Earlier this year, BuyAssociation reported that 47% of UK families looking for short term rentals and holiday accommodation opt for cottages or villas, rather than traditional hotels. Add to this, the rise of the “work from home” culture and how more people (now more than ever) are drawn towards nomadic lifestyles – then the sector of short-term rentals is expected to continue growing, even after the pandemic.
While the industry has been on the receiving end of some backlash, as critics say it’s largely contributing towards the housing crisis, it’s important to remember that the expectation of travellers as well as the general ecosystem of “modern-day” workers in the UK has shifted.
As such, the short-term rental industry serves these changing needs well, and can be an opportunity for property business owners to get creative with their earnings.
In today’s piece, we’ll look into why now is still the golden time to invest in the business of short-term rentals and consequently, change the entire landscape of your future.
Short Term Rentals – A Shift in Traveller Behaviour
A few years ago, short-term rentals were marketed by hosts to international holiday-makers, and those were investing a lot of time and money to tour a destination that was far away from their home.
However, since the pandemic – and the travel restrictions it introduced – more people than ever before have geared towards staycations/ domestic travel. Either because the lockdown has encouraged them to appreciate local sights more, or the pandemic has financially impacted them – making staycations seem more affordable.
This notable shift in traveller behaviour has opened-up opportunities that were previously few and far between for STR hosts. In fact, a summer article from TravelWeekly claimed that domestic travel is certainly “here to stay” over the rest of 2022 and 2023 – with 58% of UK travellers reporting that they are planning staycations rather than holidays abroad with their families.
According to the same article, the main reasons for UK travellers to take holidays are to:
- Relax (46%)
- Go to the beach (38%)
- Spend time with loved ones (35%)
With so many coastal towns across the United Kingdom and iconic British countryside and seasides, the travel (and more specifically, short-term rentals) market in the country is likely to see continuous growth.
Today’s travellers – predominately millennials and Gen Zs – prioritise experiential holidays more than any other generation.
This new wave of the population is bored of the cumbersome nature of traditional hotel rooms, and much prefer accommodation with flexibility, personality, and space that allows them to socialise with others easily. In this instance, short-term rental accommodation ticks every single box.
This article from YPulse clearly states that millennials and the industry’s “younger consumers” feel the need to travel more than ever since the pandemic. It also outlines a clear preference among “Airbnb style” accommodation for the current and future generations – because of the flexibility it offers.
On the other hand, votes towards traditional hotels seem to be on the decline. According to YPulse, the number of millennials who prefer to stay in hotel accommodation while on holiday, has nearly halved since 2017.
Remote Working Culture
The pandemic jolted nearly all of the UK’s population into a new “work-from-home culture” in 2020. Lockdown gave people a “taster” of what it would feel like to work remotely; with a large chunk of them choosing to continue with this lifestyle, even after the world opened up.
Fifty of the country’s biggest employers have said that they have no plans to return to an office (source: bbc.com); and 19% of the British public have claimed that they’d like to continue working from home for the foreseeable.
What’s interesting is that there’s been a massive spike in interest in hybrid working (where people combine working from an office and working from home), with 85% of working people currently doing this now.
This means there’s now a greater demand for properties as short-term rentals in the UK, as more and more people can easily take short domestic breaks, without needing to worry about taking time off work.
The age of Zoom and Teams meetings has enabled a new working generation to fulfil their responsibilities anywhere – with the preference being STRs over boxed-up hotel rooms.
Are You Leveraging the Rise in UK Short-Term Rentals?
A lot of the changes we’re witnessing in traveller and workplace behaviour are here to stay (if not grow) over the coming years. This means there’s no better time to invest in short-term rentals and see a great return from it.
An increasing number of landlords from across the country are entrusting Luke Stays (part of Luke Capital Group) to manage their properties as short-term rentals, where our experienced team takes care of the entire process – from accommodation listing, guest booking, payment, and stay.
This model enables landlords to quadruple their monthly earnings (in return for very little work) and make the most of a market that’s redefining the fabric of British culture.
If you’re interested in boosting your income via short-term rentals with a trusted and professional team, get in touch with a member of our friendly team – where we’d be happy to discuss numbers with you.