Holiday Let Occupancy Rates

If you are thinking of buying a holiday let, or you have recently purchased a property, understanding holiday let occupancy rates before you begin letting is essential.

Understanding holiday let occupancy rules will allow you to make the most of your investment and take as many bookings as possible each year.

What are Holiday Let Occupancy Rates?

Holiday let occupancy rate is the ratio between the number of days available to guests and the number of bookings actually received per year.

For example, if your holiday let was booked for 219 days out of 365, your holiday let occupancy rate for that year would be 60%.

As well as understanding what occupancy rates are, they are becoming increasingly important in the holiday letting industry. Recent rule changes in the UK have meant that occupancy rates need to be at a certain level in order to function as a business, therefore qualifying for business rates rather than council tax.

Depending on where you live in the UK, the qualifying criteria will be different, so be sure to consult your local authority for more information.

Read our furnished holiday let tax guide to find out more.

Average Holiday Let Occupancy Rates - What Can I Expect?

We have taken a look at the occupancy rates of holiday lets signed up with Sykes, to give you an idea of what sort of occupancy you can expect from your property.

Holiday Let Occupancy Rates by Region

We have delved deeper into various regions throughout the UK, as choosing where to buy your holiday let is one of the most important decisions you will make throughout your journey.

The average occupancy rates for holiday lets in the UK is currently at 32%.

Here are the average holiday let occupancy rates of some of the areas of the UK in 2022:

• Northumberland achieved an occupancy rate of 35%

• South Coast of England - 32%

• North Wales - 32%

• The Scottish Highlands and Islands - 40%

Note: It is important to note that when calculating holiday let occupancy, we take into account how much of an owner’s calendar is blocked out for personal use. If your holiday let is being frequently used by yourself, family or friends, then this is likely going to limit your holiday let's occupancy, and as a result, potentially your income.

Seasonal Changes in Occupancy Rates

Different seasons can cause occupancy rates to alter slightly. For example, if your property sits in a location near the beach or along the coast, you may experience dips in occupancy during the winter months - this is known as an off-peak season.

Keep in mind that data can change year-on-year, and should not be the only factor when you are looking at purchasing a property. It is common for average holiday let occupancy rates to drop in any region during the winter, so don't let this put you off your location of choice.

Below are some of the occupancy rates for holiday cottages throughout the seasonal periods in 2022:

• Southern Scotland had an average holiday let occupancy rate of 49% during the winter period.

• In the Scottish Highlands & Islands, the spring months achieved an occupancy rate of 61%

• The South Coast had around 47% occupancy rate in the spring.

• The summer months achieved a 50% occupancy rate in Northumberland.

Several other factors can affect the number of bookings taken on average for your holiday let. These can include:

• The size of the property

• Location of the property

• How the property is priced per booking

• How the property is marketed

How to Improve Your Holiday Let Occupancy

Make Your Property Stand Out

Making your property stand out from the rest is vital if you are looking to increase your holiday let occupancy rates. Adding features that other properties don't offer differentiates you from the crowd, and can attract more attention from the first time your property is viewed on an online listing.

According to current owners from guest feedback, the top three most highly regarded features of a holiday let are Wi-Fi, Hot Tubs and large outdoor spaces.

Other unique and popular features that can help you stand out from the rest include having an open fire and offering parking.

It is also important to keep furnishings up to date, following trends that your target audience may like and not letting features become dated.

Offer Wi-Fi

This is almost a must for each property these days, with most guests having devices that require the internet.

Properties with Wi-Fi earn 55% more income compared to properties that do not, according to the 2024 Sykes Holiday Letting Outlook Report.

It is also important to make sure that the Wi-Fi you are providing is high-quality. Having a poor connection is arguably worse than having none at all!

Provide a Welcome Hamper

With first impressions being so important when guests arrive at your property, having items in place to make guests feel welcome can boost your chances.

Offering a hamper with items from the local area is a nice touch. This will make a positive impression on the guests, which could then result in positive feedback and repeat bookings.

If your property accepts pets or children, consider adding items that cater for them in the hamper. E.g., chocolate/sweets for the children and some treats for the dog.

Guest Information Pack & Guestbook

A property folder, or guest information pack, should include all the information needed for the property, and is an essential addition. This folder should give the guests anything they require during their stay, from how the TV works to waste collection, as well as any local attractions and places to eat nearby.

Alternatively to a physical folder, you could send your guests an online version with vital information prior to their arrival.

For an idea of what to include, read our guide on what to put on a guest information pack.

Having a guestbook at the property to allow people to leave reviews is also a nice touch. As online reviews are so important these days, also ask if guests would be happy for feedback to be added online.

Parking

Having a car parking space at the property, or a pass for a local car park, is a nice touch and something that guests really appreciate.

Parking can be hard to come by, especially in popular tourist destinations, and the last thing that guests want to do after a long drive is to have to carry their bags a long way to the property.

If considering a parking pass, each council will have a different option on how their parking systems work. It may be a parking pass that is provided, or a number plate system. This can be mentioned to guests in the email sent before they are due to visit to give them notice ahead of time.

Accepting Pets

By accepting pets in your holiday let, you are opening yourself up to an enormous market. According to the 2024 Sykes Holiday Letting Outlook Report, pet-friendly properties earn 15% more income, so this may be something to consider when setting up your property.

However, this is an option that some people can be undecided on, as offering pet-free accommodation is important for some guests. This may be due to allergies, or that they would just prefer properties not associated with pets.

There is plenty to consider before accepting pets at your holiday let, however. For example, does your property have a fully enclosed garden for them to roam? Are there any walks in the nearby area suitable for dogs? Are you prepared for the extra cleaning during changeovers? Read our guide to making your holiday let pet-friendly for tips and guidance.

Having Eye-Catching Photos and Description

Having photos that stand out can help to attract potential guests to click on your property listing.

Are there any great views that would show off the appeal for potential guests to book the property? Or, if you have key features at the property, having photos of them could also attract guests to book. If you have a hot tub, make sure it is shown in the first couple of images to show it off to potential guests.

An in-depth description and summary of the property are also needed. This is to make sure it is highlighted in the best way. If you choose to holiday let with an agency, many will take care of this as part of the service.

Make sure you are seen online

Try to give your property the best exposure possible to maximise your booking potential. You don’t want to miss out on potential bookings due to not being seen online.

Here at Sykes, our marketing strategy allows us to reach far and wide to attract customers to your property. Our market-leading systems price your property in line with seasonality and demand. We have professional photos taken of your property, with a detailed description to best sell your holiday experience. Our Managed Service team also offers connections to a wide variety of cleaning companies, to help with your holiday let management. Discover more about how holiday letting with Sykes can benefit you.

Summary

In summary, choosing the right location is critical to maximising your holiday let occupancy. Although a beachside location could prove its worth in the summer months, a more year-round location could prove to be more profitable.

Also by making the property more appealing, whether that is from some of the features highlighted or from other potential changes, this will help in trying to maximise booking levels throughout the year.

Guests won’t book unless the property is right, the location is right, and the price is right.

Note: It is important to note that when calculating holiday let occupancy, we take into account how much of an owner’s calendar is blocked out for personal use. If your holiday let is being frequently used by yourself, family or friends, then this is likely going to limit your holiday let's occupancy, and as a result, potentially your income.

Disclaimer: The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time, so please contact our prospective new owner team if you’d like to hear how. Nothing in this article constitutes the giving of financial, tax or legal advice to you; please consult your own professional advisor (accountant, lawyer etc).