![\"Is](\"https:\/\/www.benhams.com\/press-release\/wp-content\/uploads\/2024\/06\/pr-2-300x200.jpg\")
The latest research from London lettings and estate agent, Benham and Reeves, has shown that while the number of short-term rental properties has climbed across the majority of holiday hotspots, there\u2019s been a reduction in occupancy rates across the board. <\/p>\n
Benham and Reeves analysed the current state of the short-term rental market, looking at the level of available market stock, occupancy rates and revenues and how these market metrics have changed over the last year*.<\/p>\n
The figures show that there are over half a million active short-let listings across the UK and when it comes to this number, there has been an increase across all but one holiday hotspot analysed by Benham and Reeves. <\/p>\n
With 52,494 active listings, London is home to the largest number of short-term lets, with this number having increased by 22% over the last year. Just Manchester has seen a larger increase at 29%, with the Peak District (+18%), Lake District (+15%) and Cotswolds (+10%) also seeing a notable increase. <\/p>\n
Somerset, Dorset, Devon and Cornwall have also seen an increase, with just Edinburgh seeing the number of active listings fall year on year (-12%). <\/p>\n
However, while many landlords have been tempted away from the private rental sector by the far higher rental incomes secured across the short let space, the figures highlight a worrying trend that could come back to bite them. <\/p>\n
All 10 of the areas analysed by Benham and Reeves have seen a reduction in occupancy rates over the last year, with the largest coming across Devon (-16%), Dorset (-14%) and the Cotswolds (-14%).<\/p>\n
As a result, annual revenues have also been lacklustre over the last year, with Devon (-7%), Cornwall (-4%), London (-4%) and Manchester (-3%) all seeing an annual drop, while annual revenue growth across Dorset (0%), the Cotswolds (1%) and Somerset (2%) have been largely flat.<\/p>\n
The result? A price hike passed onto the consumer in order to help balance the books, with all 10 areas seeing a sharp increase in the average daily rate charged – the largest of which have been seen across Edinburgh (+18%), the Lake District (+16%), Somerset (13%), the Peak District (+13%) and Cornwall (+10%).<\/p>\n
Director of Benham and Reeves, Marc von Grundherr, commented:<\/strong><\/p>\n \u201cMany traditional landlords have succumbed to the allure of the short-term rental market in recent years, as they\u2019ve looked to boost the profit margins of their rental portfolio following a string of legislative changes to the PRS sector. <\/p>\n This is a trend that has continued over the last year with the vast majority of areas we analysed seeing an increase in active listings. As a result, it seems as though short-let providers have ramped up daily rates in order to compensate, but this is a tactic that is unlikely to resonate with consumers given the current economic landscape.\u201d<\/p>\n The latest research from London lettings and estate agent, Benham and Reeves, has shown that while the number of short-term rental properties has climbed across the majority of holiday hotspots, there\u2019s been a reduction in occupancy rates across the board. Benham and Reeves analysed the current state of the short-term rental market, looking at the … <\/p>\n
\nHowever, the data also suggests that the heat may be dying down with respect to consumer demand, with occupancy rates falling significantly and denting annual revenues in the process. <\/p>\n\n\n\n
\n Location<\/th>\n Active listings<\/th>\n Active listings annual change<\/th>\n Occupancy rate<\/th>\n Occupancy rate annual change<\/th>\n Revenue per year<\/th>\n Revenue per year annual change<\/th>\n Average daily rate<\/th>\n Average daily rate annual change<\/th>\n<\/tr>\n \n Manchester<\/td>\n 5,505<\/td>\n 29%<\/td>\n 51%<\/td>\n -11%<\/td>\n \u00a319,000<\/td>\n -3%<\/td>\n \u00a3124.70<\/td>\n 9%<\/td>\n<\/tr>\n \n London<\/td>\n 52,492<\/td>\n 22%<\/td>\n 61%<\/td>\n -13%<\/td>\n \u00a333,300<\/td>\n -4%<\/td>\n \u00a3190.20<\/td>\n 7%<\/td>\n<\/tr>\n \n Peak District<\/td>\n 5,368<\/td>\n 18%<\/td>\n 62%<\/td>\n -8%<\/td>\n \u00a336,700<\/td>\n 7%<\/td>\n \u00a3186.70<\/td>\n 13%<\/td>\n<\/tr>\n \n Lake District<\/td>\n 10,461<\/td>\n 15%<\/td>\n 66%<\/td>\n -12%<\/td>\n \u00a342,400<\/td>\n 12%<\/td>\n \u00a3203.10<\/td>\n 16%<\/td>\n<\/tr>\n \n Cotswolds<\/td>\n 5,701<\/td>\n 10%<\/td>\n 58%<\/td>\n -14%<\/td>\n \u00a339,500<\/td>\n 1%<\/td>\n \u00a3218.00<\/td>\n 9%<\/td>\n<\/tr>\n \n Somerset<\/td>\n 5,097<\/td>\n 6%<\/td>\n 57%<\/td>\n -13%<\/td>\n \u00a331,200<\/td>\n 2%<\/td>\n \u00a3178.80<\/td>\n 13%<\/td>\n<\/tr>\n \n Devon<\/td>\n 14,847<\/td>\n 6%<\/td>\n 57%<\/td>\n -16%<\/td>\n \u00a334,100<\/td>\n -7%<\/td>\n \u00a3200.40<\/td>\n 9%<\/td>\n<\/tr>\n \n Dorset<\/td>\n 9,526<\/td>\n 6%<\/td>\n 58%<\/td>\n -14%<\/td>\n \u00a334,400<\/td>\n 0%<\/td>\n \u00a3196.10<\/td>\n 8%<\/td>\n<\/tr>\n \n Cornwall<\/td>\n 18,623<\/td>\n 5%<\/td>\n 60%<\/td>\n -13%<\/td>\n \u00a333,000<\/td>\n -4%<\/td>\n \u00a3187.40<\/td>\n 10%<\/td>\n<\/tr>\n \n Edinburgh<\/td>\n 5,379<\/td>\n -12%<\/td>\n 73%<\/td>\n -1%<\/td>\n \u00a340,100<\/td>\n 17%<\/td>\n \u00a3187.70<\/td>\n 18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n \n\n\n
\n \n Location\n <\/th>\n \n Active listings\n <\/th>\n<\/tr>\n \n Est United Kingdom total<\/td>\n 528,700<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n \n
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\n Data sourced from AirDNA*
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