Holiday lets sector strong despite threat of regulation - claim

A UK holiday lets firm insists the sector is in good health despite the return of foreign vacations and the end of the pandemic.

Sykes Holiday Cottages says bookings to UK holiday lets and income potential remains up on pre-pandemic levels, with the latest figures demonstrating a 16 per cent increase in bookings over the Easter period.

The average Sykes owner saw a turnover of £24,000 last year, 59 per cent up on 2019. This rises to £33,000 for a three-bedroom property, and £57,500 for a let with five beds or more.

The figure also varies based on location, with Cumbria and the Lake District topping the highest-earning holiday let hotspots for 2022 according to Sykes’ revenue figures, where owners can earn an average revenue of £28,000.

The Cotswolds also made its first appearance on the top five highest earning regions list, with an average annual income of £28,000, closely followed by the Peak District in third place with an average turnover of £27,500.

For those weighing up what to invest in, hot tubs continue to be the greatest boost for revenue, adding 37 per cent to average incomes, while pet-friendly properties could earn owners 31 per cent more.

According to a poll of UK holiday home owners commissioned by Sykes a quarter are very worried about the potential of new regulations or fees being enforced, with a further half somewhat worried.

Last week the government launched two consultations on its desire to see a mandatory register of holiday lets, with new properties entering the sector likely to require planning permission.

Sykes chief executive Graham Donoghue says: “We’re still seeing a significant number of new holiday home owners join us despite the rising cost of living, and positively for owners, bookings and income levels are continuing to grow.

“The government’s impending review into the sector can’t be ignored and our research would suggest that this is on holiday let owner’s radars too. However, at this stage, our view is that any immediate changes for the sector are quite unlikely amid other priorities in government.

“In the meantime, our focus as a business is on continuing to demonstrate the sector’s positive impact while playing our part in supporting its sustainable growth.”

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