York has been among the most visited cities in the United Kingdom as tourism has surged significantly over recent years.
York attracted around 9 million tourists in 2023, up 2.2% from year before. With direct spending of £1.2 billion, these guests helped the local economy to flourish. The travel industry helped the city to support about 16,017 full-time equivalent jobs.
This flood of visitors has increased demand for temporary lodging, hence holiday lets are a profitable investment option.
Vacation rentals in York rose between 2018 and 2022 due to its tourism sector. Its history, historic structures, and colourful appeal draw tourists from throughout the world. This raises holiday accommodation demand.
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York’s rich history and vibrant culture make it a treasure trove of attractions that draw visitors year-round. Here are some of the city’s most famous landmarks
York Minster, one of Northern Europe’s largest Gothic cathedrals, dominates the city’s skyline. The exquisite stained glass windows and grand architecture draw tourists from throughout the world. The cathedral’s central tower’s 275 steps reward climbers with vistas of York.
A stroll down The Shambles feels like stepping back in time. This narrow, medieval street is lined with overhanging timber-framed buildings, some dating back to the 14th century. Tourists love its lovely boutiques, confectionery stores, and cafés, which were once butcher shops. Its likeness to Diagon Alley has won over Harry Potter aficionados.
For an immersive dive into York’s Viking heritage, the JORVIK Viking Centre is unparalleled. Built on the site of significant archaeological discoveries, the centre offers interactive exhibits and reconstructed Viking-age streets, allowing visitors to experience life as it was over a millennium ago.
Encircling the historic core, the York City Walls are the most complete example of medieval city walls still standing in England. Stretching approximately 2.5 miles, a walk along these ancient fortifications provides picturesque views of the city and insights into its layered history.
The National Railway Museum houses over 100 locomotives and approximately 300 other rolling equipment, attracting train enthusiasts and families. Famous Flying Scotsman and elegant Japanese Shinkansen.
Interactive exhibits and events make the museum fun for all ages. Note that the museum will undergo a £15 million renovation to improve its offerings.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
Investing in York’s holiday let market gives you a lot of options for different types of properties, each of which is good for a different type of traveler, business, and property investment strategy. We’ll look at each type in more detail below, including the usual price and rental yield for each
Average city centre apartment price
Couples and single visitors often value city centre flats because of their close access to York’s main attractions, restaurants, and active nightlife. Usually requiring less initial costs than bigger houses, these features appeal to a wider spectrum of investors.
With an average rental return of 4.2%, York’s city centre boasts an average property price of about £400,024. The ongoing demand for centrally placed hotels guarantees dependable returns and constant occupancy rates.
Average townhouse price (Clifton)
Townhouses offer spacious accommodations suitable for families and larger groups, often featuring multiple bedrooms, living areas, and sometimes private gardens. These properties are commonly found in residential neighborhoods like Clifton, which is within walking distance of the city centre.
The average property price in Clifton is around £383,320, offering a rental yield of 4.91%. Investors can attract guests seeking a home-like environment during their stay, appealing to those who prefer more space and privacy than typical hotel accommodations provide.
Global short-term rental growth (2023-2024)
Luxury properties cater to high-end travelers seeking premium amenities and exclusivity. These homes often boast features such as bespoke interiors, state-of-the-art appliances, and expansive outdoor spaces.
While specific data on luxury homes is limited, they typically command higher prices and can offer substantial returns due to premium rental rates. Investors targeting this segment can capitalise on York’s appeal to affluent visitors, especially during major events and festivals that draw international attention.
Average cottage price (Heworth)
Cottages provide a quaint experience in more rural settings around York, appealing to those seeking a peaceful retreat while still being within reach of the city’s attractions. These properties offer a homely feel and are popular among visitors looking for a countryside escape.
In areas like Heworth, the average property price is about £341,607, with a rental yield of 5.85%. Investing in cottages can attract guests seeking a tranquil stay, offering a unique experience compared to urban accommodations.
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Investing in holiday lets in York presents lucrative opportunities, particularly when focusing on areas with high demand and attractive rental yields. Here’s an overview of key neighborhoods to consider:
The heart of York, encircled by the historic city walls, offers a vibrant atmosphere with immediate access to major attractions, dining options, and cultural sites. Properties here are highly sought after by tourists seeking convenience and an immersive experience. The average property price in the YO1 postcode is approximately £339,277, with rental yields around 4.8%.
Located north of the city centre, Bootham and Clifton are desirable residential areas within walking distance of central York. These neighborhoods offer a blend of historic charm and modern amenities, attracting families and professionals alike. Average property prices range from £210,000 to £320,000, with rental yields between 4.4% and 5.3%.
