2022
9
UK Holiday Rental Property Market Report 2022
2022-07-26T04:04:57+01:00
OX1103185
2195
153558
[{"name":"Hotels and Accommodation","url":"https:\/\/store.mintel.com\/industries\/holidays-travel\/hotels-accommodation"}]
Report
en_GB
“After being hit hard by the COVID-19 outbreak, the UK holiday rental property market rebounded strongly in 2021 and is set for another solid year in in 2022. The reopening…

UK Holiday Rental Property Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Holiday Rental Property Market Report identifies consumers’ attitudes towards holiday rental properties, the impact of the cost of living crisis, and key players and innovations in the holiday rental market. This report covers the holiday rental market size, market forecast, market segmentation and industry trends for the UK holiday rental market.

 

Current Market Landscape 

Despite the rising cost of living, the conflict in Ukraine, and the ongoing concerns about COVID-19, the release of pent-up demand for holidays is playing a key role in supporting the growth of the UK holiday rental market size. The holiday rental property market remains the holiday accommodation type with the most significant growth potential. Despite the removal of bans on overseas travel, domestic demand for holiday rentals will likely remain healthy in the short-term.

 

Market Share and Key Industry Trends

A rise in overseas travel and ongoing economic uncertainty has the potential to dampen growth levels in the UK holiday rental property market over the next two years.

However, the rising cost of living is diminishing consumers’ sense of financial wellbeing, causing a heightened degree of caution that will cause some to re-evaluate their holiday plans. Although, this may benefit the UK holiday rental market, with people finding better value for money domestically than they could abroad.

  • 49% of UK adults are interested in using a holiday rental property in the future.
  • 61% of holidaymakers are interested in booking a holiday rental holiday in the UK.
  • 21% of holidaymakers have booked a rental property using Airbnb.
  • 53% of holidaymakers specifically search for rental properties that are located near a beach.

 

Future Trends in the UK Holiday Rental Market

The UK holiday rental property market is positioned to experience a period of healthy growth once the political and economic situation stabilises. The pandemic has fostered a greater appreciation for more spacious alternative accommodation options, while the trend towards ‘remote working holidays’ will help boost remand. The holiday rental market is also likely to benefit from regulatory developments taking place within the EU. These are likely to spread to other countries and will create a more stable operating environment, which will improve consumer confidence in booking holiday rental properties.

Read on to discover more details or take a look at all of our UK Travel & Holidays Market Research.

Understand Quickly

  • The impact of the sharp rise in the cost of living on the holiday rental property market.
  • The longer-term influence of COVID-19.
  • Recent regulatory developments and how they could potentially impact the market.
  • Key players and innovation in the holiday rental property market.
  • What consumers look for when choosing a holiday rental company to book with.
  • Which search options are most useful when consumers look for a property online.
  • Other consumer preferences and opportunities for holiday rental property.

 

Covered in this Report

Products:  Holiday rental property refers to holiday lettings, including: cottages, houses, villas, gîtes, chalets, lodges, town/city apartments, flats or just rooms in a house.

Brands:  Airbnb, Awaze (cottages.com, Hoeseasons, Blue Chip Holidays, Quality Cottages, Novasol), Booking.com, Google Flights, Sykes Holiday Cottages (Cornish Cottages Holidays, Heart of the Lakes, Helpful Holidays, Menai Holidays), Expedia/Vrbo, TUI, Jet2holidays, Sonder, TripAdvisor, OYO Vacation Homes, Classic Cottages, Holidaycottages.co.uk, National Trust Holidays, Toad Hall Cottages, Original Cottages, The Landmark Trust.

 

Expert Analysis from a Specialist in the Field

This report, written by George Zaborowski, a leading senior analyst in the Financial sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

After being hit hard by the COVID-19 outbreak, the UK holiday rental property market rebounded strongly in 2021 and is set for another solid year in in 2022. The reopening of overseas travel for UK residents means that growth in domestic holiday rental stays is unlikely to be as strong over the next several years. However, the recent sharp rise in the cost of living and instability in the value of the pound will help keep the staycation trend going in the near-term as consumers are likely to find greater value for money in UK-based holiday rentals than those located overseas.”

George Zaborowski
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for UK holiday rental property
      • Figure 1: Category outlook, 2022-27
    • The market
    • UK holiday rental property market bounced back strongly in 2021
    • Inflation may extend staycation trend, but growth will level off as more travel abroad
      • Figure 2: Market size and forecast for domestic holiday rental property, by volume, 2017-27
      • Figure 3: Market size and forecast for domestic holiday rental property, by value, 2017-27
    • Companies and brands
    • A mix of companies compete for business in the holiday rental market
    • Airbnb introduces largest revamp of its platform in a decade
    • Sykes Holiday Cottages improves user experience for renters and property owners
    • Booking.com establishes ‘Travel Sustainable Badge’
    • The consumer
    • Half of UK adults interested in staying in a holiday rental in future
      • Figure 4: Types of holiday accommodation used in the last three years, versus future interest, 2022
    • Over half who are interested are planning a stay at some point in 2022
      • Figure 5: Plans to stay in holiday rental property in 2021 vs 2022 (as of May 2021 and 2022)
    • More planning a holiday rental abroad in 2022…
    • …but demand for UK holiday rentals remains strong among over-35s
      • Figure 6: Expected location of next holiday rental property stay in 2021 vs 2022 (as of May 2021 and 2022)
    • Around 40% of bookings are made via Airbnb or a holiday rental specialist
      • Figure 7: Booking channels used for last holiday rental property stay, 2021 versus 2022
    • Previous experience the most common factor driving choice of booking company
    • Recommendations and advertising most likely to be a factor for younger guests
      • Figure 8: Factors influencing the choice of company to book a holiday rental property with, 2022
    • Online search that facilitates finding rentals near points of interest most valued
      • Figure 9: Important search options when looking for a holiday rental property online, 2022
  3. Issues and Insights

