Holiday lets have long been part of the fabric of UK tourism. From National Trust cottages in the 1940s to today’s diverse mix of farm conversions, beach houses and countryside retreats, the sector has supported rural and tourism economies for decades.
But in recent years, holiday lets have faced increasing scrutiny. Headlines often claim they are damaging housing supply or pushing up local house prices, while policy proposals continue to target the industry.
To address these debates, the Professional Association of Self-Caterers (PASC UK) has published its first Form and Value report (August 2025) on the size, growth, and economic importance of dedicated holiday lets in England and Wales. Drawing on research by Frontier Economics and booking data from Key Data, the report provides a clear picture of the sector and dispels some common misconceptions
The Scale of the Holiday Let Sector
Holiday lets are often portrayed as a dominant force in rural housing markets. In reality, they make up a very small slice of the housing stock:
- England: Around 147,000 dedicated holiday lets, just 0.6% of all homes. Despite their small footprint, they contribute £5.9 billion in GVA and support over 120,000 jobs.
- Wales: Around 22,000 dedicated holiday lets, representing 1.5% of homes, contribute £0.7 billion GVA to the Welsh Economy and 18,300 jobs.
- Nearly half of English holiday lets (48%) and a third in Wales cannot legally be used as primary homes due to planning restrictions.
This means many properties in the sector are not competing with local families for housing — they exist specifically as holiday accommodation.
Economic and Community Impact of Holiday Lets
The report reinforces what many in the industry already know: holiday lets are crucial to local economies, especially in rural and coastal communities where employment options are limited.
- Across England and Wales, holiday lets sustain 139,000 jobs.
- These are not just low-paid seasonal roles. In fact, 88% of direct suppliers now earn more than £15 per hour, and 70% earn over £17.50 per hour (PASC UK, 2025 survey).
- In areas with higher concentrations of holiday lets, wages have grown faster than the national average, leaving residents around £575 per year better off (Frontier Economics, 2023).
- Around 26% of English lets and 18% of Welsh lets are on working farms, providing essential diversification for farming businesses.
Affordable Travel Options for UK Tourists
The benefits aren’t just economic. Holiday lets also deliver accessible, sustainable travel for UK families:
- Over 90% of visitors to holiday lets in England and Wales come from within the UK.
- The average return journey to a UK property produces 0.129 tonnes of CO₂ per car. By contrast, a single family return flight to Spain creates 2.9 tonnes of CO₂.
- More than a third of surveyed holiday lets now have EV chargers, compared with just 3.3% of all UK homes.
Clearing Up Common Myths
Holiday lets are often misunderstood, particularly when all types of short-term rentals are grouped together. The PASC report challenges some of the most common misconceptions:
- “Airbnb growth = more holiday homes”
Airbnb is just a platform, not a property type. Its listings include everything from spare rooms to yurts, B&Bs and entire homes. Growth in Airbnb listings does not mean a surge in holiday houses. - “Holiday lets drive up house prices”
Analysis by Frontier Economics found no link between the concentration of holiday lets and local house price growth or affordability issues (2015–2022). House prices are influenced far more by interest rates, migration trends, and the supply of new homes. - “Landlords are switching from long-term rentals to holiday lets”
Multiple surveys show this is rare: typically, only 1–4% of landlords make the switch. In fact, many private landlords are leaving the sector entirely rather than moving into short-term lets.
Market Trends in 2025
The way guests book and stay is changing, and owners need to keep an eye on evolving patterns:
- Bookings are rising: In England, average arrivals per property grew from 30.4 in 2023 to 31.1 in 2024. In Wales, the figure rose from 27.8 to 29.
- Stays are getting shorter: Average length of stay dipped to 4.9 nights in England and 5.1 in Wales.
- Last-minute bookings are becoming the norm: Summer holidays, in particular, are seeing more bookings made closer to arrival dates.
- Costs are climbing: The average turnover for a holiday let is £15,000–£30,000, but this comes with high operating expenses — cleaning, utilities, laundry, and agent fees. Owners typically spend 15 hours a week running their property.
Policy Challenges Ahead
The sector faces ongoing regulatory scrutiny. With over 20 separate policy interventions under consideration or already in motion across England and Wales, including registration schemes and potential tourism levies, owners are operating in an increasingly complex environment.
PASC UK warns that poorly designed regulation — especially if based on inaccurate or incomplete data — risks harming rural jobs and economies without solving local housing issues. A national short-term let register, capturing clear data on property types and use, is seen as essential to informed policymaking.
Why This Matters
For owners, this report is an important reminder: while holiday lets face challenges, they are also part of the solution. They:
- Provide jobs and higher wages in areas where opportunities are scarce.
- Support farming and rural businesses through diversification.
- Offer sustainable holidays for millions of UK families.
- Represent a tiny share of the housing stock, with little evidence they drive affordability issues.
Final Thoughts
Holiday lets have been part of the UK tourism landscape for decades, long before online platforms reshaped the industry. The PASC UK report confirms what many owners experience first-hand: this is a hardworking sector that contributes significantly to local communities, while offering visitors memorable and sustainable holidays.
As policymakers debate the future of short-term letting, decisions must be based on accurate evidence, not misconceptions. For holiday let owners, the message is clear: your businesses play a valuable role — and now, more than ever, that needs to be recognised.
At GroupAccommodation.com we see and hear the challenges every day from our owners, and we’re proud to partner with PASC UK to ensure that property owners and managers — and the wider tourism economy — get the support they need to thrive in the UK.
Read The Full PASK UK Form and Value Report
Get all the data direct from PASC UK.
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