2021
9
UK Holiday Rental Property Market Report 2021
2021-07-20T04:03:00+01:00
OX1046065
2995
140432
[{"name":"Hotels and Accommodation","url":"https:\/\/store.mintel.com\/industries\/holidays-travel\/hotels-accommodation"}]
Report
en_GB
“UK holiday rentals were hit hard in 2020, like all forms of tourism, but when restrictions have allowed, they have proved more resilient than other travel sectors. Holidaymakers have sought…

UK Holiday Rental Property Market Report 2021

$ 2,995 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Holiday Rental Property market, including the behaviours, preferences and habits of the consumer.

22% of adults have stayed, or expect to stay, in holiday rental property during 2021, compared with 10% in 2020. This points to a strong surge in demand for domestic rentals as UK tourism continues to open up and uncertainties persist over travel abroad. Holiday rental property, as well as rental cars, has the highest level of future growth potential of any holiday accommodation type. Some 47% of adults would be interested in staying in future, compared with 26% who have stayed in the past three years.

Like all travel, holiday rentals were heavily impacted by COVID-19 in 2020, but the staycation surge of 2021 will leave a positive legacy for the market, raising demand to a higher level than seen prior to the pandemic. Overseas rentals will be slower to recover, but in the long term should benefit from rising consumer interest in alternatives to hotel/resort accommodation.

The short-term rentals market is under growing scrutiny over its social impact in local communities, for example its effects on local housing stock and over-crowding in popular locations. Failure to manage these impacts sustainably may result in local and national regulation and will tarnish the image of rental brands.

Opportunities include: property in remote, off-the-beaten-track locations for those seeking escape from the city; premium/luxury rentals; and larger properties as the end of COVID restrictions unlocks consumer demand for extended family gatherings and getaways for groups of friends.

Read on to discover more details or take a look at all of our UK Holiday market research.

Quickly understand

  • The impact of COVID-19 on the holiday rental property market.
  • Long-term potential in the holiday rental property market.
  • Key players, distribution trends and new launches in the holiday rental property market.
  • Important factors consumers look for when booking holiday rental property.
  • Other consumer preferences and opportunities for holiday rental property.
  • Holiday rental market UK.
  • Holiday rental trends.

Covered in this report

Brands: Airbnb, Booking.com, Expedia, OYO Hotels, Cottages.com, Sykes Holiday Cottages, Awaze, Google, GreenGo, Domus Stay, Villas by Relais & Châteaux, TripAdvisor.

Expert analysis from a specialist in the field

Written by John Worthington, a leading analyst in the Holidays sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

UK holiday rentals were hit hard in 2020, like all forms of tourism, but when restrictions have allowed, they have proved more resilient than other travel sectors. Holidaymakers have sought out self-catering bubbles away from the crowds, on the coast or in the country. The home has become a place of refuge for people during the pandemic, and this translates naturally into a preference for holiday cottages and other properties.
The staycation year of 2021 will have long-term benefits for domestic rentals as consumers discover parts of the UK, or try out this type of holiday for the first time. City break rentals will return more slowly, but there is a window of opportunity for London breaks before overseas visitors return in large numbers. Rentals abroad will only fully recover when international travel restrictions are removed, but long-term prospects are strong for both the UK and overseas markets as consumers seek alternatives to hotel/resort accommodation, and travel brands see growing opportunities in this sector.

John Worthington
Senior Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Covered in this Report
          • COVID-19: Market context
            • Economic and other assumptions
            • Executive Summary

                • Impact of COVID-19 on holiday rental property
                  • Figure 1: Impact of COVID-19 on the holiday rental property market, in short, medium and long term, 1 July 2021
                • The market
                  • After a 40% drop in 2020, 2021 is expected to see record levels of holiday rentals
                    • Domestic market forecast to continue above pre-pandemic levels throughout 2022-26
                      • Figure 2: Domestic holiday rental property volume COVID-19 scenario forecasts, 2016-26
                      • Figure 3: Domestic holiday rental property value* COVID-19 scenario forecasts, 2016-2026
                    • Overseas rentals will take longer to recover
                      • Companies and brands
                        • Airbnb sees flight to the countryside
                          • OYO Hotels is the latest global group to enter the rentals market
                            • Awaze and Sykes both report double-digit growth in UK holiday cottage bookings
                              • The consumer
                                • Over one in five consumers expect to stay in holiday rental property in 2021 …
                                  • … and future growth potential is strong
                                    • Figure 4: Types of holiday accommodation used in the last 3 years, 2021
                                  • OTAs are extending their reach in the rentals market
                                    • Figure 5: Booking channels used for last holiday rental property stay, 2021
                                  • Pandemic pooches trigger a rise in pet-friendly properties
                                    • Figure 6: Important factors when booking a holiday rental property, 2021
                                  • Pools and hot tubs add significant value to properties at home and abroad
                                    • Quirky properties and premium stays have strong prospects
                                      • Pent-up demand for family celebrations
                                        • Figure 7: Preferential factors when booking a holiday rental property, 2021
                                    • Issues and Insights

