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Operators offering high-quality, experience-led accommodation are well-positioned for the years ahead
Savills insight 🔍
The UK holiday accommodation sector remains resilient, despite operational pressures, regulatory changes and shifting consumer behaviours. Demand remains broadly stable, but guests are becoming more selective. Later bookings, shorter stays, and a strong emphasis on quality now characterise the market.
Despite the macroeconomic backdrop, consumer expectations continue to rise. Guests are increasingly shortening their stays rather than compromising on standards. This aligns with broader sector commentary showing that quality has become a clearer driver of decision-making, helping high-standard operators maintain occupancy.
Regulation is becoming more significant, with changes to rules on non-domestic rates, short-term let licensing, and potential levies in certain regions.
Demand segmentation highlights several strong-performing groups. DINKYs (dual-income, no kids yet) remain a key driver of year-round short breaks, favouring high-amenity accommodation and curated, experience-led stays. Couples are seeking more personalised experiences; operators who can deliver personalised packages (wellness elements, dining experiences, stargazing, immersive activities) are capturing valuable midweek and off-peak demand.
Simultaneously, the multigenerational travel trend continues to grow. Families increasingly seek space, privacy and onsite experiences that cater to all ages, making well-located group accommodation a consistent outperformer. Another defining theme is dog inclusivity.
Looking ahead, operators that combine high-quality accommodation with memorable, experience-led offers, while staying agile amid regulatory and cost pressures, will be well positioned to succeed in 2026 and beyond.
High standards, high expectations for UK stays
Industry insight 🔍
“2025 was a positive year for the high-quality UK holiday home market, with continued demand for short breaks and particularly resilient performance from dog-friendly properties, design-led couples’ retreats and larger homes suited to multigenerational stays.
This year, we expect these themes to remain, as guests increasingly prioritise space, wellbeing and time together, while staying value-conscious. The key challenge for operators is balancing premium positioning with “bookability” – excellent onsite facilities, high-quality interiors, flexible stay lengths, an exceptional guest experience and well-considered house rules – as even small barriers can disproportionately impact conversion in competitive local markets.
Emerging trends include a growing expectation for genuine pet inclusivity, wellness-led features and a continued shift towards experience-led travel in less-crowded, more authentic destinations."
Emma Crabtree, Founder, Crabtree & Crabtree
2025 IN NUMBERS
England
- The North East, East Midlands and West Midlands have the fewest short-term rental properties available and, subsequently, the lowest number of nights reserved.5
- The spread of nights reserved across the UK follows a similar trend to that of supply, with the most nights being reserved in London, the South West and the South East in December 2025.5
Scotland
- Average occupancy for self-catering properties in Scotland fell slightly from 41.6% in 2024 to 41% in 2025; however, this remains the highest rate across the UK. Scotland saw notable growth (7%) in supply in December 2025 compared to the same month in 2024.5
- The average duration of trips in Scotland during the third quarter of 2025 was 3.1 nights, with an average spend per night of £124 and an average spend per trip of £384.6
Wales
- Wales has experienced the steepest decline in its occupancy rate since 2019 (-8%), and recorded the lowest occupancy rate across the UK in December 2025 (37%).5
Farm diversification at a world heritage site
CASE STUDY: Longstones Avebury
Creating both a legacy and an additional income stream were the motivations behind a successful farm diversification project within the Avebury World Heritage Site in Wiltshire. Manor Farm in Avebury Trusloe is owned by the Butler family, who have farmed the land for four generations, dating back to the 1930s.
With the Basic Payment Scheme (land-based farm income support) being phased out, the family wanted to find a solution to ensure the long-term financial security of the farm business, while protecting the character of the village and its sensitive surroundings. In 2019, the family sought advice from Savills, drawing on the expertise of specialists within the food and farming, architecture and building surveying, planning and tourism teams.
The option that stood out as ensuring long-term viability, while complementing the location, was a holiday accommodation business using the existing redundant farmyard site.
The site falls within the Avebury World Heritage Site, so the appearance and landscaping of the new buildings were a particular consideration. Four of the units are newly built, and two are converted from existing buildings. Another consideration was to make the buildings as sustainable as possible, with features such as triple‑glazed windows, high levels of insulation, and air-source heat pumps.
The whole project took five years to complete, from conception through construction, landscaping, interior design to marketing of the new business, “Longstones Avebury”. The business is performing well and receiving excellent reviews from guests.
Ben Butler, who has been immersed in the project throughout, says, “We are incredibly excited to have been able to breathe new life into what was a disused farmyard. For us, it was important to create a legacy.”
4 Sykes December 2025 Holiday Letting Pulse Report, 5 VisitBritain UK short-term rentals, 6 VisitScotland – Domestic Overnight Tourism report
Read the articles within Spotlight: Tourism, Leisure & Events below.
