living space short-term lets

Short-term rentals see boost from eco-conscious holidaymakers

Despite restrictions having been lifted on foreign travel, the appetite for short-term rentals in the UK remains stronger than ever, particularly among eco-conscious holidaymakers.

The significant reduction in international travel over the last two years has led to a greater intent from residents to holiday more in the UK.

A report by Mintel on domestic tourism revealed that more than half of UK adults planned to take a domestic holiday in the 12 months that followed August 2021. Demand for short-term rentals is expected to see a further surge from this spring onwards.

Interestingly, 18% of those who plan to spend more holidays in the UK want to limit their carbon footprint. Additionally, Mintel’s report on family holidays found that 14% of parents see a carbon reduction as one of their top five factors for choosing their next family holiday.

Further adding to the environmental focus, the survey showed that 28% of UK adults said they prioritise the environment more now than they did before the COVID-19 pandemic.

The appeal of short-term rentals in the UK

Short-term rentals in the UK provide an increasingly appealing accommodation choice for eco-conscious holidaymakers. There are a number of factors for this, such as reusing existing homes, reducing fuel usage and pollution, being able to purchase produce locally and spending money in local communities.

Merilee Karr, chair of the Short Term Accommodation Association, says: “Having seen the benefits to the environment from the reduction in travel and the positive impact their holiday pound has had on the local communities in which they stay, many UK staycationers are now factoring in their carbon footprint when it comes to selecting a holiday destination and their choice of accommodation.”

The short-term rental sector continues to go from strength to strength. Bookings for Sykes Holiday Cottages in particular are up 35% this year compared to pre-pandemic levels. And this is expected to increase even further as we approach the summer.

Is the staycation boom here to stay?

A separate report from Euromonitor revealed that the self-contained accommodation market, which includes short-term rentals, was ahead of other sectors when it comes to value of sales recovery for 2021.

Short-term rentals are expected to be one of the key drivers of the UK’s recovery from the pandemic. The sector is forecast to reach 2019 levels of around £2.1bn this year.

A study conducted by Sykes Holiday Cottages revealed that UK holidaymakers are planning two staycations on average in the next year. Almost half said that limiting their environmental impact is a crucial consideration when choosing a UK holiday over foreign travel.

The staycation boom has fuelled a rise in investors and second homeowners entering the short-term rental market. A poll of UK holiday let investors revealed a quarter surveyed only started during the pandemic.

Additionally, 84% of holiday let owners said bookings for 2022 are stronger than ever, and the same number is confident that this trend will continue to grow throughout the next five years.

Graham Donoghue, chief executive at Sykes Holiday Cottages, comments: “Bookings for our holiday lets this year are through the roof, showing that the staycation boom is here to stay. Brits are looking to make the most of what our beautiful country has to offer and the self-catered option still appears to be a popular choice.

“Clearly environmental considerations are playing a role in the decision to staycation too. This is something we were starting to observe before the pandemic but it has really taken off over the last two years.”

Where are the top investment hotspots for short-term rentals?

Enquiries from prospective holiday let investors have almost doubled this year. The Holiday Let Outlook Report by Sykes Holiday Cottages revealed the best places to invest in holiday lets in the UK.

Cumbria and the Lake District topped the highest-earning short-term rental hotspots list with holiday lets earning an average revenue of £44,000 per year.

Devon and Dorset followed closely behind with £35,000 and £32,000 respectively, and the Peak District came in fourth.

Location and amenities are two of the most important factors in a short-term rental’s success. When looking for a property to let out on a short-term basis, investors need to ensure it’s in an attractive location and offer desirable facilities in order to strengthen the property’s investment prospects.

At BuyAssociation, we have a number of property investment opportunities suitable for holiday lets or short-term rentals, including some holiday let properties in Cumbria. Get in touch to find out more.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:



Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT