Journal
A Guide to Buying a Holiday Let in Yorkshire
Owning a coastal cottage in Yorkshire can be both rewarding and profitable—but getting from idea to income takes a clear plan. This guide walks you through buying a holiday let and setting up a holiday let business in Yorkshire, with the latest rules, 2025 demand trends, and practical steps to launch confidently.
Talk to our Owner Team
Are you a new or established owner considering your options and require a tailored income forecast, or simply need local advice? Contact the team here
Skip ahead to:
- Is a Yorkshire holiday let right for you
- Where to buy a holiday let in Yorkshire
- Rules tax registration 2025 – 26
- National Park Considerations
- How to set up a holiday let business
- Partner with Yorkshire Coastal Cottages
Is a Yorkshire holiday let right for you?
The UK holiday letting sector has reported record bookings heading into 2025, with owners continuing to see strong profitability when properties are well located and professionally managed. In 2025, couples (42%) and adult groups (28%) dominated bookings, with shorter lead times and continued demand for short breaks — great news for stylish 1–2 bed cottages with flexible calendars.
Our parent company, Sykes Holiday Cottages, provides valuable insight in its Holiday Letting Outlook Report 2025.
Yorkshire also benefits from strong seasonality: Whitby topped UK winter booking hotspots last year, with Scarborough in the top ten — clear evidence the coast performs beyond summer when properties are designed for year‑round comfort. To maximise this, consider:
- 2–4 night short breaks
- Keeping last‑minute availability open
- Adding winter‑friendly touches such as a log burner, hot tub, or cosy coastal décor
As a benchmark, average UK holiday‑home earnings are cited at around £24.7k per property (varying by quality and location). Pet‑friendly homes typically achieve more bookings and higher booking values, making this a useful consideration for Yorkshire’s year‑round market.
Where to buy a holiday let in Yorkshire
Whitby – Image Steve Allen
Whitby & Sandsend
Whitby has blockbuster all‑season appeal—Abbey, heritage coast, history, festivals and moors access—plus proven winter demand. Sandsend is just at the end of the sandy stretch of beach, further along from Whitby, a quaint fishing village with that cosy appeal.
Scarborough, Filey & the Heritage Coast
This area of the beautiful coastline has a diverse market, especially with families, couples, groups, and with shoulder‑season opportunities too. Scarborough and Filey is popular, especially for sea‑view apartments and 2–3 bed houses with hot tubs/EV chargers, plus having flexible short‑break calendars helps attract year round bookings.
Robin Hood’s Bay, Runswick Bay & Staithes
These picture‑perfect coastal villages are known for their steep cobbled streets, historic smuggler connections, and dramatic cliff-side settings. Robin Hood’s Bay, Runswick Bay together with Staithes are very popular in the peak weeks but also attract mainly walkers outside school holidays.
North York Moors villages (Goathland, Grosmont, Egton)
The North York Moors locations are perfect for all‑season walking and heritage rail enthusiasts. Note that refurbishments or alterations must respect the National Park Design Guide and Dark Skies policies. See the section below
Lastingham Village. Image Mark Bulmer
Rules, tax & registration
Furnished Holiday Lettings Tax Regime Abolished
- Mortgage interest relief is restricted to basic‑rate credit for individuals.
- No new capital allowances for FHL; domestic items relief for replacements continues.
- Certain trading Capital Gains Tax reliefs (incl. Business Asset Disposal Relief (BADR) and rollover relief—will no longer apply after the operative date. This may change your long‑term strategy if you plan to sell or reinvest.
Read our helpful blog about Tax for Furnished Holiday Lets Explained, and understanding Stamp duty on holiday lets
Your Legal Responsibility as a Holiday‑Let Owner
Gas engineer – Shutterstock
All holiday‑let owners must legally ensure their property is safe for paying guests.
If you host paying guests, you are legally required to:
- Conduct and maintain a written fire risk assessment
- Install and regularly check smoke alarms and carbon monoxide detectors
- Ensure all furnishings and appliances are safe and compliant
- Keep up‑to‑date with Gas Safe certification
- Keep a current EICR (Electrical Installation Condition Report)
- Provide clear escape routes and guest safety information
Even though the government is working towards a national registration scheme, it’s not yet in place. Until then, it remains entirely the owner’s responsibility to meet all fire‑safety and property‑safety requirements, so keeping thorough documentation and staying ahead of requirements is essential.
National Park Considerations
If you’re investing in or operating within a National Park—particularly the Yorkshire Dales or North York Moors—there are additional planning and design expectations to be aware of.
Yorkshire Dales National Park
Policy discussions are moving toward principal‑residence restrictions on some new housing developments, aimed at balancing local homes and holiday accommodation. Why it matters: Existing properties are generally unaffected, but if you’re considering a new‑build purchase, it may influence availability and planning conditions.
