A Private Holiday Homeowner’s Insight Guide ~ UK
by azulomo | 7 min read
COASTAL COTTAGES, CITY NICHES & WILD WALKS
Holiday Rental and Tourism Market in 2025 ~ England, Scotland & Wales
The UK might be small on a map, but in 2025, it’s mighty in short-term rental potential. From windswept island bothies and canal-side flats to converted chapels in postcard villages, guests aren’t just booking places to stay—they’re booking something that feels real. Travel here isn’t just about ticking off landmarks anymore. It’s about slowing down, seeing something from a new angle, and—ideally—staying somewhere with a log burner and well-chosen books.
Let’s be honest—most of us have a UK travel memory involving rain, a wrong turn, and an unexpectedly perfect pub. But that’s the charm. Whether it’s a hiking base in the Lake District, a bright flat above a Brighton bakery, or a thatched hideaway in the Cotswolds, guests aren’t looking for five stars. They’re looking for soul, good sleep, and maybe a pair of wellies by the door. And in a world increasingly drawn to the ‘new and now,’ the UK offers something slower, softer, and more storied. It’s a place where the journey still matters, Sunday lunch is sacred, and even the tiniest village might surprise you with an art gallery or a legendary cheese shop.
For hosts, the opportunity is wide open. Guest demand is healthy. Staycations are still strong. International travellers are returning. And travellers—from Gen Z to empty nesters—are choosing accommodation that feels different from a chain hotel. If you’ve got personality, story, or even just a really nice kettle, there’s space for you. So, let’s dive into the key trends, locations, guest behaviours, and ideas that matter for private holiday rental hosts in England, Wales, and Scotland right now.
They say there’s no place like home—but sometimes, a cosy cottage with a kind host, a cracking view, and a proper cup of tea comes awfully close.
1. Tourism Demand ~ The Staycation Stays Strong
Staycations haven’t just stuck around—they’ve grown up, settled in, and started bringing friends. In 2024, the UK clocked over 137 million domestic overnight trips, with countryside breaks and off-season escapes on the rise by 6.3% (VisitBritain, 2025). People aren’t just staying local out of necessity anymore—they’re doing it out of choice. And honestly? With rolling hills, secret beaches, and a pub at the end of nearly every walk, who can blame them?
Travellers are swapping airports for A-roads, choosing a cosy cottage and muddy boots over baggage queues and duty-free perfume. It’s less “fly and flop,” more “drive and decompress.” Places like Cornwall, Devon, and the Cotswolds are still high on everyone’s list—but guests are getting bolder, wandering into quieter corners like Northumberland, Pembrokeshire, and the Scottish Borders. These spots offer the holy grail of UK travel: soul-soothing views, fewer crowds, and the feeling of discovering something everyone else forgot to Google.
Of course, the icons still pull a crowd. Edinburgh turns into a cultural circus every August thanks to the Fringe, with rental calendars booked out months in advance. Meanwhile, those in the know are heading to the Isle of Skye and Harris, where the beaches are eerily beautiful and time seems to pause. Over in Bristol, travellers are chasing street art and sourdough, while Brighton keeps doing what Brighton does best—welcoming everyone with colour, coffee, and a soundtrack.
→ Why this matters: Guests are no longer just asking where to go—they’re asking why. And when your place answers that with charm, thoughtfulness, and a strong cup of tea? You’re not just in the game—you’re one of the reasons they stay.
2. The Guest Shift ~ Character Over Convenience
Guests aren’t just browsing for beds anymore—they’re scanning for soul. In 2025, the best bookings go to spaces that feel like they’ve been curated, not copy-pasted. Think: homes that know who they are. A little uneven. A little storied. A lot more memorable than another “neutral palette with wall art that says Live Laugh Love.”
What guests want is a place with a heartbeat. A crooked hallway with books stacked at the end. A record player you actually know how to use. A handwritten note suggesting a walk that isn’t in the guidebook and a chippy that’s open weird hours but always worth it. These aren’t just extras—they’re the reason people return.
→ Hosting takeaway: Forget perfection. Lean into personality. A home with a bit of texture, a bit of humour, and a strong point of view? That’s what stands out in a sea of sameness—and it’s what today’s traveller is actively looking for. Be the kind of stay people talk about at dinner parties. That’s the new five-star.
3. The Numbers ~ What STR Hosts Are Earning in the UK
Let’s talk money—but without the jargon. Short-term rentals in the UK are holding up well in 2025, especially if your place is in a spot people already dream of visiting (or escaping to). But don’t worry—it’s not just about being in a glossy postcode. It’s about what your place offers and how you run it.
