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Is buying a holiday let in Falmouth still worth it in 2026?

With the Bank of England base rate dropping to 4.25% and inflation easing to 2.6%, confidence is returning to the UK property market. As a result, many buyers are asking whether now is the right time to invest in a second home or holiday let.


Holiday let investment property in Falmouth Cornwall
Holiday let investment property in Falmouth Cornwall

While some Cornish locations remain highly seasonal, Falmouth continues to outperform all other areas in Cornwall for holiday lets. Thanks to strong year-round demand, a thriving local economy, and international appeal, Falmouth offers one of the most resilient short-term rental markets in the South West.


For buyers considering professional Airbnb management in Falmouth, this makes the town particularly attractive.



Why Falmouth outperforms other holiday let locations in Cornwall


Unlike traditional seaside resorts that rely heavily on summer trade, Falmouth benefits from multiple demand drivers all year round.




Year-round demand, not just summer bookings


Falmouth’s holiday-let performance is supported by:


  • Falmouth University, attracting students, lecturers, visiting academics, and international families

  • A global marine and maritime industry, bringing skilled workers from around the world

  • Parents and friends visiting students throughout the year

  • Excellent transport links, including a direct train station into town

  • Some of Cornwall’s best beaches, all close to the town centre

  • Award-winning restaurants, cafés, and food culture

  • Festivals, sailing events, arts, and cultural experiences year-round


This diversity creates consistent occupancy, even during traditionally quieter months, something few other Cornish towns can match.



What the mortgage base rate drop means for holiday let buyers


The recent 0.25% base rate cut to 4.25%, combined with inflation falling more than expected, is particularly relevant for second-home and holiday-let buyers.


Lower rates can lead to:

  • Reduced mortgage repayments

  • Improved borrowing affordability

  • Increased buyer confidence

  • Stronger long-term investment viability


For buyers planning to offset costs through short-term letting, this improves overall yield potential, especially when paired with professional holiday let management in Falmouth.



Are holiday lets still profitable in Falmouth?


Yes, when managed correctly.


Falmouth continues to outperform much of Cornwall due to:


  • Higher off-season occupancy

  • Shorter void periods

  • A broader mix of guests (tourists, professionals, families, academics)

  • Strong average nightly rates across the year


However, profitability today depends on more than just location. Successful owners focus on pricing strategy, presentation, guest experience, and professional Airbnb management.



Self-managing vs professional Airbnb management in Falmouth



Many new owners ask whether they should self-manage or use a professional holiday let management company.


Self-managing often involves:

  • 24/7 guest communication

  • Constant price adjustments

  • Managing cleaners, linen, and maintenance

  • Handling reviews, issues, and emergencies

  • Keeping up with platform and regulatory changes


Professional Airbnb management in Falmouth allows owners to:

  • Maximise income using dynamic pricing

  • Increase occupancy throughout the year

  • Deliver a consistent, high-quality guest experience

  • Protect their time and investment


For many owners, this difference directly impacts returns.



Holiday let management in Falmouth and Flushing with Guested


At Guested, we specialise in Airbnb and holiday let management in Falmouth and Flushing. Our approach is local, hands-on, and performance-driven.


We don’t just manage bookings — we optimise your property for long-term success.



  • Full guest communication and hosting

  • Dynamic pricing using Pricelabs

  • Professionally optimised listings

  • Linen hire, cleaning, and maintenance coordination

  • Local insight to drive year-round bookings

  • Personal service tailored to each owner


Because we’re based locally, we understand exactly what drives demand in Falmouth and Flushing.



Is now a good time to buy a holiday let in Falmouth?


With easing mortgage rates, stabilising inflation, and strong year-round demand, Falmouth remains one of the most reliable holiday-let investment locations in Cornwall.


For buyers looking for:

  • Less seasonality

  • Consistent occupancy

  • International demand

  • Strong long-term income potential


Falmouth stands out as a smart, resilient choice.



Thinking of buying or already own a holiday let?


If you’re considering buying a holiday let or already own a property in Falmouth or Flushing, Guested can help you understand the numbers and maximise your return.



 
 
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