UK Holiday Rental Property Market Analysis
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.
UK Holiday Rental Property Market Trends
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.
About The Report
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.
Key Topics Analyzed in the Report
- The growing trend in holiday rental property usage and future potential in rental houses and apartments/flats
- Consumer booking preferences for holiday rental properties, including interest in AI vs expert recommendations, and how to optimise the booking process to capture advance and last-minute bookings
- Rising barriers to holiday rental usage and opportunities to premiumise with targeted facility options
- Attitudes to holiday rental stays, including demand for loyalty schemes and the role of sustainability as a differentiator
- Opportunities to leverage differentiated interest in paid-for activities, especially among Gen X consumers
| 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 |
Meet the Expert Behind the Analysis
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.
To engage Germans, brands should prioritise educating about ingredients, promoting transparency and emphasising formulations that are gentle, yet effective.
Sinead O’Connor
Travel Analyst
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EXECUTIVE SUMMARY
- Opportunities for the holiday rental property market
- Boost booking confidence with support and flexible policies
- Combat overtourism concerns with a sustainability focus
- Personalisation is key: tailor add-ons and facilities to consumer demands
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- Market volume expected to return to growth
- Graph 1: volume of domestic holidays taken by British residents in holiday rental properties, 2019-30
- Mintel forecasts steady value growth over the next five years
- Graph 2: value of domestic holidays taken by British residents in holiday rental properties, 2019-30
- Regulatory challenges ahead for holiday rental properties
- What consumers want and why
- Holiday rental demand continues to grow
- Graph 3: usage of holiday rental property accommodation in the last three years (NET), 2022-25
- Female consumers show elevated demand for rental homes
- Specialist advice is important to younger demographics
- High costs and limited services deter holidaymakers from choosing rentals
- Graph 4: reasons for not being interested in staying in a holiday rental property, 2025
- Consumers are looking for flexible booking options
- Graph 5: attitudes towards holiday rental properties, 2025
- Opportunities to sell food and drink-related add-ons
- Graph 6: interest in paid-for activities booked through a holiday rental property provider, 2025
- Innovation and marketing
- Airbnb launches make a splash
- Oliver’s Travels offers unique villa stays
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MARKET DYNAMICS
- Market size
- Volume set for a modest rise
- Graph 7: volume of domestic holidays taken by British residents in holiday rental properties, 2019-25
- Mintel expects continued value growth in 2025
- Graph 8: value of domestic holidays taken by British residents in holiday rental properties, 2019-25
- Positive start to Q1 for holiday rental market
- Market forecast
- Forecast – note on US trade disruption
- Moderate volume growth forecast to 2030
- Graph 9: volume of domestic holidays taken by British residents in holiday rental properties, 2019-30
- Mintel expects sustained value growth over the next five years
- Graph 10: value of domestic holidays taken by British residents in holiday rental properties, 2019-30
- The holiday rental property market still holds strong growth potential
- Market drivers
- Consumer confidence gets a boost…
- Graph 11: the financial confidence index, 2017-25
- …and financial wellbeing is up
- Graph 12: the financial wellbeing index, 2016-25
- Holiday bookings catch up with 2024 figures
- Graph 13: holiday bookings in the last three months, 2023/24 and 2024/25
- Future holiday intent remains stable
- Graph 14: plans to book a holiday in the next three months, 2023/24 and 2024/25
- Clampdown on holiday rentals makes the headlines in Europe…
- …as regulations tighten at home
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WHAT CONSUMERS WANT AND WHY
- Holiday rental property usage
- Steady growth in rental stays
- Graph 15: types of holiday accommodation used in the last three years, 2025
- House and room rentals are up
- Graph 16: select types of holiday rental property accommodation used in the last three years, 2022-25
- Young people are the most likely to stay in both hotels and rentals
- Graph 17: select types of holiday rental property accommodation used in the last three years, by age, 2025
- Almost half of top earners have stayed in a holiday rental
- Future interest in holiday rental property
- 43% are interested in staying in a holiday rental property
- Graph 18: interest in types of holiday accommodation in the next three years, 2025
- Rentals offer more untapped potential than hotels
- Graph 19: types of holiday accommodation used versus future interest (net), 2025
- Leverage future demand for rental houses and flats
- Graph 20: select types of holiday accommodations used versus future interest, 2025
- Female consumers show elevated demand for rental homes
- Focus on the female market for rental homes
- Booking preferences
- Holidaymakers prefer booking in advance and longer trips
- Graph 21: preferences when booking holiday rental properties – length of trip, 2025
- Graph 22: preferences when booking holiday rental properties – professional help vs solo, 2025
- Profile of long-trip lovers
- Younger consumers value specialist advice
- Consumers looking for expert advice also want AI recommendations
- Graph 23: preferences when booking holiday rental properties – AI usage, 2025
- Customise the booking experience for different age brackets
- Early and marketplace bookings are favoured
- Graph 24: preferences when booking holiday rental properties – booking direct vs with provider site, 2025
- Graph 25: preferences when booking holiday rental properties – early vs late, 2025
- Consumers who book closer to the trip are more likely to go direct
- Graph 26: booking channel preferences, by booking timing preferences, 2025
- Barriers to staying in holiday rental properties
- Cost and a lack of services put holidaymakers off rentals
- Graph 27: reasons for not being interested in staying in a holiday rental property, 2023-25
- A lack of facilities ranks third as a barrier to usage
- Provide facility recommendations based on consumer profiles
- Address pain points for consumers with healthy finances
- Graph 28: reasons for not being interested in staying in a holiday rental property, by financial situation, 2025
- Address overtourism concerns
- Attitudes towards holiday rental properties
- Flexible booking is key
- Graph 29: attitudes towards holiday rental properties, 2025
- Over two in three holidaymakers want loyalty rewards
- Launch rental-specific reward schemes…
- …or partner with preferred brands
- Families value rental staycations
- Leverage sustainability as a differentiator
- Graph 30: attitudes towards holiday rental properties with sustainability credentials, 2025
- Interest in paid-for activities
- Opportunities remain strong in food and drink-related add-ons
- Graph 31: interest in paid-for activities booked through a holiday rental property provider, 2025
- Harness the growing demand for physical activities
- Convince Gen X to embrace add-on activities
- Graph 32: attitudes towards holiday rental properties – “I would be interested in booking local activities/experiences through a holiday rental property provider”, by Gen X consumers, 2024-25
- Attract Gen X with guided tours and excursions
- Affluent consumers overindex for interest in hands-on and wellness activities
- Premiumise with immersive experiences for affluent holidaymakers
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INNOVATION AND MARKETING TRENDS
- Launch activity and innovation
- Airbnb releases a wave of new features
- Sykes Cottages promotes flexible cancellation policy
- Vrbo launches tailored promotions
- Wander raises $50M in second round funding
- The Points Guy backs a new holiday rental loyalty program
- Advertising and marketing activity
- Oliver’s Travels promises unforgettable escapes
- Vrbo leans into TikTok trends
- Cottages.com encourages early bookings
- Booking.com offers holiday rental stays…and more
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APPENDIX
- Market forecast data and methodology
- Market size: domestic holiday rental property market
- Market forecast and prediction intervals (volume)
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Generations
- Consumer research methodology
- Snoop SpendMapper methodology
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