Holiday Let Heaven: Investing in Cornwall’s Coastal Developments

Cornwall, long cherished for its dramatic coastline, surf culture and postcard-perfect villages, has evolved into one of the UK’s most in-demand locations for holiday let investors. With a combination of rising staycation demand, limited housing supply, and strong short-let returns, investors are increasingly looking to coastal developments as a way to diversify their portfolios while capitalising on lifestyle trends.

A Market Fuelled by Demand

According to VisitBritain, domestic overnight trips to the South West reached over 64 million in 2023 alone, with Cornwall consistently ranking among the top destinations. Post-pandemic behavioural shifts, coupled with the rising cost of overseas travel, have further strengthened the region’s appeal. What was once seen as a seasonal holiday home market is now underpinned by near year-round demand from families, digital nomads, and retirees alike. The result? A highly attractive investment climate.

In 2024, AirDNA data reported average occupancy rates in Cornwall of 68% across the year, with peak summer months exceeding 85% for well-located properties near the coast. Gross yields for premium short-let apartments in towns like Newquay, St Ives, and Falmouth regularly sit between 8% and 12%, depending on management strategy and local competition.

Why Coastal Developments Are in Focus

Investors are increasingly seeking purpose-built or newly converted developments that blend lifestyle appeal with turnkey convenience. These properties often come with energy efficiency ratings that exceed older housing stock, plus the benefit of integrated property management or concierge services.

One such development attracting investor attention is Henver Apartments in Newquay. Located just minutes from Newquay’s iconic beaches and town centre, Henver offers a collection of high-spec 1, 2 and 3-bedroom apartments designed for both residential and holiday let use.

“Henver Apartments represents the kind of coastal investment opportunity that’s increasingly hard to find,” says Alan Evans, operations director at Doran Estates. “It combines modern energy standards, off-plan pricing, and a location that’s deeply embedded in Cornwall’s tourism economy. With limited comparable supply, the upside for early investors is strong.”

Strong Fundamentals Meet Lifestyle Trends

Investors are not only chasing yield. The “live where you holiday” movement has created new interest in dual-purpose properties, assets that can be rented out much of the year and also enjoyed by owners during off-peak periods. With growing appetite for flexible working and wellness-focused getaways, coastal locations like Cornwall check multiple boxes.

Cornwall Council’s Housing Delivery Plan notes that over 40% of residential property in some areas is either second homes or holiday lets. While that poses challenges for local communities, it also speaks to the enduring attractiveness of the market and the limited availability of new stock.

Furthermore, as sustainability becomes a key focus, developments like Henver, with modern building standards and improved EPC ratings, are increasingly sought-after by both investors and eco-conscious holidaymakers.

Considerations for Holiday Let Investors

Before jumping in, there are a few important factors to consider:

Regulation: Local authorities have begun discussing short-let licensing to protect housing availability. Investors should ensure any development is zoned appropriately for holiday use.
Management: Short lets require higher involvement than traditional buy-to-lets. Many developments, including Henver, offer or are compatible with professional short-let management, removing much of the operational hassle.
Seasonality: While demand is growing year-round, pricing and occupancy do still dip in winter months. Financial modelling should reflect this.
Finance: Holiday let mortgages typically require higher deposits (around 25–30%) and proof of projected rental income, though they can offer better rates than standard second-home loans.

Outlook for 2025 and Beyond

With limited land supply, high planning constraints, and continued domestic travel demand, Cornwall’s coastal property market looks set to remain buoyant. The region continues to attract infrastructure investment, and Newquay’s airport connectivity, along with road improvements, is making it more accessible than ever.

Investors entering the market now have the opportunity to ride a long-term trend that combines stable returns with lifestyle alignment, especially when entering through early-phase developments with strong fundamentals.

For those looking to enter the holiday let market without the operational burden of traditional second-home ownership, developments like Henver Apartments, offer a compelling, low-friction route into one of the UK’s most reliable leisure-driven property markets.