Glasgow Beats Edinburgh and Liverpool as Best UK Holiday Home City
New study reveals Glasgow offers best balance of affordability, rental returns, and tourism demand, followed by Liverpool and Edinburgh
Buying a holiday home has long been a dream shared by countless Brits, whether for weekend escapes, retirement plans, or investment income. But with property prices varying wildly across the UK and rental markets constantly shifting, knowing where to invest can feel like a gamble. Now a new study is revealing the best UK cities to buy a holiday home, analysing everything from house prices and rental yields to tourist footfall and long-term growth potential. Property experts at Kaybridge Residential conducted the study by creating a Holiday Home Appeal Score for UK cities, which combined key property and tourism factors to identify locations that balance affordability, rental returns and investment growth.
“The holiday home market has changed dramatically in recent years,” says Kevin Barzegar, property expert at Kaybridge Residential. “In addition to looking for a good location, buyers want properties that can generate income when they’re not using them, and cities that show strong growth potential for the future.” Kaybridge Residential analysed UK cities between 2019 and 2025, combining five key factors into a single Holiday Home Appeal Score (0-100). The study examined average house prices, rental yields, occupancy rates, five-year house price growth, and annual tourist visitors.
Each factor was weighted based on importance, with rental yield carrying the highest weight at 25%, followed by occupancy rate, price growth and tourist visitors at 20% each, and average house price at 15%. Cities were then ranked to reveal the top 10 locations offering the best balance for holiday home buyers.
Top 10 Best UK Cities to Buy a Holiday Home
| Rank | City | Average House Price (£) | Rental Yield % | Occupancy Rate % | 5-Year House Price Growth % | Annual Tourist visitors | Holiday Home Appeal Score |
| 1 | Glasgow | £157,900 | 7.8% | 73% | 34.38 | 685,000 | 64.96 |
| 2 | Liverpool | £165,700 | 7.7% | 54% | 43.84 | 900,000 | 55.54 |
| 3 | Edinburgh | £279,300 | 6.0% | 85% | 17.07 | 2,324,000 | 50.67 |
| 4 | Newcastle | £160,400 | 7.7% | 57% | 26.51 | 209,000 | 50.37 |
| 5 | Manchester | £234,000 | 6.6% | 60% | 39.54 | 1,721,000 | 48.39 |
| 6 | Belfast | £192,200 | 5.8% | 66% | 35.90 | 1,700,000 | 46.85 |
| 7 | Aberdeen | £135,500 | 8.3% | 61% | -8.55 | 216,000 | 44.68 |
| 8 | Nottingham | £205,400 | 6.6% | 56% | 35.12 | 217,000 | 43.70 |
| 9 | Sheffield | £176,400 | 6.5% | 54% | 30.75 | 1,980,000 | 42.88 |
| 10 | Southampton | £258,800 | 6.6% | 67% | 19.79 | 54,000 | 42.79 |
1. Glasgow Leads With Affordable Prices and Strong Returns
Glasgow claims the top spot, thanks to its winning combination of affordability and income potential. At an average price of £157,900, it’s one of the cheapest cities on the list, making it accessible for first-time holiday home buyers.
“Glasgow offers something rare in today’s market, affordability without sacrificing returns,” says Barzegar. “Properties are reasonably priced, but the rental income is strong because of consistent tourist demand and high occupancy rates.”
The city has also seen impressive growth, with house prices rising 34.38% over five years. While the 685,000 annual tourist numbers aren’t the highest on the list, the steady flow of visitors supports reliable rental bookings.
2. Liverpool Balances Growth With Tourism Appeal
Liverpool comes second, offering a slightly higher entry price of £165,700 but delivering the strongest five-year house price growth on the list at 43.84%.
“Liverpool has been one of the UK’s property success stories in recent years,” explains Barzegar. “Buyers are drawn to the combination of capital growth and rental income, plus the city’s cultural appeal brings in a lot of tourists (900,000) each year.”
For investors prioritising long-term value alongside rental returns, Liverpool represents a solid choice with proven growth momentum.
3. Edinburgh Offers Premium Tourism Demand
Scotland’s capital ranks third, though it takes a different approach to value. At £279,300, Edinburgh has the highest average house price in the top five, but it compensates with the highest occupancy rate on the entire list at 85%.
“Edinburgh is the premium option,” says Barzegar. “Yes, you’re paying more upfront, but with so many tourists (2.3 million) visiting annually, demand for short-term rentals is enormous. The city’s high occupancy rate (85%) means your property is rarely sitting empty.”
4. Newcastle Delivers Northern Affordability
Newcastle offers another affordable northern option at £160,400. The city matches Liverpool’s rental yield of 7.7% and has a respectable occupancy rate of 57%, suggesting decent rental demand throughout the year.
“Newcastle punches above its weight for holiday home buyers,” notes Barzegar. “It’s affordable, delivers strong rental yields, and has seen huge house price growth. For buyers looking at northern cities, it’s a solid alternative to Liverpool or Manchester.”
With 209,000 annual tourists, Newcastle doesn’t have the visitor numbers of larger cities, but its lower prices and strong yields make it appealing for investors focused on income rather than tourism hotspots.
5. Manchester Combines Growth With Major Tourism
Rounding out the top five we have Manchester with an average house price of £234,000. The city offers a rental yield of 6.6% and an occupancy rate of 60%, while attracting 1.7 million tourists annually.
“Manchester is where serious tourism meets strong investment fundamentals,” says Barzegar. “House prices have grown significantly (39.54% over five years), making it one of the best performers for capital appreciation. Add in major tourist appeal and decent rental returns, and you’ve got a well-rounded investment.”
For buyers wanting a city with both lifestyle appeal and financial returns, Manchester’s combination of growth, tourism and rental performance makes it a compelling choice.
The best holiday home is one that’s both beautiful and financially practical when you’re not using it. These top cities show that affordability and returns can go hand in hand, particularly in northern locations.
Glasgow and Liverpool prove you don’t need to spend a fortune to get strong rental yields and growth potential. Meanwhile, Edinburgh shows that paying more upfront can be worthwhile if occupancy rates justify the investment.
For buyers prioritising income, look at rental yields above 7% and occupancy rates over 60%. For those focused on long-term value, cities showing 30%+ growth over five years signal strong market confidence. The sweet spot is finding locations that deliver both, which is exactly what these top-ranked cities offer.