                                      • Selling the #Cottagecore lifestyle
                                        • Garden designs
                                          • WFH, WFA and holiday rentals
                                            • Senior moments
                                              • Try before you bike
                                              • The Market – Key Takeaways

                                                • UK holiday rentals down 40% in 2020 but bounced back in summer
                                                  • Country and coastal cottages fared better than city rentals
                                                    • Record levels expected in staycation year 2021
                                                      • Domestic market expected to remain above pre-pandemic levels from 2022-26
                                                        • Overseas rentals recovery expected to be slower
                                                        • Market Size and Performance

                                                          • Impact of COVID-19 on holiday rental property
                                                            • Figure 8: Impact of COVID-19 on the holiday rental property market, in short, medium and long term, 1 July 2021
                                                          • A strong summer helped to sweeten the overall slump in 2020
                                                            • Figure 9: volume and value of the market for domestic holiday rental property, 2016-20
                                                          • City break apartment rentals fared the worst
                                                            • Figure 10: Volume of domestic holiday rental property, by property segment, 2015-19
                                                          • Overseas holiday rentals fell by around 75%
                                                          • Market Forecast

                                                            • Domestic property rentals expected to reach record volume and spend in staycation year 2021 …
                                                              • … remaining above pre-COVID levels from 2022-26
                                                                • Figure 11: Volume forecast for the domestic holiday rental property market (prepared on 23 June 2021), 2016-26
                                                                • Figure 12: Value* forecast for the domestic holiday rental property market (prepared on 23 June 2021), 2016-26
                                                            • COVID-19 Scenario Performance

                                                              • Mintel’s approach to predicting the impact of COVID-19
                                                                • Fundamental differences in how COVID-19 is affecting consumer markets
                                                                  • The risk of vaccine-resistant strains of COVID-19 adds huge uncertainty
                                                                    • Likely impact of the rapid recovery/extended disruption scenarios on holiday rentals in 2021
                                                                      • A setback to COVID-19 recovery could curtail the expected long-term growth trend
                                                                        • A rapid COVID-19 recovery would drive further spending on UK stays, but bring more competition from overseas trips
                                                                          • Figure 13: Domestic holiday rental property volume COVID-19 scenario forecasts, 2016-2026
                                                                          • Figure 14: Domestic holiday rental property value* COVID-19 scenario forecasts, 2016-2026
                                                                        • Overseas rentals are expected to recover more slowly …
                                                                          • … but a faster opening up of international travel could see full recovery by 2022-23
                                                                            • COVID-19 market disruption: risks and outcomes
                                                                              • Figure 15: Summary of Mintel scenario expectations and the impact on the holiday rental property market, June 2021
                                                                          • Market Drivers

                                                                            • #Cottagecore trend can benefit rural property rentals
                                                                              • WFH, WFA and holiday rentals
                                                                                • The social impact of holiday rentals is under growing scrutiny
                                                                                  • A new wave of second home purchases may increase market supply for holiday rentals …
                                                                                    • … but will also raise pressure on brands to act responsibly
                                                                                    • Companies and Brands – Key Takeaways

                                                                                      • Global intermediaries continue to drive sales
                                                                                        • Airbnb has seen a big shift to countryside rentals
                                                                                          • OYO Hotels is the latest group to expand into the rentals market
                                                                                            • Awaze and Sykes are seeing double-digit growth in bookings for 2021
                                                                                              • New launches include eco-friendly & nature-discovery rentals, and ultra-luxury rentals
                                                                                              • Key Players

