Holiday Letting Outlook Report 2023

Welcome to the Holiday Letting Outlook Report 2023. An analysis of holiday letting trends and opportunities, alongside a look at what lies ahead for the UK’s holiday let owners.

Our Holiday Letting Outlook report is back for a second year, providing an insightful and honest look into the current sector and beyond.

Despite the lifting of all travel restrictions that were put in place during the pandemic, the holiday-let market remains highly active with increasing numbers choosing to holiday in the UK.

We’ve analysed our own booking and income data to dig into how the market performed last year, and how things are shaping up for 2023 and beyond.

For more up-to-date stats and insights, see our 2024 Holiday Letting Outlook Report.

In the report, we cover:

The state of the UK staycation market

Despite the lifting of all travel restrictions that were put in place during the pandemic, the holiday-let market remains highly active with increasing numbers choosing to holiday in the UK.

We’ve analysed our own booking data and income data to dig into how the market performed last year and how things are shaping up for 2023 and beyond. Some of the highlights include:

• Bookings for our UK holiday lets were up 48% in 2022 versus 2019

• The average annual turnover of a UK holiday let was £24,000 in 2022, 59% up versus 2019

Hearing from current owners

As the driving forces behind the success of the market, we wanted to hear from the holiday let owners first-hand to see how they’re doing.

From who they are and what motivates them, to how the cost-of-living crisis has changed things, we surveyed 500 UK holiday let owners from across the market. Here are some facts and stats around holiday let owners in the UK:

• 93% of holiday let owners have a full or part-time job alongside running their holiday let

• 84% of owners say bookings are stronger than ever, and expect this to continue over the next 5 years

• 50% witnessed an increased demand for UK holidays since the pandemic

Building a profitable holiday let business

An analysis of our income data shows that the unwavering demand for Britain’s staycation market is clearly benefiting owners.

Since prior to the pandemic, revenue for property owners has increased by 59%, but our insights suggest location and extra features could boost income potential even higher.

The top five earning regions in 2022 were:

• Cumbria & the Lake District

• Cotswolds

• Peak District

• Cornwall

• Dorset

The three features that generate the most additional income were:

• Hot tubs

• Accepting pets

• WiFi

Average costs of running a holiday let

Amid the cost-of-living crisis, holiday homeowners may be looking for ways to reduce the costs of running a holiday let to ensure a profitable return.

Our analysis deduced that, on average, holiday let owners invest £7,400 per year in their holiday let (dependent on size, amenities and level of involvment).

Ways to make your holiday let more cost-effective

We offer our top three tips for cost-effective changes that won't comprimise on guest experience. These are:

• Remind guests to save energy

• Ensure your property is well-insulated

• Partner up with an agent

Download the full report for more in-depth stats, data, tips and information

Long-term investment opportunities

Our latest analysis reveals which of the nation’s holiday let rental markets provide the best investment opportunity in the longer-term.

To find our top 10, we analysed several factors of holiday lets in more than 50 holiday hotspots across the UK. That included the average annual income and revenue growth, the cost of investing in such properties and house price growth, as well as occupancy levels and the return of investment.

The 10 best income-driving locations in the UK in 2022 were:

• Cheshire

• Anglesey

• Lake District

• Lincolnshire

• Angus

• Peak District

• Dumfries and Galloway

• Norfolk

• North Yorkshire

• Pembrokeshire

Challenging perceptions of holiday letting

There is currently a gap in evidence of our industry’s positive economic impact. However, at the same time, concerns have emerged as to its potential effect on the housing market, prompting a recent Call to Evidence by the UK government.

To help fill this gap, last year we commissioned Oxford Economics to undertak an independent quantitative analysis to understand the sector’s true impact – from the spending of tourists to the job opportunities created.

Promoting sustainable travel

What changes can be made to let your property in a more sustainable way? We’ve made it our mission to ensure the sustainable growth of the sector.

This includes working closely with holiday let owners to ensure properties are let in a responsible way that benefits local communities. Some efforts that can be made include:

• Encouraging guests to spend local by recommending local restaurants and attractions

• Ask guests to recycle and reduce energy consumption

• Ask holidaymakers to be respectful of neighbours

• Have connections with local businesses to offer guests discounts or guaranteed bookings

• Open their property to bookings year-round to avoid it being empty