The Holiday Let Market Enters a Different Phase

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.

Speak to Molo Finance’s BDM team.