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How does holiday letting look in 2024?

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Now in its third year, the Sykes Holiday Letting Outlook Report 2024 is a comprehensive review of the UK’s holiday letting industry. This annual report offers valuable insights into the short-term accommodation sector, detailing trends, challenges, and opportunities for holiday let owners.

The report opens with a warm welcome from Graham Donoghue, CEO of Sykes Holiday Cottages, highlighting the continued popularity of staycations and the high demand for holiday cottages across the UK. Despite recent industry changes, holiday letting remains a profitable long-term business.

Download the report here

What else have we learned from the report?

High Demand for Holiday Letting

The report notes record bookings for Easter 2024, with an 11% increase in bookings compared to previous years. This surge resulted in an average income of £3,200 per owner during the school holiday period​​.

Owner Concerns About Industry Changes

More than 65% of holiday let owners expressed concern about recent changes in the sector. However, not all owners are expected to be impacted by these changes, particularly those unaffected by the furnished holiday let tax regime​​.

Strong Earning Potential

In 2023, the average income for a holiday let owner was £24,500. The Cotswolds emerged as the top-earning region, reflecting the lucrative nature of holiday letting in certain areas​​.

The industry at a glance

The report provides an insightful snapshot of the holiday letting industry:

  • The average turnover for a UK holiday let in 2023 was £24,500, up from £24,000 in 2022.
  • Bookings increased by 8% year-on-year, reaching 71% above pre-pandemic levels.
  • The top reasons for renting properties include supplementing existing income, future financial investment, and generating retirement income​​.

Impact of Regulatory Changes

The holiday letting sector has faced several regulatory changes, particularly in Scotland and Wales, with significant tax changes coming in the UK Budget. The report explores these changes and their potential impact on owners. Despite the challenges, Sykes Holiday Cottages, in partnership with tax advisory firm Zeal, offers guidance on mitigating these effects​​.

Earnings Potential

The report highlights the earning potential across different regions and property types. The Cotswolds, Cumbria, and the Lake District are among the highest-earning regions, with specific data showing average incomes for various property sizes. Notably, regions like Northumberland and East Anglia have seen significant income growth, indicating emerging opportunities for holiday let owners​​.

Running a Successful Holiday Let

To maximise revenue, holiday let owners are encouraged to focus on popular features such as hot tubs, WiFi, and proximity to pubs. Unique and high-demand property types, like detached houses and farm stays, also contribute to higher earnings. Sykes’ Income Maximisation Strategy is highlighted as a key tool for owners, helping them earn, on average, 12% more revenue​​.

Find your perfect place to stay with Manor Cottages.

Supply and Demand Dynamics

The report maps the areas where demand for holiday lets has grown the most over the past five years. Despite economic challenges, the UK holiday let market remains robust, with strong potential for new listings and increased bookings in 2024. Strategic pricing, excellent maintenance, and superior service are emphasised as critical factors for success​​.

Summary

The Sykes Holiday Letting Outlook Report 2024 is an invaluable resource for anyone involved in the UK holiday letting industry. It offers a thorough analysis of the sector, backed by data and expert insights, and provides practical advice for navigating changes and maximizing earnings.

As Sykes Holiday Cottages continues to champion holiday let owners, this report serves as a testament to the enduring appeal and profitability of holiday letting in the UK.

Don’t forget to download the report here.

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