Research from property developer Stripe Property Group has shown that having rebounded from a pandemic dip of 24% in 2021, the size of the UK holiday let market grew by 21% last year, with the sector expected to benefit from further growth in 2023.
Market analysis by estate agents Barrows and Forrester shows that the estimated market size has grown significantly over the past decade, from £1.8bn in 2013 to £2.5bn in 2022.
However, this growth may have been even more impressive had the pandemic not brought the tourism and travel sector to its knees, as in 2021 the market size of the UK holiday let sector reduced by 24% in a single year.
It’s estimated that the sector will grow in 2023, according to IBISWorld data, but the expected £2.6bn will remain some 4% below the pre-pandemic peak.
James Forrester, MD at Stripe Property Group, commented: “While staycations boomed in popularity during the pandemic, and continue to do so, the UK holiday accommodation sector was hit hard by the restrictions imposed on travel.
“The sector has shown promising signs of a return to form and this growth is expected to continue this year.
“It should certainly be a consideration for those looking to invest within the property market who might not wish to follow the traditional path of a residential development.”
