year without planning permission. Scotland requires an STR licence for every property; England is introducing a national registration scheme and a dedicated planning use class.
Regulation is the biggest single risk in European STR investing. Terrivio's risk score weights regulatory risk at 25% and flags night caps, licence requirements and enforcement intensity for every analysed listing.
Where to look: cities and portals in United Kingdom
Popular short-term rental locations include London, Edinburgh, Cornwall, Lake District, Bath and Brighton. Each has a different seasonality profile — Terrivio shows the 12-month revenue curve so you can see how much of the year carries the return.
Listings are mostly published on Rightmove, Zoopla and OnTheMarket. Terrivio reads these portals directly: paste the listing URL and the pipeline extracts price, size, rooms and location automatically.
How to analyse a United Kingdom listing with Terrivio
- Copy the listing URL. Open the property on Rightmove or another supported portal and copy the address bar URL.
- Paste it into Terrivio. Terrivio scrapes the listing, geocodes the address and pulls market ADR and occupancy for the segment (property type, bedrooms, location).
- Review yield and cashflow. You get gross and net yield, NOI, monthly cashflow, break-even occupancy and 10-year IRR — using United Kingdom-specific acquisition costs and taxes.
- Check risk, tax and rules. The report shows the 10-dimension risk score, the recommended tax regime for United Kingdom and the STR rules that apply to the exact city.
Frequently asked questions
Is a holiday home in United Kingdom a good investment in 2026?
It depends on the micro-location and on regulation. Typical net yields are 2–4%; the best results come from locations with year-round demand and clear licensing. Always model the net figure, not the gross.
How much are purchase costs in United Kingdom?
Plan for roughly 8% of the price: SDLT standard bands + 5% additional-property surcharge · Scotland ADS 8%, plus notary, registry and agent fees where applicable.
Do I need a licence to rent out short-term in United Kingdom?
Greater London limits whole-home short lets to 90 nights a year without planning permission. Scotland requires an STR licence for every property; England is introducing a national registration scheme and a dedicated planning use class.
Which United Kingdom property portals does Terrivio support?
Terrivio analyses listings from Rightmove, Zoopla and OnTheMarket and 40+ other European portals. Paste any listing URL to start.