North York Moors National Park
Expect high design standards, especially around external works, materials, and lighting—partly to protect its celebrated Dark Skies status. So if you’re planning refurbs or exterior upgrades, we recommend building in extra time and budget for approvals. Need more information on planning application advice, click here
How to Set Up a Holiday Let
1. Know Your Guests
Across the Yorkshire coast and moors, couples, walkers, and adult groups dominate bookings throughout the year, whilst families in peak holiday months due to school holidays
We know from many years of holiday letting that creating a stay that wows will generate bookings and repeats too. Holiday makers love: king beds, hotel‑quality linen, rainfall showers, and a log burner for cosy evenings after cliff‑top walks. Plus, don’t forget outdoor space to sit and relax will be appreciated too, and making sure your property is neatly presented will help create the best first impression and encourage guests to book with confidence
Read our helpful blog on what guests are looking for in a holiday let.
2. Choose the Right Micro‑Location
Decide what type of getaway you want to offer:
- Coastal favourites – Whitby, Sandsend, Robin Hood’s Bay, Scarborough and Bridlington
- Peaceful villages – Moors-edge hamlets for walking, views and tranquillity
Check essentials like parking, dog‑friendly access, nearby pubs, and easy walking routes, all of which drive year‑round appeal.
Calm Waters Luxury Beach House, Bridlington Ref. 1182106
3. Run the Numbers
Plan your finances using standard property tax rules from April 2025. Include: mortgage interest (basic‑rate credit), domestic items relief, utilities, laundry, cleaning, insurance, agency fees and a maintenance budget. To help, we’ve created a blog on costs to think about when running a holiday let
Our New Owner Team can share tailored earning projections and local booking trends so you start with clear expectations.
4. Planning & Legal Checks
Before converting or refurbishing, check:
- Any covenants or title restrictions
- Conservation area or listed‑building status (common in heritage towns like Whitby & RHB)
- North York Moors National Park design standards (Dark Skies, materials, lighting)
- Local Article 4 implications
A quick review now saves time later.
5. Stay Fully Compliant
Owners must legally keep guests safe. Make sure you have:
- A fire risk assessment
- Interlinked smoke & heat alarms
- Carbon monoxide detectors
- EICR & GasSafe certificates
- Public liability insurance
We provide clear compliance guidance and can recommend trusted local tradesmen to help you meet safety requirements smoothly.
6. Fit Out for High Bookings
Yorkshire guests value comfort, practicality and character.
- Fast Wi‑Fi & smart TV
- Well‑equipped kitchen, including coffee machine and air fryer
- Pet‑friendly touches (throws, washing facilities, toys, enclosed spaces)
- Outdoor seating for coastal sunsets
- Optional extras like EV chargers or hot tubs
Hare’s Hill, Thornton-Le-Dale Ref. 1165100
Did you know? Pet‑friendly, well-equipped homes typically secure more short breaks and off‑peak stays. Need tips on how to make your cottage pet-friendly
7. Smart Pricing & Visibility
Together with parent brand Sykes Holiday Cottages, Yorkshire Coastal Cottages has a Revenue Management team that uses a unique, dynamic pricing tool to help holiday let owners earn as much as possible from their bookings. Our team uses real‑time insights to adjust prices and keep your cottage earning at its best throughout the year.
From timing your listing to reach the right people, to leveraging the Sykes Holiday Cottages network, we make sure your Yorkshire Coast property is seen. Thanks to 500+ partners, your home gets standout exposure—locally and worldwide.
Partner with Yorkshire Coastal Cottages
At Yorkshire Coastal Cottages, we pride ourselves on the outstanding local service we offer, delivering positive results with high levels of bookings and income for our owners. We can provide support and advice on every aspect of making your investment a success, from planning and development to income forecasts and interior design.
Meet our local team based in Whitby
New to holiday letting? With our tailor-made service and years of experience, we can guide and support you to ensure that when you start your holiday let business, you get the best out of your property.
Whether you have a second home for your own use that you want to pay for itself, or if you are looking for an investment opportunity, we’ll be by your side every step of the way. For more detailed information, read our blog on are holiday lets a good investment?
If you would like to find out more about letting your holiday home, call our experienced team on 01947 820949. Alternatively, complete the short form on our website and a member of our team will be in touch soon.
As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time. Nothing in this article constitutes the giving of financial, tax or legal advice to you; please consult your own professional advisor (accountant, lawyer etc). In this regard. If we have referred within the article to a third-party provider of unregulated holiday let mortgages, this is due to the fact that such mortgages aren’t currently regulated by the FCA.
As a helpful reminder, your home may be repossessed if you do not keep up repayments on a mortgage, so again, anything you decide to do in this particular are,a this is one on which you should take your own professional advice on too, as we aren’t providing and can’t provide you with this.