The Intermediary – September 2025 - Flipbook - Page 19
BUY-TO-LET
In focus
Supporting holiday
let owners to grow
I
n the early days of the holiday
let boom, the conversation was
oen about a single coage
on the coast or a converted
barn in the countryside. Many
owners saw these properties
as lifestyle investments, a way to
supplement income, or just to enjoy
for the occasional personal use.
Moving forward to today, and the
market has certainly changed. Holiday
lets are increasingly being treated as
structured portfolios, with investors
holding multiple properties across
different regions. What began as
a sideline has, for many, become a
professional investment class.
If you look at the figures, it’s easy
to understand why there has been
a change in mindset. Tourism has
held up well in 2025. VisitBritain, in
forecasts published in January, expects
43.4 million overseas visits this year,
generating £33.7bn of spending in the
UK economy.
Domestic tourism also remains
strong. VisitEngland’s Great Britain
Tourism Survey, published in March
2025, reported that residents took
106 million overnight trips in 2024,
spending £32.9bn, despite a 10% fall in
trip numbers compared with 2023.
Looking ahead, a survey reported
by MoneyWeek in July 2025 suggests
63% of adults intend to take a UK
holiday this year, with a third making
it their main trip. The same research
found that the typical family is
expected to spend £1,292, up 17% on
last year, which could add £24bn to the
summer economy.
The short-term rental sector shows
a similar sentiment. VisitBritain’s
accommodation performance report,
released in July 2025, highlighted
that supply in June was up 6% yearon-year, with almost half a million
properties available. Occupancy
slipped to 43%, down four percentage
points on the previous June, but
average daily rates rose 20% to £311
and average revenue per property
increased by 15% to £3,409. The
figures highlight the importance of
scale, pricing discipline, and careful
management for owners seeking
consistent returns.
LISA HODGSON
is senior sales manager
at The Cumberland
Building Society
Changing shape
Regulation and tax are also heavily
reshaping the sector. In England, the
Department for Levelling Up, Housing
and Communities has confirmed that
a new planning use class and national
register for short-term lets will be
introduced. The Welsh Government is
pressing ahead with a visitor levy and
registration system, while Scotland
continues to operate its short-term let
licensing regime, which was reviewed
in early 2025.
At national level, the Government
abolished the Furnished Holiday
Leings regime in April 2025,
removing mortgage interest relief and
other longstanding tax benefits. These
changes mean holiday lets are now
subject to the same scrutiny as other
property investments.
In the past, borrowers oen had to
stitch together several different loans
to expand a holiday let business. That
made growth more complicated, with
multiple lenders’ terms and conditions
to manage.
At Cumberland for Intermediaries,
we offer finance for up to six
properties within a portfolio, and
Cumberland for Commercial offers
finance for up to 20 properties.
For borrowers, that means scale
without fragmentation. For brokers,
it simplifies the advice process and
allows them to plan around a single
set of criteria rather than several
competing ones.
This maers, because having your
portfolio lending with one lender
gives investors that strong relationship
with a provider who knows and
understands their strategy. It also
allows the lender to assess the portfolio
as a whole, taking into account
cashflow, seasonality and location
Holiday lets are
increasingly being treated
as structured portfolios,
with investors holding
multiple properties”
mix. We believe that approach fits the
way holiday lets have moved within
the market.
We are also seeing this trend play
out directly in the cases brought to
us. Our process is based on manual
underwriting, which allows us to
understand the story behind each
portfolio. For some borrowers, that
might be a family adding to a cluster
of coages. For others, it could be a
professional landlord aiming to grow.
In each case, our aim is to support
growth one property at a time, in a
way that works for owners and the
communities where these homes sit.
The message for brokers is
transparent. Demand remains solid,
but sustainable returns may depend
on a professional approach. Rules
are tighter, so planning is essential.
Lending options are oen changing,
opening up new opportunities when
they do. Guidance from brokers and
lenders has never been more valuable
in helping clients manage complexity
and grow responsibly. ●
September 2025 | The Intermediary
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