    • Impact of inflation will be mild and will help extend the staycation trend
    • Google’s entrance to the travel sector is significantly altering the holiday rental property market’s competitive dynamics
  4. Market Size and Performance

    • UK holiday rental property market rebounded strongly in 2021
      • Figure 10: Volume and value performance of the domestic holiday rental property market, 2017-21
    • Rented house and cottage sector drives resurgence
      • Figure 11: Volume of domestic holiday rental property stays, by property segment, 2017-21
  5. Market Forecast

    • Return to overseas travel set to dampen UK holiday rental market growth…
      • Figure 12: Category outlook, 2022-27
    • …but high inflation will help to extend staycation trend in the near-term
    • Growth in the number of stays expected to flatten out from 2023 to 2027
      • Figure 13: Market size and forecast for domestic holiday rental property, by volume, 2017-27
      • Figure 14: Market size and forecast for domestic holiday rental property, by value, 2017-27
    • Forecast methodology
    • Learnings from the last income squeeze
  6. Market Drivers

    • High inflation is putting significant pressure on household incomes…
    • …and is diminishing consumers’ sense of financial wellbeing
      • Figure 15: Household financial wellbeing index, 2016-22
    • However, demand for holiday rentals will persist in the near-term
    • High inflation and falling Pound may extend staycation boom
    • COVID-19 has had a transformational effect on the holiday rental market
    • More people have experienced holiday rentals
    • Heightened attention to health and safety
    • Increase in longer duration ‘working holidays’
  7. Regulatory and Legislative Environment

    • Inconsistent regulatory environment a key source of operational uncertainty
    • EU-wide regulation for holiday rentals under consideration
  8. Key Players

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

    • Airbnb enhances search options in major upgrade to its platform
    • Booking.com introduces ‘Travel Sustainable Badge’
    • New Google trip-planning tool can make finding rental properties easier
    • Sykes Holiday Cottages improves UX via enhanced flexibility
  10. Previous Use of Holiday Rental Property

    • A quarter of adults used a holiday rental property in last three years
      • Figure 16: Types of holiday accommodation used in the last three years, 2017-22
    • Holiday rental property user profile varies according to type of property
      • Figure 17: Demographic profile of holidaymakers, by types of holiday accommodation used in the past three years, 2022
  11. Future Interest in Holiday Rental Property

    • Holiday rentals continue to see the highest level of consumer interest…
    • …but waning fears about COVID means a more competitive landscape
      • Figure 18: Types of holiday accommodation used in the last three years, versus future interest, 2022
    • Future interest highest among women, 45-65s and the affluent
      • Figure 19: Use of any type of holiday accommodation* in the last three years, versus future interest, by gender, age, socio-economic group and presence of children, 2022
  12. Holiday Rental Property Plans in 2022

    • Over half who are interested in holiday rentals planning a stay in 2022
    • Young, affluent and those with younger children most likely to have booked
      • Figure 20: Plans to stay in holiday rental property in 2021 vs 2022 (as of May 2021 and 2022)
    • 36% plan to rent a holiday property abroad in 2022
    • Under-35s driving demand for overseas holiday rentals
      • Figure 21: Expected location of next holiday rental property stay in 2021 vs 2022 (as of May 2021 and 2022)
    • Beach and rural destinations preferred above all others
      • Figure 22: Expected holiday type for next holiday rental property stay, 2022
    • Beach holidays a middle age destination, while city breaks skew young
    • Those renting in the UK most likely to stay in a countryside location
      • Figure 23: Expected holiday type for next holiday rental property stay, by expected location, 2022
  13. Holiday Rental Property Booking

    • Two in five bookings are made via Airbnb or a holiday rental specialist…
    • …but generalist OTAs and tour companies now play a bigger role
    • One in seven bookings are made directly with holiday property owners
      • Figure 24: Booking channels used for last holiday rental property stay, 2021 versus 2022
    • Airbnb the leader in both the rental house and apartment segments
      • Figure 25: Booking channels used for last holiday rental property stay, by type of property, 2022
    • Younger generations flock to larger high-tech booking channels
      • Figure 26: Booking channels used for last holiday rental property stay, by age group, 2022
  14. Factors Influencing Choice of Holiday Rental Property Company

    • Previous experience the most common factor driving choice of booking company
      • Figure 27: Factors influencing the choice of company to book a holiday rental property with, 2022
    • Recommendations and advertising most influential for younger guests
      • Figure 28: Factors influencing the choice of company to book a holiday rental property with, by age group, 2022
  15. Important Search Options when Choosing a Holiday Rental Property Online

    • High value placed on ability to search for rentals near points of interest
      • Figure 29: Important search options when looking for a holiday rental property online, 2022
    • Finding holiday rentals with outdoor space most valued among over-55s
    • Young people most value filtering results based on points of interest…
    • …and features like suitability for large groups or dedicated workspaces
      • Figure 30: Important search options when looking for a holiday rental property online, by age group, 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 31: Lower bound, central and upper bound volume forecast for domestic holiday rental property stays, 2022-27
      • Figure 32: Lower bound, central and upper bound value forecast for domestic holiday rental property stays, 2022-27
    • Market drivers and assumptions
      • Figure 33: Key economic drivers, 2016-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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