The Intermediary – September 2026 - Flipbook - Page 8
BUY-TO-LET
In focus
THE BLAME
GAME
EXPLORING THE REAL IMPACT OF HOLIDAY
LETS ON UK HOUSING
by Jessica O’Connor
Bucolic countryside, windswept coastlines
– beneath these familiar British holiday images
lies a controversial undercurrent. Holiday lets
are often characterised as a malevolent force,
stripping certain regions of housing options for
added further pressure.
Jorden Abbs, chief executive at Commercial
Trust, says: “The exceptional conditions we
locals in favour of investor ambition and out-of-
saw during the staycation boom were never
town tourists.
going to last indefinitely, and investors are
The real extent to which holiday lets are taking
homes away from first-time buyers (FTBs) varies
considerably from one region to another. At
now approaching the sector in a much more
considered way.
“What we are seeing is less of a rush into
the same time, these short-term lets remain a
holiday lets simply because they appear attractive
viable investment and form part of the tourism
on paper, and more scrutiny of whether the
economy that supports vital spending across
property can genuinely work as a long-term
many rural and coastal communities.
Against a housing crisis shaped by many other
investment. Borrowers are looking closely at
achievable occupancy, seasonality, running
issues, such as increased construction costs,
costs and how the property fits into their
affordability pressures and planning restrictions,
wider portfolio.”
the question remains whether holiday lets are
bearing their fair share of the blame.
After the boom
Samantha Ward, commercial director at
Hanley Economic Building Society, adds: “We
are seeing borrowers focus more heavily on
affordability, occupancy assumptions and long-
The holiday let market of today looks markedly
term profitability, reflecting higher interest rates
different from the one that emerged during
and regulatory changes.”
the pandemic. With international travel heavily
restricted and ‘staycations’ suddenly the order
For some brokers, that adjustment has
translated into a drop in activity. Aaron Strutt,
of the day, demand for domestic breaks surged,
product and communications director at Trinity
bringing holiday accommodation investment
Financial, says his firm receives far fewer holiday
firmly into the spotlight.
let enquiries than it once did, with interest
Since then, the conditions underpinning that
boom have shifted. Overseas travel has long since
returned, borrowing costs have risen, and the
abolition of the Furnished Holiday Lettings (FHL)
6
qualifying properties. In some areas, increased
Council Tax liabilities on second homes have
instead emerging from homeowners looking for
mortgages that allow occasional Airbnb use.
He says: “It seems like holiday let demand has
dropped and it is unlikely to come back any time
tax regime in April 2025 removed a number
soon. There was a period where holiday lets were
of the tax advantages previously available to
incredibly popular, and while many of the people
The Intermediary | September 2026