                                                                                                  • Global intermediaries
                                                                                                    • Airbnb
                                                                                                      • Booking.com
                                                                                                        • Expedia/VRBO
                                                                                                          • TripAdvisor Vacation Rentals
                                                                                                            • OYO Vacation Homes
                                                                                                              • Holiday cottage specialists
                                                                                                                • Awaze
                                                                                                                  • Sykes Holiday Cottages
                                                                                                                    • Other domestic holiday cottage companies
                                                                                                                    • Launch Activity and Innovation

                                                                                                                      • Google’s new combined search will drive more consumers to property rentals
                                                                                                                        • Back to nature rentals
                                                                                                                          • Eco-friendly rentals
                                                                                                                            • Ultra-luxury rentals are blurring the lines with hotels
                                                                                                                              • Making P2P rentals safer
                                                                                                                              • The Consumer – Key Takeaways

                                                                                                                                • Over one in five adults could stay in holiday rental property in 2021
                                                                                                                                  • Rental property has bigger growth potential than other holiday accommodation
                                                                                                                                    • Airbnb is market leader but other OTAs have gained UK market share
                                                                                                                                      • Beach, pub/restaurant & parking are the most important factors
                                                                                                                                        • Off the beaten track properties sought by one in five guests
                                                                                                                                          • Consumers likely to splash out on premium rentals after COVID-19
                                                                                                                                            • Pent-up demand for larger gatherings and family celebrations
                                                                                                                                            • Impact of COVID-19 on Consumer Behaviour

                                                                                                                                              • A mood of cautious optimism
                                                                                                                                                  • Figure 16: Level of concern* about COVID-19, 2020- 21
                                                                                                                                                • Holiday booking remains well below pre-COVID levels
                                                                                                                                                    • Figure 17: Holiday booking and intentions, August 2019-June 2021
                                                                                                                                                  • Staycation plans have eclipsed intentions to travel abroad
                                                                                                                                                      • Figure 18: Holiday booking destination plans in 2021
                                                                                                                                                    • Domestic tourism could see a long-term boost from damaged confidence in overseas travel
                                                                                                                                                        • Figure 19: Changes to holidaying frequency once the coronavirus outbreak is over, by destination, 2021
                                                                                                                                                    • Previous Use of Holiday Rental Property

                                                                                                                                                      • Over one in four adults use holiday rental property
                                                                                                                                                        • Figure 20: Types of holiday accommodation used in the last 3 years, 2017-2021
                                                                                                                                                      • One in seven adults stayed in a rental property between January 2020 and May 2021
                                                                                                                                                        • Figure 21: Date of last stay in a holiday rental property, 2021
                                                                                                                                                      • Demographics of holiday rental property
                                                                                                                                                        • Figure 22: Age profile of holiday rental property guests, by property type, 2021
                                                                                                                                                    • Future Interest in Holiday Rental Property

                                                                                                                                                      • Holiday rentals have the biggest growth potential of all accommodation types
                                                                                                                                                        • Female interest in future rentals is especially high
                                                                                                                                                          • Figure 23: Types of holiday accommodation used in the last 3 years, versus future interest, 2021
                                                                                                                                                      • Holiday Rental Property Plans in 2021

                                                                                                                                                        • Over one in five adults expect to stay in holiday rentals in 2021
                                                                                                                                                          • Figure 24: Plans to stay in holiday rental property in 2021 (as of May 2021)
                                                                                                                                                        • Seven out of 10 expect to take a UK holiday in 2021
                                                                                                                                                          • Figure 25: Expected location of next holiday rental property stay, 2021
                                                                                                                                                        • COVID-19 has increased the trend towards rural stays …
                                                                                                                                                          • … but lack of overseas visitors offers a window of opportunity for London holiday rentals
                                                                                                                                                            • Figure 26: Expected holiday type for next holiday rental property stay, 2021
                                                                                                                                                            • Figure 27: Expected holiday type for next holiday rental property stay, by expected location, 2021
                                                                                                                                                            • Figure 28: Expected holiday type for next holiday rental property stay, by gender and age, 2021
                                                                                                                                                        • Holiday Rental Property Booking

