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:
Distributing listings across major booking sites for broader exposure
Offering Smart Pricing tools that respond to local demand
Providing expert guidance on local demand and positioning
Explore more insights and strategy content in the Travelnest News and Insights hub tailored to hosts preparing for 2026.
