May 6, 2025

Broker Trends and Opportunities – May 2025

Letting for a Short-Term is a Long-Term Strategy

A key driver for property investors over the last 3 – 4 years has been ‘diversification’ as they look to maintain or increase yield on their investments as interest rates increased, and stress testing rates increased seemingly faster.

How Landlords Can Diversify

Ways that a landlord can diversify their portfolio include:

  • Location
  • Semi-commercial or commercial properties
  • Holiday lets and short-term lets
The Rise of Holiday Lets and Short-Term Lets

Brokers who understand their clients’ goals and the mechanics of targeted sectors can add significant value beyond transactions.

The last four years have revolutionised the Holiday Lets and Short-Term Let sector, expanding it significantly. Property finance lenders are keen to support both experienced and first-time landlords.

The UK’s shift towards ‘Staycations’ and varied accommodation types for short visits has driven consistent demand for these properties.

What Does a Short Term ‘Rental’ Look Like in 2025?

What does a short-term ‘rental’ look like in 2025?

  • It can still be a holiday cottage, bungalow, house, flat or studio!
  • A city or town centre house or flat for work or leisure stays
  • A room in any of the above for when there’s just you, or two, and you don’t need the whole pad

And that’s not an exhaustive list!

Changing Habits: How We Book Today

We no longer only rent a holiday property by the week or fortnight – we book weekend breaks Friday to Monday, and midweek from Monday to Friday.

Short-Term Let bookings can literally come in ANY shape or frequency:

  • We book Short-Term Lets from 1 night upwards for work, study or leisure
  • People book the same few nights every week when working or studying away from home
Booking Platforms and Flexibility

How we make bookings has changed – and improved I’d suggest?

  • Traditional holiday companies and agencies
  • Short Term Let booking sites or the owner’s direct website
  • Major market players like AirBnB or Bookings.com

Again, by no means the limit of ways to book!

And lenders take all of the above into account when supporting clients.

How Lenders Assess Affordability

Mortgage lenders have to evaluate the affordability of a Holiday Let or Short-Term Let mortgage – and there are as many different ways that lenders do that as there are types of booking method:

  • Estimating future bookings based on previous occupancy and rates
  • Evidencing previous rental performance and costs for limited company properties
  • Agency estimates of future rates and occupancy levels
  • Airbnb or Booking.com (or similar) bookings
  • Standard Buy-To-Let monthly rental values
Opportunity for Brokers in a Growing Market

Holiday Let and Short-Term Let mortgages offer diverse opportunities for brokers who can differentiate them from the standard Buy-To-Let market and understand why landlords may want to invest in them long-term.

Letting properties for the short-term is here to staycation – are you ready for the opportunity to help your clients?

Mark Grant, Managing Director, Fiducia Commercial Network.
May 2025.

Fiducia Network Logo
About Fiducia Commercial Network

Fiducia Commercial Network is a commercial finance ‘Appointed Representative’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.

Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.

The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years’ experience in commercial finance.

If you’d like to discuss joining Fiducia Commercial Network or you’d like to apply to become an Appointed Representative…

SPEAK TO OUR TEAM

 

To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.

For all media and marketing enquiries contact –  pr@fiduciagroup.co.uk 

Jade Keval, Sales Director at Somo

Network members can use this exclusive window before Somo Prime launches to the wider market. To learn more, contact Somo directly on 0161 312 5656 and make the most of this early access opportunity.