Known locally as “Bishy Road,” this area boasts a strong community appeal with its array of independent shops, cafés, and a lively market scene. Its proximity to the city centre and the scenic River Ouse makes it popular among both residents and visitors. Properties here are part of the southern suburbs, with average prices between £300,000 and £350,000, and rental yields averaging 4.1%.
Situated to the east of the city centre, Heworth is a family-friendly neighborhood offering larger properties and a quieter environment. Its suburban feel, coupled with easy access to central York, makes it appealing to those seeking a balance between tranquility and convenience. Average property prices are around £320,184, with rental yields approximately 4.6%.
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To excel in York’s competitive holiday let market, offering a range of desirable amenities is essential to enhance guest satisfaction and encourage repeat bookings. Key features to consider includes as below.
A well-appointed kitchen allows guests the flexibility to prepare their own meals, catering to families and those with dietary preferences. Essential appliances like ovens, microwaves, and dishwashers, along with quality cookware, can make a significant difference. Many self-catering accommodations in York, such as those listed on Booking.com, emphasise fully equipped kitchens as a key feature.
In today's digital age, reliable and high-speed internet is a must-have for guests, whether they're streaming entertainment or handling work remotely. Integrating smart technology, such as smart TVs and voice-activated assistants, can further elevate the guest experience.
Providing on-site or secure parking is a valuable amenity, especially in urban settings where parking can be limited. This convenience is often highlighted in York's holiday rentals, with platforms like Vrbo noting parking as a popular feature among guests. Private outdoor areas offer guests a place to relax and enjoy leisure activities. Properties with gardens, patios, or balconies are particularly appealing, providing additional space for dining or unwinding.
Incorporating elements that showcase York's rich history and culture can make a property stand out. Features like exposed beams, traditional furnishings, or locally inspired decor provide guests with an authentic and memorable stay.
City Gate is a modern development comprising 62 stylish apartments, strategically located just minutes from York’s historic city centre. The project offers a mix of 1, 2, and 3-bedroom units, catering to a diverse range of tenants.
Prices for these apartments start from £273,273, making them accessible to a wide array of investors.
York welcomes 8.4 million visitors annually, with 20% using short-term rentals, highlighting strong demand. City Gate’s location and amenities make it ideal for rental income and capital growth.
York’s tourism industry fuels high short-term rental occupancy and consistent returns.
City Gate offers contemporary amenities while embracing York’s historic charm.
Prime location ensures sustained value appreciation for investors.
City Gate
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Property Price
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Rental Yield
The short-term rental market has experienced significant growth globally, with a 9% increase in listings and guest capacity from December 2023 to December 2024. In York, this trend is particularly pronounced due to the city’s popularity as a tourist destination.
Here are some key trends and outlooks for the future
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By understanding these trends and adapting to changes in the market, investors can capitalise on the opportunities presented by York’s vibrant holiday rental sector.
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Successful holiday let investment in York requires strategic planning and efficient management. Key strategies include the following.
A well-managed and well-marketed holiday let can deliver strong returns and long-term investment success in York.
Investing in 2-bedrooms holiday homes near York station offers strong rental yields and high occupancy rates. With York’s thriving tourism, well-located properties attract steady demand, ensuring profitable short-term lets and long-term capital growth.
Take advantage of York’s growing tourism and invest in high-yield holiday lets. We at Flambard Williams offer expert guidance and exclusive property opportunities to help you maximise your returns.
Whether you’re experienced or just starting out, our team supports you with property selection, management, and local regulations. We make the process simple, helping you unlock the full potential of your investment.
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Yes, York is one of the most visited cities in the UK, attracting millions of tourists annually. The strong year-round demand for short-term accommodation makes holiday lets a profitable investment option. Additionally, the city’s rich cultural heritage and numerous festivals further boost visitor numbers.
The best areas for holiday lets include the City Centre, Bootham & Clifton, Bishopthorpe Road, and Heworth. These locations offer high rental yields, strong demand, and proximity to key attractions. Furthermore, their excellent transport links enhance their appeal to tourists.
Furnished Holiday Lets (FHLs) qualify for tax advantages such as Capital Gains Tax relief and certain VAT exemptions. Consulting a tax professional can help maximise financial benefits. Moreover, FHLs may also be eligible for Business Rates relief, depending on the property’s rateable value.
Some properties may require planning permission, especially if converting a residential property into a short-term rental. It’s essential to check local regulations to ensure compliance. Additionally, obtaining a change of use classification may be necessary in certain cases.
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