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Wales tops list of most profitable holiday let areas

Research from holiday property fund, Second Estates, reveals that holiday lets in Wales provided owners the greatest yields at 11.7% over the past twelve months, followed by Northumberland where investors saw yields of 11.5%. This is considerably higher than the national average of 10.3%. In comparison, holiday lettings in Dorset and the South Coast are seeing the lowest gross yields, on average 5.9%.

Areas with lower than average, but stable, property prices are seeing the highest yields. The current average property price in Wales is £152,999, significantly lower than the UK average of £224,144.

Northumberland is also seeing a similar trend with property prices, but yields continue to stay high as holiday lets in the area are experiencing the longest seasons, receiving 280 days of bookings a year on average.

In comparison, properties in Dorset and the South Coast are also seeing an average of 280 days of booking a year. However the higher property prices in the region, the current average is £249,839, means that investors are seeing a considerably lower yield from their investment.

Alistair Malins, CEO at Second Estates, says: “As the UK tourism industry continues to boom investors can expect to see higher yields and returns in holiday lets compared to other property investments.”

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