UK Holiday Let Market Forecast 2026: What Hosts Should Prepare For

Industry insights

UK holiday let market forecast 2026: What hosts should prepare for

5 Jan 2026

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By Amanda Sanders

The UK holiday rental sector has seen rapid evolution since 2020. As we look ahead to 2026, hosts must adapt to shifting guest behaviours, rising travel costs and changing demand patterns. Whether you host in coastal towns, regional cities or major urban centres, understanding what’s trending will help you plan pricing, occupancy and overall guest strategy for the year ahead. This forecast draws on travel industry insights, platform demand trends and economic indicators to give hosts a practical outlook for the year.

1. Travel Cost Pressures Will Shape Booking Patterns

Travel inflation - including accommodation, fuel and transport - is influencing guest behaviour across the UK. Many travellers are now more budget-conscious and plan stays that offer perceived value rather than just price alone.

Implications for hosts in 2026:

  • More guests may favour shorter but frequent stays over expensive longer holidays.

  • Staycation demand may intensify in midweek periods and shoulder seasons.

  • Competitive pricing tools will be essential to attract guests during off-peak windows.

Top Tip: Hosts should consider adopting Smart Pricing that react to cost-sensitive demand in real time, helping maximise occupancy without undercutting revenue.

2. Off-Peak and Shoulder Season Stays Are Becoming Mainstream

Recent UK travel data have shown that guests now travel beyond traditional peak summer months, especially when:

  • Remote work allows longer but staggered stays

  • Families plan around school terms

  • Budget pressures push travellers to value-driven periods

Trends expected in 2026 include:

  • Higher occupancy in early spring and autumn

  • Increased midweek bookings from remote workers and flexible travellers

  • Strong demand for shorter breaks outside school holidays

What hosts can do:

  • Market your property for “mid-week work-stay breaks”

  • Run off-peak promotions and highlight flexible check-in options

  • Feature amenities that support productivity (Wi-Fi, workspace)

3. Business Travel and Blended Trips Are Part of the Recovery

Business travel is evolving - instead of long conferences, hosts are seeing increased demand for:

  • Blended business-leisure stays (bleisure)

  • Week-long city trips that include work time

  • Travel from remote workers mixing work with weekend leisure

Impacts for hosts:

  • Business travellers tend to book outside peak leisure weekends

  • They value fast internet, quick check-in and high-quality workspace

  • Urban and regional city lettings could benefit

Top Tip: Hosts near transport hubs and with strong Wi-Fi can highlight features that appeal to these mixed-purpose guests.

4. Staycations Will Remain Strong but Selective

Domestic travel (staycations) continues to anchor UK holiday lets, with many guests opting for local or regional destinations due to:

  • Travel cost pressure abroad

  • Desire for easier, lower-stress logistics

  • Strong interest in cultural and outdoor experiences

For 2026:

  • Rural and coastal areas are expected to maintain strong demand

  • City breaks remain popular for short leisure trips and blended stays

  • Demand will vary by region, emphasising the importance of targeted marketing

Tips:

  • Tailor listings to the type of staycation guests in your area (e.g., city experiences vs countryside exploration)

  • Highlight local experiences, events and access to nature


5. Pricing Strategy Will Be More Strategic Than Ever

With travel costs rising and more alternatives available, successful pricing will depend on:

  • Dynamic pricing tools that update in real time

  • Understanding local demand cycles (weekends, school holidays, events)

  • Segmenting pricing for different guest groups (business, leisure, long stays)

Key considerations for hosts:

  • Avoid flat pricing year-round

  • Use data to adjust rates based on visibility, competition and demand spikes

  • Consider minimum night stays during peak periods

6. Technology and Guest Expectations Will Continue to Evolve

Guests in 2026 will increasingly expect:

  • Seamless digital experiences (from booking to arrival)

  • Contactless entry and clear communication

  • Easy access to local information and recommendations

Hosts should:

  • Invest in tech that enhances the guest experience

  • Clarify expectations and instructions before arrival

  • Ensure guides and local tips are updated in real time

7. Regulations and Compliance Will Still Influence Markets

Across the UK, local and national regulations are continuing to shape the landscape. Hosts should watch for changes related to:

  • Safety and licensing

  • Short-term rental registration (England)

  • Tax updates affecting furnished holiday lets

Good practice for 2026:

  • Stay informed via local authority updates

  • Ensure proper registration where required

  • Factor compliance costs into pricing and planning

Conclusion: What Hosts Should Do Now for 2026

To prepare for the year ahead:

  • Monitor demand data regularly (booking platforms, VisitBritain insights)

  • Update pricing strategies to reflect real-time trends

  • Focus on guest experience features that matter most (flexibility, comfort, tech)

  • Highlight your property’s unique value for specific guest segments

By anticipating how travel behaviours evolve and aligning pricing and amenity offerings accordingly, UK holiday let hosts can position themselves for a successful 2026.

Next Steps for Travelnest Hosts

Travelnest supports hosts throughout these market shifts by:

Explore more insights and strategy content in the Travelnest News and Insights hub tailored to hosts preparing for 2026.



UK Holiday Let Market Forecast 2026: What Hosts Should Prepare For

Start, promote, and manage your rental property with Travelnest

  • Global exposure

  • Guest messaging

  • Payment processing

  • Smart pricing

  • Calendar sync

  • Travelnest Direct

  • On-hand support

  • Management dashboard

Start, promote, and manage your rental property with Travelnest

  • Global exposure

  • Guest messaging

  • Payment processing

  • Smart pricing

  • Calendar sync

  • Travelnest Direct

  • On-hand support

  • Management dashboard

Start, promote, and manage your rental property with Travelnest

  • Global exposure

  • Guest messaging

  • Payment processing

  • Smart pricing

  • Calendar sync

  • Travelnest Direct

  • On-hand support

  • Management dashboard

Start, promote, and manage your rental property with Travelnest

  • Global exposure

  • Guest messaging

  • Payment processing

  • Smart pricing

  • Calendar sync

  • Travelnest Direct

  • On-hand support

  • Management dashboard