Traditional Holiday Cottage Investment vs. Modern UK Lodges

People have been investing in holiday property in the UK for many years, it’s nothing new.

For owners looking for personal enjoyment and strong returns, investing in a holiday home makes a lot of sense.

But, with a changing market, holidaymakers wanting different things from their time away and rising costs, more investors are thinking about making the switch from traditional holiday cottages to modern lodges.

According to Visit England, spend on overnight trips in England in 2024 was 5% above 2023 and 3% above 2022.

This shows that strong rental yields aren’t out of the question.

But, does moving from holiday cottages to modern UK lodges make sense?

Modern UK Lodges

Why Investors Are Rethinking Traditional Holiday Cottages

There’s nothing wrong with traditional holiday cottages, and they are still hugely popular.

This is backed up by Sykes Holiday Cottages, whose January 2026 Holiday Letting Pulse Report shows that guests are planning cottage holidays further ahead in 2026, with many specifically interested in Christmas, Easter and February Half Term.

The same report also shows that couples are the largest segment booking 2026 holidays at the moment, accounting for nearly 40% of all bookings.  

But, with 50% of bookings made by solo travellers in January being for stays in January and February, there’s also a strong demand for last minute, solo plans.

All of this shows that people are still interested in traditional holiday cottages, but investors still have a lot of reasons to rethink things.

Traditional holiday cottages can still command strong seasonal demand, but there are downsides.

Many furnished, short-term holiday lets are now taxed similarly to traditional buy-to-lets, and the cost can be high for a holiday cottage.

They’re also becoming increasingly complex to operate.

For self-catered cottages, managing bookings, cleaning, linen and maintenance can feel like running a hospitality business, rather than a simple property investment.

There’s also the issue that rural cottages often depend on peak summer demand, and owners are increasingly having to invest in professional marketing or dynamic pricing tools to stay competitive, with very little interest during the off-season.

These factors have pushed some investors towards alternative short-stay alternatives, especially upgrading to holiday lodges.

Modern UK Lodges

The Benefits of Choosing Modern UK Lodges

Lower Purchase Price

Modern holiday lodges typically cost significantly less than holiday cottages, as they’re not brick-and-mortar properties.

According to Holiday Park Advice Centre, the cost of a luxury lodge can vary from as little as £25,000 all the way up to hundreds of thousands of pounds.

Potential Income Yields

While exact returns vary by park, region and letting strategy, professional lodge investments often have strong yields.

Simpler Management and Park Support

One big advantage is optional managed letting, which are lodges on holiday parks that come with letting support.

This removes the stress of handling bookings, cleaning and guest services, for a fee. 

This can reduce the day-to-day work compared with independently marketing holiday cottages on booking platforms.

Considerations Before You Make the Switch to a Modern UK Lodge

  • Understand All Running Costs – While purchase prices are lower for lodges, annual park fees need to be factored into financial planning.
  • Check Lease Terms and Park Rules – Some parks operate on leasehold arrangements or have strict usage rules about guests, subletting and owner access, so take time to review contracts before buying.
  • Location Still Matters – Just like cottages, modern UK lodges in coastal, lake or countryside destinations with strong tourism draw tend to generate the highest occupancy and yield.
  • Expect a Changing Market – The wider UK holiday rental sector is evolving, with regulatory shifts and economic factors impacting demand, which can affect investments.

Does Switching From a Holiday Cottage to a Lodge Make Sense?

For many buyers and investors, modern lodges offer a lower cost entry into the holiday property market, greater potential yields and simpler management, especially when paired with letting services. 

Compared with the workload and initial capital required for traditional cottages, modern UK lodges can feel like a more accessible route into holiday home investment.

Whether you’re selling a cottage or acquiring your first lodge, the staycation market in the UK still offers plenty of opportunities for investors with a long-term outlook.