Holiday lettings industry worth £4.35bn a year

A report by the London School of Economics has put the annual value of the UK’s holiday rental industry at £4.35bn a year.

It also says that the industry has created over 95,000 jobs nationwide.

The report, produced in conjunction with a firm called HomeAway.Inc, says the self-catering holiday rental industry contributes £100m in tax and generates gross income for property owners of £950m.

According to the report, 36% of holiday rental owners are likely to buy an additional rental home in the next five years.

Kath Scanlon, research fellow at the LSE and one of the authors, said: “This report suggests that the holiday rental industry contributes to the UK economy by increasing tourism income and creating jobs. These effects are felt in regions across the country.

“Holiday rental visitors stay longer at their destinations and therefore spend more – in fact, many visit rural or seaside areas specifically to stay in attractive holiday rental properties. This has helped areas like Cornwall where tourism has pumped new pounds into previously struggling locales.

“Most holiday rental owners support other local businesses. Our survey found that over 90% of rental hosts across the country highlight local community offerings when asked for recommendations by their guests.

“Support is also in the form of employment, with over three-quarters of owners employing staff to assist with property maintenance.

“Nationally, owners spend an average of about £1,600 per year per property on hiring employees.”

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2 Comments

  1. Robert May

    I can't dispute anything Ms Scanlon has come up with but would suggest that those departments and lobbyists who are so scathing of the Private rented sector would do well to note.

    Planning resrictions in favour of Holiday lets that effectively prohibit locals from developing and living in the countryside.
    No Client cash accounting regulations on holiday letting means the industry is wide open to tax evasion and money laundering.
    Deposit protection does extend to protect deposits on holidays.
    CMP-. What's that?

    Nothing is more effective at creating Theme Park Britain where the locals are expected to refrain from traditional sports or live in the resorts that are being created than the holiday letting industry. Apart from that it is as she says, you do your best to encourage investment in the sector. I guess the tax breaks available to Holiday let owners is a bit too political to mention, shame that would make a great bit of the sales pitch.

    "Previously struggling Cornwall" really took the biscuit, thank you for you charitable minimum wage handouts, that nearly covers the bus fare to travel the 12 or 15 miles from the unfashionable bits where the local have to live.

    I really can't tell you have very 'Time Share' this is!
    Considerwobbly richer than Yeow!

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  2. Robert May

    With the angry rant over, some explanation of the £4.35 billion is in order.
    Where has that figure come from? If it is based on tax returns I understand it. If it is based on availability x £/week x properties. Ms Scanlon ought to be mentioning roughly 50% voids; her numbers are about half what she ought to be reporting. My calculations based on the viability study done for a software product showed income from the sector is quite a bit more than that. The concerning lack of transparency over how and when deposits and balances are paid, which differ from firm to firm so much and the accounting principles employed means even if Ms Scanlon’s estimate is correct it is essentially un-reconcilable.

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