The UK holiday rental property market is projected to grow faster than the domestic holiday market overall, with value increasing by an estimated 12% to reach £3.2bn by the end of 2025.
The UK Holiday Rental Property Market has shown strong growth, with the value forecasted to rise more than 10% in 2025, reaching over £3 billion.
Historically, the market has seen steady growth, driven by increasing consumer interest in rentals, especially post-pandemic. The volume of domestic holidays taken in holiday rentals by British residents has been on the rise, and the demand for these properties continues to exceed pre-pandemic levels. However, regulatory challenges, rising costs, and overtourism concerns could put some pressure on growth. The market is expected to experience continued value growth through 2025, with longer-term forecasts showing about 16% increase in the foreseeable future, crossing £3.5 billion. Despite these challenges, the Vacation Rental Market performance remains strong, with opportunities for innovation, especially in offering tailored services and add-ons that meet evolving consumer preferences.
Consumer trends in the UK Holiday Rental Property Market show a growing preference for flexibility, with younger generations, particularly Gen Z and Millennials, seeking personalised experiences and expert guidance when booking. Sustainability is becoming increasingly important, with many consumers favouring eco-friendly options. There is also a rising demand for loyalty programmes and add-on experiences like wellness and physical activities. While cost remains a barrier, the market sees an opportunity to cater to higher-income consumers through premium services, particularly in rental houses and apartments. Flexible booking policies and AI-driven recommendations are also gaining traction among consumers.
Purchasing the UK Holiday Rental Property Market Report helps understand younger consumers’ preference for personalised, flexible experiences with a focus on sustainability and loyalty programmes, while older generations lean towards traditional, cost-effective options. The report also highlights the growing interest in add-on activities and flexible booking across all demographics in the Holiday Letting Market.
The UK Holiday Rental Property Market Report 2025 provides valuable insights into the holiday rental property market in the UK, offering an in-depth analysis of market trends, consumer behaviour, and future forecasts. It covers areas such as market growth, consumer preferences, booking habits, barriers to usage, and the impact of sustainability and loyalty programmes. The research also explores emerging opportunities for add-on experiences, flexible booking policies, and premium services. Surveys were conducted across various demographics, including age, income, and travel preferences, providing a comprehensive view of the market. This report will benefit industry stakeholders, including property owners, travel companies, marketers, and investors, by equipping them with actionable data to optimise strategies and capitalise on Vacation Rental Market growth.
| Report Attributes | Details |
|---|---|
| Published Date | July 2025 |
| Data Range | 2019-2030 |
| Measurement Metrics | Revenue in £ |
| Country Focus | United Kingdom (UK) |
| Consumer Data | 2,000 internet users aged 16+, May 2025 |
| Number of Pages | 73 |
| Market Segmentation | Holiday Rental Properties, Rental Houses, Rental Apartments/Flats, and Rented Rooms in a Property |
| Leading Companies | Airbnb, Booking.com, Sykes Holiday Cottages, Wander, and Vrbo |
This report was written by Sinead O’Connor. Sinead writes reports and provides consumer insights on the travel sector. She joined Mintel in 2024 as a translator, before moving to her current role in February 2025. She holds a BA in Chinese Studies and an MA in International Relations.
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Sinead O’Connor
Travel Analyst
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