The UK's short-term let sector has experienced an unprecedented surge, with 100.9 million guest nights recorded in 2025 – a staggering 11.5% increase from 90.5 million the previous year, according to Office for National Statistics (ONS) data. This rapid growth is fuelling concerns over the availability of properties for long-term residents and the broader implications for the UK housing market.
Wales bore the brunt of this trend, with guest nights rising by 17.4%, while the North East region led the country with a 22.2% increase. A significant proportion – 67.2% – of these stays were made up of domestic visitors, with Germany being the only major international market to show growth in visits, albeit at an 8.5% rise.
Nathan Emerson, chief executive at Propertymark, highlighted that these figures exacerbate existing worries about the impact on the private rental sector. He noted that while short-term lets undoubtedly support tourism and local economies, the increasing number of properties being converted from long-term rental use can reduce housing availability and intensify pressure on affordability, particularly in areas already experiencing high demand.
Propertymark has called for greater regulatory parity between the short-term and private rented sectors. They advocate for local authorities to be equipped with robust data and appropriate powers to address imbalances where short-term lets are negatively affecting housing supply. The government has acknowledged these concerns, with Housing Minister Matthew Pennycook stating that ministers recognise that high concentrations of short-term lets and second homes can impact both the availability and affordability of housing for local communities, particularly in coastal and rural areas.
In response to these concerns, the government is exploring what additional powers could be granted to local authorities to manage these pressures. Currently, councils can impose a council tax premium of up to 100% on second homes. Furthermore, plans are progressing for a visitor levy in England, which would enable strategic authorities to generate additional funds from overnight stays.
This ongoing debate aims to strike a balance between the economic benefits derived from the short-term letting market and the critical need to maintain sufficient housing supply for long-term residents. Industry figures caution that the conversion of residential properties into short-term accommodation could be reducing stock in the private rented sector at a time when rental supply is already constrained across many areas.