What’s different for the holiday let market in 2026?

The UK holiday let market experienced a welcome boom over the last five years, one that has now settled into a more stable, still growing position.  

Seaside breaks to small coastal towns are no longer the only driver behind UK staycations. Today’s travellers are casting the net wider, drawn to exploring the wealth of Outstanding Natural Beauty across Britian, alongside its history, cities and culture, all amplified by travel influencers and social media. 

At the same time, the appeal of avoiding airports and far flung destinations, brings flexibility for group trips and premium experiences further up the wish lists. 

So how do we see this translating into real change for the holiday let market in 2026?  

Staycations aren’t just about summer  

According to ABTA’s 2025-2026 Holiday Habits report, both UK holidays and overseas holidays grew six percentage points in 2025. On average, UK travellers are now taking 2.2 domestic trips per year compared to 1.7 trips abroad.  

Shorter, more frequent breaks of two to three days, are becoming the norm. This shift is creating more consistent booking patterns for landlords across the year, meaning there is no clearly defined “off-season” anymore.  

While summer remains the peak for overseas travel, UK stays are far more evenly spread throughout the year. Data from Sykes Cottages Holiday Lettings outlook highlights just how balanced returns have become:  

• Spring and summer deliver near-identical average earnings (£7,070 vs £7,060) 
• Winter remains strong, with average earnings of £6,110 
• Autumn continues to deliver steady returns of £5,330 

It’s not just where we stay, but how we stay  

Location still matters. City breaks, coastal destinations and rural getaways continue to prove popular, with areas like Cornwall, London and the Scottish Highlands and both North and South Wales continuing to perform strongly. 

However, what’s really shifting is the types of accommodation in demand.   

Larger properties, unique stays and homes designed for larger group experiences are becoming increasingly popular. Conversations with brokers reflect a clear trend: holidays are getting bigger. 

While traditional family holidays may have once been centred around smaller seaside cottages, there is now a notable rise in intergenerational travel and group stays. Luxury properties with multiple bedrooms, amenities like hot tubs, pools and games rooms are becoming a key differentiator.  

For many travellers, booking one larger property can also offer better value as well as a more sociable experience than separate hotel rooms.  

What this means for landlords and brokers  

As the market matures, landlords looking to grow their portfolio will find there is healthy demand, but expectations are also evolving.  

There is likely to be a continued focus on costs, business rates relief and energy bills in particular. We’ll also likely see increasing regulation to bring greater consistency and booking confidence to the sector, encouraging higher standard on quality and service. We may see dynamic pricing for bookings, something landlords may see as a positive step towards greater profit margins.   

For brokers and landlords alike, this points to a market no longer purely seasonal, but one that rewards well-positioned, high-quality accommodation capable of attracting guests’ year-round. 

Supporting a changing market  

As the market evolves so too must be the way its supported. The demand towards larger, more flexible holiday lets, lending needs to keep pace. In response, lenders across the market are adapting their criteria to better align with these trends offering greater flexibility such as loan size, LTV and property type.   

At Hodge we’ve adapted our approach to reflect this shift, offering up to £2 million loan size, up to 80% LTV and no bedroom limit on our Holiday Let range. Helping brokers create opportunities to support a broader range of clients, from first time landlords to those expanding their portfolios, helping them access properties that reflect how people are choosing to holiday today. 

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