UK Staycation Market Update

Key insights from the Holiday Letting Outlook Report 2025

Despite growing concerns around cost of living and overseas travel reopening, the UK staycation market remains resilient – and Northumberland continues to outperform many traditional hotspots.

Below, we share the most relevant insights from the latest Holiday Letting Outlook Report 2025 from our parent company, Sykes Holiday Cottages for holiday let owners in Northumbria and the wider North East – including market performance, what guests search for, and practical ways to increase bookings and income.

Bamburgh Castle image credit Shutterstock

Holidays in the UK

The Outlook Report shows UK holiday let owners earned an average of £24,700 per property in 2024 (up from £24,500 in 2023).  In addition, overall UK holiday let bookings rose by 2.2% in 2024 versus 2023, making it Sykes’ biggest-ever year for bookings.

For owners, it’s also useful to understand typical operating costs. The report found an average annual running cost of £7,500 (covering maintenance, marketing, bills, taxes and more).

Read the full Outlook Report here

Guest preferences: what people search for

The report also identified the top five most-searched features on the Sykes website:

• Pet-friendly
• Hot tubs
• Large properties
• Sea views
• Swimming pools

For owners of holiday lets in Northumbria, these features align well with demand for coast-and-country breaks plus providing year-round getaways. The report also quantifies the impact of three high-performing choices:

• Hot tubs are linked to 21% more predicted revenue.
• Flexible short stays deliver 29% more bookings per year.
• Pet-friendly listings receive 9% more bookings per year.

Pipistrelle, Bamburgh Ref. 1122284

If you’re considering upgrading your Northumberland holiday let with features guests actively search for, our local team can advise on what delivers the best return

UK holiday letting trends

Coastal areas 

Sea views are listed in the top five most-searched features on the Sykes website. That indicates strong customer intent for coastal-style breaks— in Northumbria, properties dotted along or near the beautiful coastline are likely to be among the most searched-for.

Dog-friendly 

Pet-friendly is the number 1 most searched feature in the report’s top-five list, and pet-friendly properties see 9% more bookings per year. So, in Northumbria, areas that naturally suit dog owners (easy access to outdoor space/walks/coastline/countryside) align with what guests are searching for most.

Short-breaks  

The report shows that allowing flexible short stays is linked to 29% more bookings per year. That suggests areas that work well for weekends and mid-week breaks are particularly suited to market demand.

Larger group trips (bigger homes / family & friends)

Large properties is in the top five most-searched features. So in Northumbria, holiday cottages that naturally suit multi-generational or group stays (parking, space, proximity to activities) are popular with what guests are looking for.

Income rises sharply with bedroom count:

• 4-bed: £34,300
• 5-bed: £46,600
• 6+ bed: £75,000

This clearly demonstrates how larger properties in Northumbria can outperform smaller lets, particularly for family and group bookings that dominate in peak periods.

Hot Tubs

Hot tubs are a top searched feature and are associated with 21% more predicted revenue. So properties where hot tubs are feasible/attractive (privacy, views, year-round use) align with stronger revenue potential.

Unique properties

The report shows unique properties average £32,200 and detached houses £31,400 (top earning types). Northumbria properties that have the wow factor or where owners can offer guests a distinctive product (unique accommodation type, detached privacy) are very popular choices.

Consideration of environmental impact has increased since the previous survey, with more people choosing UK holidays in an effort to be more ‘environmentally friendly’.

Want to know more about buying a holiday let in Northumbria, look here

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What owners are doing..

The report highlights the practical steps owners are taking to manage costs and maintain performance:

• 39% made their property available for more days in the year
• 33% increased weekly rates to cover growing costs
• 25% claimed capital allowances before the FHL deadline
• 22% claimed small business rates relief
• 21% transferred their property to a limited company

In a market where guest booking patterns and operating costs are shifting, these changes show the value of treating holiday letting as a proactive business – especially through flexible availability and thoughtful investment in guest-appeal features.

Marmalade Cottage, Seahouses Ref. 1121980

Why not check out helpful blogs on furnished holiday let tax guide  and advice on Stamp Duty

Read the latest Budget Announcement here

Owner sentiment & regulation changes

The holiday let market update report found that 45% of holiday let owners in the UK say they’ve been impacted by changes in the sector in recent years.  North East is among the areas where 52% of owners say they’re most impacted by changes.

The most common changes owners report affecting them include:

• Increased rate of council tax: 58%
• New checks for safety measures: 56%
• Furnished Holiday Lettings tax regime abolishment: 33%
• Increase in minimum days letting requirement to qualify for business rates: 32%
• Planning permission required for letting: 28%

UK staycation market

Heading into 2026

The report’s timeline shows sector policy changes continue to develop across the UK, including the abolition of the FHL tax regime from 6 April 2025.

Puffin Cottage, Craster Ref. 1175140

Despite this, owners remain confident. Over the next five years, the report found:

• 35% plan to renovate part or all of their property
• 23% plan to buy another holiday let property
• 23% plan to add new eco-friendly features
• 23% plan to add new income-boosting features
• 21% plan to install glamping accommodation on existing land

How do guests choose a holiday let agency?

With so many agencies to choose from, we asked participants about their top priorities when selecting an agency for their UK holidays.

When choosing a holiday cottage agency to book from, consumers’ top three priorities are:

• That the property offers good value for money
• The property has accurate and detailed property descriptions
• The agency has a variety of high-quality properties available to choose from

Social media reputation has also increased in a consumer’s consideration when selecting an agency. Sykes outperforms the rest of the market when asked about reputation in the staycation industry.

Also looking at repeat bookings, our survey found that the top three reasons for a consumer to book again are:

• They felt that the property offered good value for money
• There was excellent customer service available
• The agency has a flexible booking policy

Our offices in Alnmouth and Seahouses are home to a passionate team who live and breathe Northumberland. We’re always just a phone call or visit away. Want to know more about the team at Northumbria Coast & Country Cottages, then read our Meet the Team blog

Want help maximising your Northumbria holiday let?

If you’re considering holiday letting in Northumbria, or you want to improve the performance of an existing holiday let, our local team can help you understand what changes will have the biggest impact on bookings and income – from availability strategy to the features guests actively search for.

Give our friendly team a call today — explore your options with us! To find out more, contact us via email newowners@nccc-ltd.co.uk or call 01665 830783. Get your free owner pack here and book your free pricing appraisal today!

**All data is taken from our parent company, Sykes Holiday Cottages Staycation Index, and is correct at the time of writing**