Explore the potential of experience-led Holiday Lets
Today’s holidaymakers are looking for far more than just value for money and a pleasant stay. Increasingly, they want stays that feel meaningful, immersive and memorable. That’s the essence of experience-led travel and it’s having a tangible impact on the UK’s Holiday Let market. Kevin Aitken, Senior Sales Manager for Residential and Holiday Let mortgages from our Intermediary Lending team, shares his thoughts.
As an adviser, you’ll have landlord clients thinking about how to stand out in a competitive landscape. They might already own a good property in a great location, but the bookings aren’t quite where they should be. The right mortgage advice ought to highlight the rising tide of holidaymakers seeking out a fresh experience. Brokers are in a position to direct them toward refurbishment finance and help them reposition their properties to meet these increasing guest expectations.
Creating a new story
Experience-led Holiday Lets are those designed around the guest journey, not just the physical space. Whether it’s a converted barn with yoga mats and walking maps, or a sustainable lodge with an outdoor shower and wood-fired hot tub, the emphasis is on connection to place, to nature, to wellbeing. The accommodation becomes part of the holiday story.
Demand for these types of stays is rising fast. Research shows 85% of UK travellers now prioritise experiences when booking a break, (1) (sourced below) and 28% plan to take a sustainability-focused holiday in 2025. (2) That could be a digital detox in a cabin, a wellness escape in a remote cottage, or a farm stay with hands-on activities for children. But, the trend is clear. The more distinctive and intentional the experience is, the more attractive the let.
Crucially, landlords don’t always need to start from scratch. A thoughtful refurbishment or a refreshed approach to marketing can unlock that all-important appeal. That might mean upgrading the heating and insulation to create a year-round wellness retreat or simply reframing what already exists. Is there a walking route guests don’t know about? A garden that could become a yoga deck? A firepit that just needs a few logs and some marshmallows? Advisers can help landlords think creatively and then offer funding solutions to bring those ideas to life.
Financing the vision
The Cumberland with its Kinder Banking ethos is well-positioned to support clients driving their Holiday Lets toward a bigger purpose. We’ve been lending on Holiday Lets for over 25 years, particularly in regions where tourism is vital to the local economy. We understand the realities of seasonality, the value of sustainability, and the business case for creating an exceptional guest experience.
For landlords looking to update or enhance their property, our refinancing options allow them to release equity, restructure borrowing or remortgage away from higher-rate deals. We support both individual and limited company structures, and refinancing can include capital raising for improvements, additions or even the purchase of a second property.
Where light or moderate refurbishment is needed, like updating kitchens, bathrooms, insulation or furnishings, we can help landlords maximise their borrowing potential. We typically discuss the proposed works upfront and may ask for indicative costs and timeframes.
We also offer Commercial Holiday Let finance for portfolios of up to 20 properties, which can be mixed in type and location. Whether it’s lakeside cottages, woodland cabins or coastal apartments, we take a flexible approach based on overall income, experience and gearing. We’re also known for realistic, case-by-case underwriting, without rigid credit scoring.
So what does this mean for advisers?
It’s an opportunity to talk to your Holiday Let clients about more than just rates and LTVs. It’s a chance to help them think more strategically. How is their property being perceived? Could a modest investment create a wellness angle, enhance the eco-credentials or highlight the authenticity of the local area? Could a remortgage give them the headroom to make small but significant changes that boost occupancy, extend the season, or command higher nightly rates?
The Holiday Let market is forecast to reach £3.2 billion by the end of 2025. (3) But the fastest-growing segment isn’t traditional stays, it’s those offering something different, something experiential. Whether your client owns one cottage or twenty, experience-led improvements can future-proof their asset and help them thrive in a maturing market.
We can support your client’s journey. From capital-raising to refurbishment finance, we provide funding that helps landlords turn potential into performance. If your client’s property has a story to tell, we’d love to help them tell it.
(1) Research from Hilton and Accor reveals that 85% of UK travellers prioritise experiences when choosing where to stay, with growing interest in sustainability, wellness and AI-powered personalisation. Accor Travel Trends 2025: all.accor.com