Supporting Holiday Let owners to grow, one property at a time

In the early days of the Holiday Let boom, the conversation was often about a single cottage on the coast or a converted barn in the countryside. Many owners saw these properties as lifestyle investments, a way to supplement income, or just to enjoy for the occasional personal use.

Moving forward to today and the market has certainly changed. Holiday Lets are increasingly being treated as structured portfolios, with investors holding multiple properties across regions. What began as a sideline has, for many, become a professional investment class.

If you look at the figures, it’s easy to understand why there has been a change in mindset. Tourism has held up well in 2025. VisitBritain, in forecasts published in January, expects 43.4 million overseas visits this year, generating £33.7 billion of spending in the UK economy. Domestic tourism also remains strong.

VisitEngland’s Great Britain Tourism Survey, published in March 2025, reported that residents took 106 million overnight trips in 2024, spending £32.9 billion, despite a 10% fall in trip numbers compared with 2023.

Looking ahead, a survey reported by MoneyWeek in July 2025 suggests 63% of adults intend to take a UK holiday this year, with a third making it their main trip. The same research found the typical family is expected to spend £1,292, up 17% on last year, which could add £24 billion to the summer economy.

The short-term rental sector shows a similar sentiment. VisitBritain’s accommodation performance report, released in July 2025, highlighted that supply in June was up 6% year on year, with almost half a million properties available. Occupancy slipped to 43%, down four percentage points on the previous June, but average daily rates rose 20% to £311 and average revenue per property increased by 15% to £3,409. The figures highlight the importance of scale, pricing discipline, and careful management for owners seeking consistent returns.

Regulation and tax are also heavily reshaping the sector. In England, the Department for Levelling Up, Housing and Communities confirmed in spring 2025 that a new planning use class and national register for short-term lets will be introduced. In Wales, the Welsh Government is pressing ahead with a visitor levy and registration system, while Scotland continues to operate its short-term let licensing regime, which was reviewed in early 2025. At national level, the government abolished the Furnished Holiday Lettings regime in April 2025, removing mortgage interest relief and other long-standing tax benefits. These changes mean Holiday Lets are now subject to the same scrutiny as other property investments.

In the past, borrowers often had to stitch together several different loans to expand a Holiday Let business. That made growth more complicated, with multiple lenders’ terms and conditions to manage. At Cumberland for Intermediaries, we offer finance for up to 6 properties within a portfolio, and Cumberland for Commercial offers finance for up to 20 properties. For borrowers, that means scale without fragmentation. For brokers, it simplifies the advice process and allows them to plan around a single set of criteria rather than several competing ones.

This matters, because having your portfolio lending with one lender gives investors that strong relationship with a provider who knows and understands their strategy. It also allows the lender to assess the portfolio as a whole, taking into account cash flow, seasonality and location mix. We believe that approach fits the way Holiday Lets have moved within the market.

This shift is also something we are seeing play out directly in the cases brought to us. Our process is based on manual underwriting, which allows us to understand the story behind each portfolio. For some borrowers, that might be a family adding to a cluster of cottages. For others, it could be a professional landlord aiming to grow. In each case, our aim is to support growth one property at a time, in a way that works for owners and the communities where these homes sit.

The message for brokers is transparent. Demand remains solid, but sustainable returns may depend on a professional approach. Rules are tighter, so planning is essential. Lending options are often changing, opening up new opportunities when they do. Guidance from brokers and lenders has never been more valuable in helping clients manage complexity, and ultimately grow responsibly.