Holiday lets: small footprint, big impact – what PASC UK’s 2025 report means for hosts
- james73515
- Aug 25
- 3 min read
A new analysis from PASC UK takes a hard look at the size, growth, and economic value of dedicated holiday lets across England and Wales – and separates myth from measurable reality. For hosts and managers, the headline is clear: our sector represents a tiny slice of the housing stock but delivers outsized economic benefits to rural and coastal communities, all while serving mostly domestic, lower-carbon trips.
In this blog, we’ve pulled out the most important findings for operators – plus the market signals and policy prospects you should plan for over the next year.
Key facts at a glance
Scale: there are approximately 169,000 dedicated holiday lets across England and Wales – which is about 0.6% of total homes. Even in the 100 most popular coastal/rural constituencies, the average share of holiday lets is about 2.4%.
Economic value: holiday lets support an estimated 139,000 jobs and contribute £5.9 billion to the economy in England and £0.7 billion in Wales. Pay for direct suppliers has risen notably since 2023.
Planning reality: a large portion of holiday let properties cannot be primary homes due to planning restrictions – about 48% in England and 33% in Wales – further reducing any potential impact on local housing supply.
Who travels: more than 90% of guests are domestic, with the average UK round-trip about 204 miles – which contributes a dramatically lower carbon footprint compared to flying overseas. In addition, many properties now offer EV chargers.
Myth vs. fact: the housing narrative
Myth: “Airbnbs” have exploded and are making it impossible for locals to get on the housing ladder.
Fact: The word “Airbnb” gets used as a catch-all for everything from spare rooms to boutique hotels. Growth in dedicated entire homes for holiday lets has been steady, not exponential – e.g., about 3–5% in Cornwall between 2016 and 2021. The House of Commons Library has since corrected earlier references that conflated platform listings with housing stock.
Myth: Areas with many holiday lets see worse affordability.
Fact: The analysis found no statistically significant link between the number (or growth) of holiday lets and local house price growth or affordability across the top 100 constituencies. Earnings growth, not the number of holiday lets, is the stronger correlate with improved affordability.
Myth: Landlords are switching en masse from buy-to-let to short-term rentals.
Fact: Multiple surveys put switching at around 1–4%. Private rental stock in hotspots like Devon and Cornwall tracked national trends rather than collapsing due to STR conversion. The business models – costs, effort, VAT, risk – are fundamentally different.
Market signals holiday let hosts should act on
Shorter stays, later bookings. The average length of stay dipped slightly in 2024, and lead times are compressing. Expect more last-minute fills and adjust minimum stays and pricing guardrails accordingly.
Regulation affects prices. Scotland’s licensing/tourist levy framework correlated with daily rates rising faster than in England and Wales, pushing up costs for mostly British guests. Track your margin and messaging as England/Wales progress towards statutory registration.
Local spending matters. The sector underpins pubs, attractions, trades, and cleaning/linen businesses in places with few alternative employers; wage data for suppliers has improved year-on-year. Build and showcase those community links – they’re a strength in the public debate.
Policy watch: why data quality is urgent
PASC UK is urging government to implement a national register that distinguishes between spare rooms, occasional lets, and dedicated holiday homes. Bad data leads to bad policy; a one-size-fits-all approach risks unintended consequences like job losses and price rises without solving housing challenges.
What this means for your playbook
Plan for later demand: use dynamic pricing and shorter lead-time tactics to capture the last-minute market without sacrificing profit.
Own the local story: quantify supplier spend, jobs supported, and guest origin (domestic, EV usage) in your listings and stakeholder comms.
Separate models in your messaging: when talking to neighbours or officials, explain the operational workload and costs of short-term rentals vs. long-term rentals – cleaning, utilities, business rates, VAT, compliance.
Stay regulation-ready: keep documentation tidy (safety, insurance, waste contracts), and monitor registration guidance in your council so you can comply quickly and avoid disruption.
Bottom line
Holiday lets are a small share of homes with a big local footprint – jobs, spend, and sustainable domestic travel. As narratives heat up and rules evolve, hosts who lean into data, community value, and operational excellence will be best placed to thrive.
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