Here’s a snapshot of what hosts are charging per night:
Cornwall & Devon: £150–£250, especially strong from spring through autumn
The Cotswolds: £180–£300, thanks to all those Londoners chasing honey-stone cottages and good scones
Scottish Highlands: £120–£200, particularly if your cabin comes with epic views and a log burner
North Wales & Pembrokeshire: £110–£190, with families and walkers flocking to coastlines and castles
Edinburgh, Bath & York: £150–£280, where culture, cobbles, and short breaks keep bookings steady
Nationwide, occupancy rates hover between 45% and 65%—which basically means your place might be booked for half the year, give or take. If you’ve got good reviews, great photos, and a bit of seasonal strategy, it’s not unusual to earn somewhere between £30,000 and £60,000+ per year (AirDNA, 2025). Some hosts earn more, especially if they’ve nailed the niche—like a romantic cottage with a hot tub, or a bold little studio that looks like it belongs in a magazine.
→ What this means: You don’t need ten properties and a background in hospitality to make this work. A single, well-run home—with personality, pricing that makes sense, and a smooth guest experience—can bring in serious income without becoming your full-time job. And yes, a welcome basket with good biscuits still helps.
4. Property Trends ~ From Converted to Characterful
Converted barns, canal boats, shepherd’s huts, Victorian terraces, old railway carriages—if it tells a story, it gets booked. Guests are choosing accommodation based on feeling.
Rural areas are seeing particular growth. Think: cabins in Northumberland, hillside cottages in Snowdonia, lochside lodges in Loch Lomond. The more immersed in nature, the better.
City-wise, guests love walkability, neighbourhood vibes, and unique touches—especially in Edinburgh, Bristol, Brighton, and London’s creative fringes (like Hackney, Peckham, and Camden).
→ Host tip: Lean into your location. Celebrate it in your design. Let your space reflect the land, the people, the pace.
5. Rules & Regulations ~ Stay Legit
UK regulations are evolving fast:
England: Properties used for STR over 90 nights/year in London need planning permission; government is consulting on a national registration scheme (Gov.uk, 2025)
Scotland: A national licensing scheme is live—hosts must apply, register, and meet safety standards
Wales: Considering tourism levies and restrictions in high-pressure areas like Pembrokeshire and Snowdonia
→ What to do: Register early, keep your paperwork clean, and use compliance as a trust-builder. In an increasingly professionalised market, clear credentials reassure guests—and protect your business.
6. Who’s Visiting ~ and What They’re Looking For
Today’s UK guest isn’t just ticking off landmarks—they’re chasing a feeling. They want to come home with stories, not just souvenirs. And in 2025, your visitors could be anyone from a starry-eyed solo traveller with a notebook to a three-generation road trip crew arguing about the playlist.
Let’s meet a few of them:
The Culture Chaser: Usually armed with a tote bag and a crumpled gallery map, this guest is squeezing as much inspiration as they can into 72 hours. They’re heading to Bristol, Brighton, London, or Edinburgh for street art, spoken word nights, and that one coffee shop someone told them about on Instagram. If your flat has original floorboards and a vinyl player, even better.
The Nature Nomad: Give this guest a thermos, a trail map, and a place with actual silence. They’re heading to Skye, the Lake District, or the Malvern Hills, where they can light a fire, walk until their phone dies, and maybe see stars that aren’t coming from a phone screen. If you’ve got a boot rack and a good blanket, you’re already winning.
The Design-Forward Traveller: They know the name of their bed linen and will definitely notice your taps. Think converted chapels in the Cotswolds, tidy terraces in Cambridge, and that perfectly imperfect cottage with limewashed walls and a Le Labo diffuser. These guests book for atmosphere—and stay because your taste speaks their language.
The Antique Enthusiast: This guest is spending their Saturday trawling Lewes, Petworth, or Tetbury with a tape measure in one pocket and a flapjack in the other. They know the difference between mahogany and teak, and will happily travel 40 minutes for “the good reclamation yard.” Bonus points if your place has vintage charm and a list of local antique haunts.
The Road-Tripper: These folks are mid-journey on the North Coast 500, or doing the unofficial (but very important) Scottish whisky trail. They’ve got windblown hair, too many snacks, and an appreciation for scenic lay-bys. If you’ve got a washer/dryer and a good whisky glass—they’ll thank you in the guest book.
The Flavour Explorer: Gin. Cheese. Sourdough. This traveller plans their break around tasting menus and distillery tours—from Silent Pool in Surrey to Tarquin’s Gin in Cornwall, or a smoky dram in Speyside. They’ll love a kitchen with decent knives and a recommendation for your favourite local deli.
