Planning a UK staycation this summer? If so, you’ll be joining thousands of holidaymakers opting for short-term rental accommodation instead of hotels.

But while the continued growth of the short-term lets market is providing a boost to tourism and local economies, it is also raising questions about the impact on the supply of homes available to long-term renters.

The number of short-term lets across England and Wales continues to increase, prompting renewed concerns about the impact on the supply of homes available to long-term renters.

Latest data from the Office for National Statistics (ONS) shows the sector has expanded further, underlining its growing importance to tourism and local economies. However, industry figures warn that the increasing use of residential properties for short-term accommodation may be reducing the stock of homes available in the private rented sector.

Guest nights in UK short-term lets rose by 11.5% in 2025 to 100.9 million, up from 90.5 million the previous year. Wales recorded the strongest growth among the home nations, with guest nights increasing by 17.4%, while the North East saw the largest regional rise at 22.2%.

Domestic visitors accounted for a larger share of stays, rising to 67.2% of all guest nights. Among international markets, Germany was the only major source country to record growth, with guest nights increasing by 8.5%, while visits from the US, France and other Asian markets declined.

Nathan Emerson

With rental supply already under pressure in many parts of the country, concerns remain that the conversion of properties into holiday lets could further limit housing choice for tenants and add to affordability challenges in some local markets.

The figures are likely to add to the ongoing debate over how to balance the economic benefits of short-term letting with the need to maintain an adequate supply of homes for long-term residents.

Nathan Emerson, CEO at Propertymark, commented: “The latest ONS data highlights the continued growth of short-term lets but also reinforces concerns about the impact they can have on the supply of homes available in the private rented sector.

“While short-term lets support tourism and local economies, an increasing number of properties being diverted from long-term rental use can reduce housing availability and place further pressure on affordability, particularly in high-demand areas.

“These figures demonstrate the need for local authorities to have access to robust data and appropriate powers to address imbalances where short-term lets are affecting housing supply. Propertymark continues to call for greater parity between the short-term lets sector and the private rented sector, ensuring communities can benefit from tourism without compromising access to homes for local residents.”

Clampdown 

The government is considering giving councils in England additional powers to tackle the growth of short-term lets and second homes amid concerns about their impact on local housing markets.

Matthew Pennycook

Responding to a Parliamentary question on housing availability in coastal and rural communities, housing minister Matthew Pennycook said ministers recognised that high concentrations of short-term lets and second homes can affect both the availability and affordability of housing for local residents.

Pennycook said: “We are considering what additional powers we might give local authorities to enable them to respond to the pressures created by short-term lets and second homes.”

Councils already have the ability to charge a council tax premium of up to 100% on second homes, while ministers are also progressing plans for a visitor levy in England that would allow strategic authorities to raise additional funds from overnight stays. In addition, operators of short-term lets will be required to join a mandatory registration scheme under forthcoming reforms.

The comments are likely to fuel speculation that further measures could be introduced as policymakers seek to balance the economic benefits of tourism with growing concerns over housing supply in some parts of the country.