UK short-term rental trends: insights from Key Data

December is on track to deliver a strong finish to the year for UK short-term rentals, with occupancy pacing 5% higher year-on-year and average daily rates (ADR) up 3% according to forward-looking data from analytics company Key Data.

Revenue per available rental (RevPAR) is currently pacing 7% higher than the same period last year, signalling firm winter demand and strengthening pricing conditions heading into the holiday season.

The findings come from Key Data’s UK Winter 2025 Index Report, which tracks real-time performance across more than 1.2 million direct-sourced short-term rental properties nationwide.

Strong finish to the year for UK short-term rentals

Autumn provided a solid foundation heading into winter. October RevPAR rose 8% year-on-year and November increased 5%, supported by consistent ADR growth of between 4% and 7%.

Earlier in the year, Q3 data showed more moderate national growth, with paid occupancy up 1%, ADR up 3%, and RevPAR up 4%, led by England and Scotland. The stronger autumn results and positive December pacing indicate that market momentum improved as the year progressed.

Behavioural shifts continue to challenge STR operators

Against this backdrop, the report shows continuing behavioural shifts among travellers, including shorter booking windows, slightly shorter stays, and increasing reliance on online travel agencies (OTAs). These trends are reflected most clearly in Q3, where direct booking share fell from 53% to 45% of reservations year-on-year, while Airbnb and Booking.com both gained ground. Booking.com increased its reservation share from 17% to 22% and its revenue share from 11% to 15%, reinforcing its growing influence on both volume and guest spend.

Shorter stays and shorter lead times remain defining features of guest behaviour. Stay lengths declined slightly across September, October, and November, and booking windows fell by 4% to 7% year over year, reinforcing the shift towards later, more spontaneous trip planning.

'Guests are booking later, staying shorter, and relying heavily on OTAs'

Sally Henry, Key Data's Vice President of Business Development, EMEA, said: “December’s strong pacing is a clear indication that demand remains present, even in a year defined by mixed signals and shifting traveller behaviour. Occupancy, ADR, and RevPAR are all trending ahead of last year heading into the holidays, which gives operators a valuable cushion. At the same time, the data shows guests are booking later, staying for shorter periods, and relying more heavily on OTAs. That creates new operational pressures and puts more weight on pricing strategy, channel diversification, and maintaining visibility across platforms.”