Short-term lets could see another boom as more opt for staycations


Holiday accommodation in the UK is set for another popular summer, and those considering investing in the short-term lets sector could reap rewards.

A new report has revealed that there could be another rise in the number of holidaymakers opting for short-term lets – generally self-contained, self-catering accommodation – in the UK.

The research, by Mintel, showed that almost half (47%) of families looking at holidays were interested in a cottage or villa for future trips, rather than a hotel.

This compares with just 25% who have experienced this type of holiday in the past three years. It indicates a potential future rise in ‘staycationers’ looking for holiday homes.

It seems discovering a new place was a key driver for many choosing to stay local in their holiday options. Around 89% of people said this was what appealed to them.

Covid, of course, sparked a major increase in the number of people staying on UK turf for their holidays. More than a fifth (22%) of respondents said the pandemic had led them to discover a new part of the country.

Short-term lets sales surge

A separate study, by Euromonitor, revealed that the sector has played a major role in the UK’s housing market recovery. It found that self-contained accommodation – including short-term rentals – was ahead of other sectors in the value of sales recovery last year.

Predictions for the year ahead are also hugely positive. The sector is forecast to hit 2019 levels in its sales values, reaching around £2.1bn in 2022.

Graham Donoghue, CEO of Sykes Holiday Cottages, commented: “A holiday doesn’t have to mean flying abroad or driving hundreds of miles. Our research shows that Brits are now much more open to exploring what lies closer to home.

“With beautiful countryside and award-winning beaches, the UK is a wonderful location for a staycation and it’s great to see that lots of people are planning to make the most of what the country has to offer.”

Why do people choose a staycation?

For anyone considering investing in short-term lets and holiday homes, knowing what drives demand could be key to success. Just as successful buy-to-let landlords often have a target tenant type in mind, and ensure their property caters to the tenant’s needs, the same is true for this sector.

In a survey by Sykes Holiday Cottages at the end of last year, more than half of respondents said “visiting lesser-known places makes them feel like they are getting the most out of the UK”. A similar figure (52%) cited exploring the local area as another reason to stay close to home.

A further 47% of people said local holidays enabled them to spend time with family and friends. A high number (40%) also said they would “go out of their way” to visit less popular areas.

Keeping your options open

Merilee Karr, chair of the STAA and CEO of UnderTheDoormat, points out that UK holidaymakers have a great sense of adventure, as they are happy to visit new areas as well as the tried and tested tourist hotspots like London and Bath. Some of these areas, she says, might have been undiscovered pre-Covid.

She adds: “More property owners are recognising the demand for places to stay that are in many cases  off the conventional tourist routes. By making their properties or rooms in their homes available for short term rental whilst they are away, it is now possible for visitors to stay in those locations.

“Short-term rentals offer flexible types of accommodation from apartments and houses of all shapes and sizes in cities to cottages and large farmhouses to cope with larger groups of families or friends for a ‘home-from-home’ experience in rural areas.”

BuyAssociation has a range of property investment opportunities suitable for short-term lets, including some incredible holiday let properties in CumbriaGet in touch to find out more. 

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

short-term lets staycation

Short-term lets could see another boom as more opt for staycations


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.