Guest nights in UK short-term rental accommodation rose by 11.5% in 2025 to 100.9 million, up from 90.5 million the previous year, according to Office for National Statistics data, intensifying concerns about the impact on long-term rental housing supply.
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 67.2% of all guest nights, with Germany the only major international market to record growth at 8.5%. Visits from the US, France and other Asian markets declined.
Impact on rental sector
Nathan Emerson, chief executive at Propertymark, said the figures highlight concerns about the impact on private rental sector supply. “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,” he said.
The trade body called for greater parity between the short-term lets sector and the private rented sector, and for local authorities to have access to robust data and appropriate powers to address imbalances where short-term lets are affecting housing supply. The issue comes as England faces a significant shortfall in housing delivery, placing additional pressure on existing stock.
Government response
Housing minister Matthew Pennycook said the government is considering what additional powers it might give local authorities to respond to pressures created by short-term lets and second homes. Responding to a Parliamentary question on housing availability in coastal and rural communities, he said ministers recognised that high concentrations of short-term lets and second homes can affect both availability and affordability for local residents.
Councils already have the ability to charge a council tax premium of up to 100% on second homes. Ministers are also progressing plans for a visitor levy in England that would allow strategic authorities to raise additional funds from overnight stays. Operators of short-term lets will be required to join a mandatory registration scheme under forthcoming reforms.
The figures are likely to fuel debate over how to balance the economic benefits of short-term letting with the need to maintain adequate housing supply for long-term residents, particularly in areas where housing market dynamics are already under pressure. Industry figures warn that the conversion of residential properties to short-term accommodation may be reducing stock in the private rented sector at a time when rental supply is already constrained in many parts of the country.
