South West coast · England
South Devon holiday let: price, break-even and rules
South Devon (Salcombe, Dartmouth, Kingsbridge, the South Hams coast) is a premium sailing-and-beach market with some of the highest entry prices outside the Cotswolds. Gross revenue can be excellent; cash-on-cash return is the problem.
Ranked 25 of 27 in the UK Break-Even Index. Average purchase price £355,483 (South Hams, July 2026).
South Hams UK HPI, July 2026. down 5.3% over 12 months.
£250 at 45% occupancy · £184 at 65%.
25% deposit, SDLT (additional property rates), £18,000 furnishing and £2,500 legal/survey.
10.4% of the average purchase price, before you take a penny of profit.
These are area averages, not a valuation. A cottage in a honeypot village will sit well above the figure; a market-town terrace can sit below it. Replace the price with the actual asking price in the Deal Checker.
What the number means
If you cannot evidence £211 a night at 55% occupancy, the average South Devon purchase does not break even.
That rate is after 18% management and 3% platform fees, £115 cleaning every four-night stay, and the fixed costs in the stated cost model. It is not a recommended nightly rate. It is the floor at which the mortgage and the bills are covered, with no owner profit and no void reserve beyond the occupancy assumption.
A typical South Devon listing that actually books at £251–£291 in peak weeks can still fail the year if shoulder and winter nights sit well below this floor.
Price by property type
Same model, Land Registry type averages for South Hams.
| Type | Average price | Break-even ADR |
|---|---|---|
| Terraced | £282,608 | £188 |
| Semi-detached | £342,478 | £207 |
| Detached | £538,845 | £268 |
| Flat / maisonette | £186,207 | £159 |
Demand
Who actually books here.
High and affluent. Sailing weeks, family beach holidays and food-led short breaks. Guests expect finish and position, and pay for them, but the comparables that justify a high nightly rate are in a handful of postcodes.
Pronounced summer peak, strong May and September, quiet winter outside Dartmouth and Totnes. Group and multi-generation houses fill shoulder weeks better than two-beds.
Property types that fit: Estuary and harbour houses, large family homes with parking, and apartments with water views (check lease short-let clauses). Inland Totnes-area cottages trade at a different price and demand profile.
Local rules
Check these before you offer.
South Hams District Council charges a 100% second-home council tax premium. Salcombe and several parishes have principal-residence policies for new housing. The area is one of the most second-home dense in England, so policy risk is above average.
Go deeper
Existing South Devon research on this site.
Nearby areas
Compare the next market, not the postcard.
Next step
Test a real South Devon listing, not the average.
The figures above use the district average. Your deal is a specific house. Run it through the free Deal Checker, then buy the £39 report if you want the workbook kept.
FAQs
Common questions
How much does a holiday let cost in South Devon?
The UK HPI average for South Hams in July 2026 is £355,483. A typical mortgaged buyer in this model needs about £134,919 in cash (deposit, additional-dwelling purchase tax, furnishing and legal). Honeypot streets cost more than the average; market towns less.
What nightly rate does a South Devon holiday let need to break even?
£211 a night at 55% occupancy of 320 available nights, using 75% LTV at 5.75% interest-only, 18% management, 3% platform fees and the stated fixed costs. At 45% occupancy the floor is £250; at 65% it is £184.
Is South Devon a good place to buy a holiday let?
Only if a specific property can evidence a nightly rate at or above the break-even figure after fees, and the local rules allow holiday use. South Devon ranks 25 of 27 on the Break-Even Index. Read the demand and rules on this page, then run the actual listing through the Deal Checker.
What rules apply to holiday lets in South Devon?
South Hams District Council charges a 100% second-home council tax premium. Salcombe and several parishes have principal-residence policies for new housing. The area is one of the most second-home dense in England, so policy risk is above average.
House prices: HM Land Registry UK House Price Index for South Hams, July 2026, open data under the Open Government Licence v3.0. Contains HM Land Registry data © Crown copyright and database right 2026. Break-even figures are educational illustrations from one cost model, not a valuation, forecast or recommendation to buy. Confirm tax, planning and lending with qualified advisers.