In the past five years, we’ve seen a real shift in what we’re looking for in a holiday. While demand for trips abroad remains high, so too does the cost of living and changing lifestyles meaning more people are looking closer to home for some much-needed downtime.
The UK holiday let market has moved beyond a short-term boom and is now settling into something more consistent and more interesting.
A market that’s growing and evolving
City breaks, coastal destinations and rural getaways continue to prove popular. This is something our own data supports. From the initial boom of the holiday let market at the tail end of 2020 into 2021, where scenic hotspots were the go-to, to the past two years where city locations are on the rise.
Cornwall tops the list for the top 10 UK staycations, with London, Edinburgh and the Scottish Highlands all featuring on the list, showing there really is demand UK-wide. Hodge’s data aligns with the UK top 10, with the Scottish Highlands topping the list and both north and south Wales featuring in the top five.
At the same time, bookings continue to grow year-on-year, with 2025 seeing a 3% increase according to Skye Holiday Cottages data, and early 2026 is already showing further momentum.
But what’s really changed isn’t just where people are going, it’s how they’re choosing to stay.
Do bigger properties equal broader appeal?
Conversations with brokers increasingly point to one clear trend: holiday lets are getting bigger. Where we’ve previously seen family holidays built around the stereotypical 2.4 children dynamic, we’re now seeing a rise in intergenerational holidaying and larger group stays.
That shift is reflected in the types of properties in demand:
- Detached houses
- Unique homes
- Farm stays.
It’s no longer just a two-bed by the seaside. It’s bigger homes with more bedrooms, more living space and often more to offer, from games rooms to outdoor entertaining areas or even pools.
For many, booking one large property for a group can be more cost-effective than splitting across multiple hotel rooms.
It’s how I now holiday in the UK – if I’m away with my three girls and my in-laws, or my own parents, my sister and partner will usually come along too. It means instead of paying for two or three rooms at a hotel chain, I’ll book an Airbnb which we can all stay in. Quite often, with the cost of hotel rooms forever increasing, the option of a rental for all of us can be far more competitively priced – and usually, more comfortable.
It’s not just about summer anymore
One of the biggest misconceptions about holiday lets is that they’re driven purely by peak summer demand. In reality, income is now far more evenly spread across the year.
Recent Skye Cottages data shows that:
- Spring can outperform summer in average earnings
- Winter bookings remain strong
- Autumn continues to deliver steady returns.
Shorter, more frequent breaks of two to three days are also becoming more common, creating more opportunities for bookings throughout the year. Basically, there’s no longer an “off-season” when it comes to UK staycations.
What this means for landlords and brokers
Ultimately, the outlook is good for holiday lets, the continued support through business rates relief could make a huge difference to landlords and significantly reduce operating costs. Along with the stabilisation and reduction of energy bills.
Holiday let landlords are increasingly looking to invest in larger, higher-quality properties which cater to groups rather than individuals. This can maximise occupancy across the full year, not just peak months.
There has been a lot of speculation around the impact increased regulation will have on Holiday Let landlords, the new regulations might not be for everyone, but I think those who manage their properties professionally and ensure they are well managed will only see the benefits of a more regulated industry.
I predict this increased regulation may create greater demand on the market meaning more expectation to deliver the highest quality accommodation coupled with service worthy of a five-star Trip Advisor review. I’d also anticipate more reliance on dynamic pricing when it comes to bookings, something landlords may see as a positive step towards greater profit margins.
All in all, the future looks bright for the UK holiday let market. The one thing I’ll always say to brokers who are unsure about a case or have a client with a unique set of needs, is to have a conversation. Whether that’s with us at Hodge or another lender, keeping the lines of communication open is so important as we enter a new era of complex income streams and non-linear life journeys.
Anyway, I’m off to book a family trip to the seaside. Chippy tea on me!
Supporting a changing market
As demand shifts towards larger, more flexible holiday lets, lending needs to keep pace.
That’s why we’ve recently enhanced our holiday let criteria to better reflect how the market is evolving, including:
- Up to £2 million loan size
- Up to 80% LTV
- No bedroom limit.
Alongside this, we continue to support a range of clients with flexible options, including first-time landlords, Airbnb properties and up to three holiday lets per borrower.
These changes are designed to help brokers support clients investing in the types of properties that are increasingly in demand for larger homes, unique stays and properties built for group experiences.
Why Hodge
This case highlights how Hodge can support borrowers who fall outside typical underwriting boxes, providing flexible solutions and practical decision-making to help clients progress. Our Hodge Resi mortgage delivers tailored solutions for complex incomes and high-value purchases.