→ What they’re looking for: Somewhere that gets why they came. If your space can reflect their pace, their passion, or even just make life a little easier between adventures, you’re not just offering a stay—you’re offering a story. And that’s what keeps people coming back.
7. Seasonality ~ It’s Not All About Summer
While July and August still dominate, 2025 is seeing a rise in:
Winter wellness trips in the Highlands and Cotswolds
Spring sabbaticals for remote workers (March–May)
Autumn slow stays in Norfolk, Malvern, and Hebrides
Christmas market breaks in Bath, York, and Edinburgh
→ What smart hosts do: Adjust listings, create seasonal offers, lean into mood. Cosy throws, firewood, or a hot chocolate station can turn a November stay into a guest favourite.
8. The Instagram Effect ~ Storybook, Not Showroom
The UK doesn’t scream for attention on Instagram—but it whispers something guests find even more compelling: authenticity. While some destinations rely on palm trees and pool floats, the UK is winning hearts (and feeds) with misty walks, cottage-core interiors, and settings that feel like pages from a novel. It’s not flashy—but it lingers.
In 2025, guests aren’t just scrolling for luxury—they’re saving places that feel emotionally styled. Think: linen-draped tables, crooked bookshelves, wildflower lanes, mossy stone steps, and breakfasts served in handmade mugs. It’s the kind of beauty that feels found, not fabricated.
Top UK “Instagrammable” hotspots now include:
Rye (East Sussex): winding cobbled lanes and storybook timber-framed cottages
St. Ives (Cornwall): golden light, artists’ studios, and pastel harbourfronts
Staithes (North Yorkshire): steep lanes, fishing boats, and rugged romance
Broadway (Cotswolds): antique shops, tea rooms, and golden-hour perfection
Portmeirion (Wales): pastel-painted architecture meets Italian dreamscape
Edinburgh’s Dean Village: gothic bridges, mossy walls, and medieval quiet
Oxford & Cambridge: iconic courtyards, rowing rivers, and historic charm
Lake District: mirror-like lakes, stone barns, and timeless landscapes
According to Instagram data, posts tagged #LakeDistrict surpassed 3.4 million shares in early 2025, while #Cotswolds continues to trend among lifestyle influencers and travel bloggers, consistently featuring in top UK weekend break roundups (Instagram Trends Report, 2025). Even smaller spots like Staithes and Rye are seeing spikes in geo-tags, particularly among micro-influencers and digital creatives seeking a slower, more aesthetic travel experience.
→ Design tip: You don’t need a new sofa. You need to spot the corners of your home that tell a visual story. A window seat framed by fog. A vintage mirror catching late-afternoon light. A teacup next to a well-loved book. These are the scenes guests will capture—and their followers will want to find. Think beyond interior design—think about how your space photographs. Offer mood, not just materials. Because in the age of visual travel, a single shared moment can echo into bookings for time to come.
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One Wave at a Time
The UK short-term rental market isn’t just holding steady, it’s growing up. Guests are getting choosier, oh yes — but they’re also getting more open. More open to depth. To design that feels personal. To homes that tell a story, not just show off a space. They’re not just booking for convenience anymore — they’re booking for connection. For experience. For that feeling of arriving somewhere unfamiliar, and somehow still feeling at home.
And that’s exactly where you come in. Whether you’re restoring a windswept cottage on the Cornish coast, running a family flat in York with views over a cobbled lane, or transforming a forgotten railway cottage near the Malvern Hills into a creative escape— this isn’t just a business. It’s a way of welcoming someone into your world. One kettle, one rainy walk, one unexpectedly perfect weekend at a time.
At azulomo, we help you shape something more than just a listing. We’re here for the hosts who want to do things differently —slower, smarter, and more soulfully. From clear strategy and guest-first design to support that actually feels supportive, we walk beside you as you grow a holiday rental that reflects what you value, and who you really want to welcome in.
Because the best hosting isn’t just about occupancy rates and reviews. It’s about creating spaces that feel worth coming back to.
So wherever you are on the map (or on your journey) just know: you don’t need to go fast. You just need to go with heart.
Let’s build something meaningful, one stay at a time — the azulomo way.
“The UK short-term rental scene is full of quiet power—less about flash, more about feeling. Guests aren’t chasing perfection; they’re chasing places with warmth, story, and soul. From the windswept edges of Skye to the indie buzz of Bristol, the demand is there—for homes that feel personal, thoughtful, and deeply local. For hosts, that’s the opportunity: to show up with care, lean into what makes your space unique, and build something that doesn’t just fill your calendar, but makes someone’s stay.”