                                                                                                                                                          • Airbnb and other specialists account for 43% of bookings …
                                                                                                                                                            • Figure 29: Booking channels used for last holiday rental property stay, 2021
                                                                                                                                                          • … but generalist OTAs are gaining market share
                                                                                                                                                            • Figure 30: Booking channels used for last holiday rental property stay, 2021 versus 2019
                                                                                                                                                            • Figure 31: Booking channels used for last holiday rental property stay, by type of property, 2021
                                                                                                                                                          • Age split shown between the Airbnb generation and older cottage holidaymakers
                                                                                                                                                            • Figure 32: Booking channels used for last holiday rental property stay, by age group, 2021
                                                                                                                                                          • Staycation opportunity for travel shops
                                                                                                                                                          • Important Factors When Booking a Holiday Rental Property

                                                                                                                                                            • Beach, local pub/restaurant & private parking are the top three factors
                                                                                                                                                              • Rising pet ownership is driving demand for pet-friendly properties
                                                                                                                                                                • Figure 33: Important factors when booking a holiday rental property, 2021
                                                                                                                                                              • Gardens can add value for a new generation of enthusiasts
                                                                                                                                                                  • Figure 34: Important factors when booking a holiday rental property, by type of property, 2021
                                                                                                                                                                • Parking is a critical factor for older guests …
                                                                                                                                                                  • … but rental platforms could do more to promote drive-free stays
                                                                                                                                                                    • The importance of food and drink also rises with age
                                                                                                                                                                      • Women are more likely than men to see the beach as a key factor
                                                                                                                                                                        • Entertainment technology and home design are important for under-45s
                                                                                                                                                                          • One in four families rate ‘baby/toddler-friendly’ as important
                                                                                                                                                                            • Rising demand for specialist properties for the over-75s
                                                                                                                                                                              • Figure 35: Important factors when booking a holiday rental property, by age group, 2021
                                                                                                                                                                          • Other Preferences & Opportunities for Holiday Rental Property

                                                                                                                                                                            • Six in 10 overseas renters prioritise a property with a pool
                                                                                                                                                                              • Over a third of guests are more likely to book an unusual/quirky property
                                                                                                                                                                                • Four in 10 countryside renters are more likely to book a farmhouse-style cottage
                                                                                                                                                                                  • One in four guests prefer a property ‘off the beaten track’
                                                                                                                                                                                    • Solo retreats
                                                                                                                                                                                      • Rising potential for premium rentals …
                                                                                                                                                                                        • … but rentals still seen as less luxurious than hotels
                                                                                                                                                                                          • Figure 36: Preferential factors when booking a holiday rental property, 2021
                                                                                                                                                                                        • Other opportunities
                                                                                                                                                                                          • Toys for the boys
                                                                                                                                                                                            • Pent-up demand for larger gatherings
                                                                                                                                                                                              • Add-on experiences for younger generations
                                                                                                                                                                                                • Capitalising on the COVID-19 bike boom
                                                                                                                                                                                                • Appendix – Data Sources, Abbreviations, and Supporting Information

                                                                                                                                                                                                    • Abbreviations
                                                                                                                                                                                                      • Consumer research methodology
                                                                                                                                                                                                      • Appendix: Central Forecast Methodology

                                                                                                                                                                                                        • Market forecast and prediction intervals
                                                                                                                                                                                                          • Figure 37: Lower bound, central and upper bound volume forecast for domestic holiday rental property stays, 2021-26
                                                                                                                                                                                                          • Figure 38: Lower bound, central and upper bound value* forecast for domestic holiday rental property stays, 2021-26
                                                                                                                                                                                                        • Market drivers and assumptions
                                                                                                                                                                                                          • Figure 39: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared 12 March 2021)
                                                                                                                                                                                                        • Forecast methodology
                                                                                                                                                                                                        • Appendix: COVID-19 Scenario Performance Methodology and Assumptions

                                                                                                                                                                                                          • Scenario performance
                                                                                                                                                                                                            • Figure 40: COVID-19 scenario forecasts for the volume of domestic holiday rental property stays, 2016-26
                                                                                                                                                                                                            • Figure 41: COVID-19 scenario forecasts for the value* of domestic holiday rental property stays, 2016-26
                                                                                                                                                                                                          • Rapid COVID-19 recovery, central and extended COVID-19 disruption scenarios outline
                                                                                                                                                                                                            • Scenario methodology

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