Top UK holiday let hotspots revealed.

• Scotland dominates the list with Dundee taking top spot
• Cumbria has the highest yields in England for short-term lettings
• Airbnb popularity creating opportunities for savvy investors

The well-known tourist traps on England’s south coat may be the obvious choice for landlords looking to invest. But the latest study into the largest yields for short-term lets shows they may find better returns on their investments north of the border.

Our research, which uses data from real estate investment company Yuvoh, put Scotland top of the pile, with Dundee, Glasgow and Fife taking the top spots.

Marc Goldberg, commercial CEO, said: “The popularity of staycations and short-term lets has increased over the past few years and, as our research demonstrates, landlords can make if they invest wisely.

“With holiday let yields outperforming the residential buy-to-let market, investors are taking advantage of increasingly attractive short-term lets which offer high-yields for relatively lower risk.”

In Dundee, property investors can expect impressive yields of 15.1 per cent if the property is used for holiday letting. In recent years, the city has reinvented itself as a cultural hub with the opening of the V&A Dundee, Scotland’s first design museum, proving a significant lure.

As a result, the city’s International stock has risen hugely with The Wall Street Journal ranking it number five on its ‘Worldwide Hot Destinations’ list last year.

Coming in just behind Dundee is Glasgow, where savvy landlords can achieve average yields of 14.4 per cent. The fifth most visited city in the UK, Glasgow holds the title of UNESCO Creative City of Music.

Although Scotland dominates the list, there are still many places in England that provide a considerable return on investment.

Taking the crown as the top English county is Cumbria, home to the Lake District National Park, where average yields stand at 12 per cent. The Lakes alone receive more than 19 million visitors from across the world each year, and is a sought-after destination for holiday lets.

Similarly, Merseyside appears at number 13 on the list with average yields standing at 11.6 per cent. Home to The Beatles it has the second-highest number of art galleries and national museums in the UK. The county is also home to popular beaches, golf courses, and Aintree Racecourse which hosts the Grand National.

Greater Manchester is also an attractive proposition for investors, offering average yields of 11 per cent. Home to the third-most visited city in the UK, the area is notable for its architecture, culture, musical exports and Premier League football teams. The city is also famous for its Christmas markets which attract more than nine million visitors each year throughout November and December.

For landlords looking to invest in Southern England, Suffolk offers the best return on investment with yields of 9.9 per cent. The only other southern county offering average yields of at least 9 per cent is Cambridgeshire. Landlords with properties in popular holiday destinations Devon, Cornwall and Dorset return yields of around 7.5 per cent.

In Wales, West Glamorgan leads the way, achieving average yields of 13.2 per cent, only bettered by five other counties in the UK. It’s also home to the Gower Peninsular, the first area in the UK to be designated as an Area of Outstanding Natural Beauty.

Meanwhile, the North Welsh counties of Clwyd and Gwynedd offer yields of 10.3 per cent and 10.2 per cent, respectively. Popular tourist destinations such as Anglesey and Llandudno add to its appeal.

Gautam Pandey, director of Yuvoh said: “When looking at property investment you need to find the right strategy and location to ensure the risk and returns are appropriately measured.

“Holiday lets and serviced accommodation are becoming the go to strategy for sophisticated landlords and Yuvoh can help these landlords get guidance on the expected occupancy and daily rate so they can be more informed when investing. We have been working with lenders to give them the same level of comfort on their lending to help facilitate borrowers achieve their investment goal.”

Top 20 holiday let hotspots for greatest rental yield