Appetite for staycations remains resilient despite rising costs
Bookings to UK holiday lets, and income potential, remain up on pre-pandemic levels, with the latest figures showing a 16% increase in bookings for the Easter period, rental agency Sykes Holiday Cottages has reported.
According to its Holiday Letting Outlook Report, the average holiday let owner saw a turnover of £24,000 last year, 59% up on 2019. This rises to £33,000 for a three-bedroom property, and £57,500 for a let with five beds or more.
Sykes noted that the figure also varies based on location, with Cumbria and the Lake District, along with the Cotswolds, topping the highest earning holiday let hotspots for 2022, where owners can earn an average revenue of £28,000.
A record number of Brits will staycation this Easter amid a forecast of drier weather, with an estimated 16million to take a UK break, according to @sykescottages - a new poll shows that 31% of Brits have a staycation lined up for the long weekend, vs a quarter (25%) in Easter 22
— The B&B Association (@BandBassoc) April 5, 2023
For those weighing up what to invest in, Sykes said hot tubs continue to be the greatest boost for revenue, adding 37% to average incomes, while pet-friendly properties could earn owners 31% more, and Wi-Fi could add 26% in income.
The Sykes report also looked at how holiday let owners are responding to the ongoing conversations around the need for further regulation in the sector.
According to a poll of UK holiday homeowners commissioned for the report, 25% are very worried about the potential of new regulations or fees being enforced, with a further 52% somewhat worried.
However, despite the UK government’s call to evidence last year, holiday let owners’ sentiment remained strong, with new owner enquiries up 173% versus 2019.
The research also found that 84% of holiday let owners think bookings are still stronger than ever, with bookings to Sykes’ properties currently up 9% year-on-year, while 63% are planning to grow their holiday let portfolio over the next five years.
“Based on the findings of our Holiday Letting Outlook report, it would seem our owners have got a busy year ahead of them,” Graham Donoghue (pictured), chief executive at Sykes Holiday Cottages, said. “We’re still seeing a significant number of new holiday homeowners join us despite the rising cost-of-living, and positively for owners, bookings and income levels are continuing to grow.
“The government’s impending review into the sector can’t be ignored and our research would suggest that this is on holiday let owners’ radars too. However, at this stage, our view is that any immediate changes for the sector are quite unlikely amid other priorities in government.”
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