
January is traditionally a tough month for UK short-term rental operators, and 2025 is no exception. Rising cost-of-living pressures and severe weather are impacting demand, as highlighted by Sykes Cottages CEO, Graham Donoghue, in a recent LinkedIn post.
Decline in UK holiday rental demand
Mr Donoghue shared data showing a 15.9% drop in demand for UK holiday rentals during the first week of January, compared to the same period in 2024. UK hotels are also feeling the strain, with demand down 11.2% year-on-year.
“Short stays are seeing more significant setbacks than other categories, but [it’s] early days,” Mr Donoghue noted.
Sally Henry, from Key Data, added further context, mentioning how leap year adjustments complicate year-on-year comparisons. She shared the following stats:
1-6 January 2025: Average of 0.7 bookings per property
1-6 January 2024: Average of 0.65 bookings per property
If you look at the same 'days', 3-8 January 2024: Average of 0.75 bookings per property
The cost of living hits short-term rentals
James Cornwell, Founder of Curated Property, pointed to the cost-of-living crisis as a major factor: “Romantic weekends, family gatherings, boys’ trips – many people are cutting back. Smaller units, especially two-bedroom properties, are struggling, while high-end rentals are performing well.”
Key trends from Sykes’ December Pulse Report
Sykes’ December Pulse Report offered additional insights into UK trends:
Shorter booking lead times: Down 21% year-on-year
Shorter stays: Average stay length decreased by 7%
Top destinations: The Peak District, Cotswolds, and Lake District remain the most popular regions for holiday lets
Last-minute bookings: Remained dominant in December
Surge in 2025 interest: Searches for 2025 holidays spiked on Boxing Day
Adapting to market changes
While January presents challenges, these trends underscore the importance of adaptability in the short-term rental industry. High-end properties continue to attract guests, and last-minute bookings provide opportunities for operators to maximise occupancy during slower periods.
How's your January going so far? Let us know in the comments or send us a message.
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