Matlock in Derbyshire has been named the top holiday letting hotspot for investment in 2026 according to new research from Sykes Holiday Cottages.
The Peak District town ranked first in the company’s latest Holiday Letting Outlook Report, which analysed booking and revenue data from more than 23,500 UK holiday rentals managed through the platform.
The study found holiday let owners in Matlock earned an average annual income of £34,000 in 2025, around 33% higher than the UK average, while bookings per property increased by 14% year-on-year, reflecting growing demand from visitors.
Warkworth in Northumberland and Castleton in Derbyshire were ranked second and third respectively in the 2026 investment hotspots list. The ranking considers factors including annual income, occupancy levels, booking growth and wider market dynamics such as regulatory changes affecting the sector.
YEAR-ON-YEAR GROWTH
Several other destinations across England also featured prominently, including Chester, Durham and Hunstanton, while locations in the Lake District – including Grasmere, Ambleside and Bowness-on-Windermere – continue to generate some of the highest average incomes for owners.
Across the top ten locations identified in the report, average annual income ranged from £25,500 to £45,900, with many areas also reporting year-on-year growth in bookings.
The report also found many holiday let owners are adapting their strategies to maximise income.
Around 37% plan to increase the number of days their property is available for bookings, while the same proportion intend to invest in upgrades to facilities. A further 27% are looking to cut costs by switching energy suppliers or installing energy-saving technology.
Allowing short breaks and multiple bookings within a week is also becoming more common. According to the analysis, owners who adopt this approach secure around eight additional bookings per year and up to 25% more revenue.
CONFIDENCE AND CLARITY
James Shaw (main picture, inset), Chief Commercial Officer at Sykes Holiday Cottages, says: “A town lesser known by holidaymakers, Matlock has a variety of draws, including its beautiful countryside and quirky tourist scene.
“As the holiday let market remains effected by changing regulations and tax rules, those taking the leap may want to look closely at locations like Matlock, Warkworth or Castleton, as each hold strong investment opportunities – indicating above average income and yearly increases in bookings.
“Despite the industry continuing to evolve, staycations remain popular, and we expect 2026 to be a record-breaking year for bookings. Our report is designed to give owners the confidence and clarity they need to navigate the market successfully, whatever changes they might face.”
