Martin Sims, Molo's Distribution Director
The UK holiday let market is heading into what looks set to be its strongest year on record, right at the point it enters its most regulated. It is an unusual contrast, and one that is already shaping the dynamics of the market.
A market still in growth mode
Forward bookings for 2026 are tracking up year on year, with average gross income for a three-bedroom holiday let now above £25,000. Demand is also increasing with rural and value-led destinations like the Scottish Highlands and Northumberland climbing fast alongside the regular hotspots like Cornwall and Dorset.
It is a pattern that reinforces where international demand is most active and how it is being shaped.
Regulation moves in alongside it
England’s national short-term let register is being introduced, with a new planning use class and visitor levy also in play. Owners will need registration numbers on their listings and a clearer paper trail than most have kept up to now.
Where brokers add value
When it comes to holiday lets, a more considered approach to underwriting makes all the difference. At Molo, we welcome short-term and Airbnb lets, first-time landlords, non-UK residents and expats, with criteria built for everyday cases.
About Molo
Molo is a specialist mortgage lender for landlords based in the UK and overseas. Since launching in 2018, we've processed over £2 billion in mortgage applications. Our mission is to make the mortgage experience more transparent and aligned with the needs of modern landlords, using technology to streamline key processes to support quicker, more consistent decisions.
We've won several awards including ‘Best Online Mortgage Lender' at the Lending Awards and 'Best Digital Mortgage Lender', recently, too. Molo is a wholly-owned subsidiary of ColCap Financial UK Limited.
For further information about Molo please visit www.molofinance.com
