With the UK staycation boom continuing and short-term lets outperforming traditional rentals in many regions, investing in a holiday let remains an attractive option in 2025. But the market has evolved, and today’s investors need to be more strategic than ever.
From changing regulations to shifting guest expectations, there’s a lot to consider before taking the plunge. In this blog, we’ll walk you through what’s new, what’s still working, and how to make your holiday let investment a profitable one in 2025.
1. The Market Is Still Strong—If You Choose the Right Location
Post-pandemic, domestic travel has remained popular, and destinations like York, Edinburgh, Bristol, Bath and Oxford continue to draw consistent demand from holidaymakers. Urban breaks, countryside retreats, and coastal escapes all have their niche, but the key is choosing a location with year-round appeal, not just seasonal traffic.
Look for:
- High tourist footfall and event calendars
- Good transport links
- Limited short-term let supply (less competition)
- Cities with strong business travel crossover
At mySTAYINN, we’re seeing particular success in cities like Edinburgh (during events), York (steady tourism all year), and Bristol and Bath (ideal for both holidaymakers and professionals).
2. Regulations Have Changed—And They Matter
One of the biggest shifts in 2025 is the expansion of short-term let licensing schemes in key areas across the UK.
- In Scotland, including Edinburgh, a full licensing regime is in place. You’ll need to comply with safety standards, apply for planning permission in some cases, and pay a licence fee.
- In England, a national registration scheme is expected soon, with some local councils already requiring planning consent for change of use.
- A 5% tourist tax will launch in Edinburgh from July 2026—and could spread to other cities.
Ignoring these rules is no longer an option. Investors must factor in compliance costs and timelines when planning their investment.
mySTAYINN offers hands-on support for licensing and compliance, helping you stay on the right side of regulation from day one.
3. Guest Expectations Have Evolved
Today’s guests are looking for more than a roof over their heads. Whether travelling for leisure or work, they expect:
- Fast Wi-Fi and workspaces
- Stylish interiors and quality bedding
- Self-check-in and clear instructions
- Sustainability features, like eco-friendly products and recycling
The best-performing properties in 2025 are those that feel thoughtfully designed and professionally managed. At mySTAYINN, we help owners create properties that don’t just meet expectations—they exceed them.
4. Costs Are Higher—But So Are Returns
It’s true—investing in a short-term let isn’t cheap. Between furnishing, compliance, maintenance, and marketing, the upfront costs can add up.
But the upside is significant:
- You can charge premium rates during peak periods
- Nightly income often doubles or triples long-term rents
- Properties managed professionally often achieve higher occupancy and repeat bookings
Budget for:
- Furnishing and styling your property
- Professional photography and listing setup
- Licensing and insurance
- Cleaning, linen and maintenance services
mySTAYINN offers all of the above—so you can focus on the bigger picture while we handle the day-to-day.
5. Short-Term Lets vs Buy-to-Let: The Revenue Reality
Traditional buy-to-let investments have faced increasing pressure from:
- Higher mortgage rates
- Reduced tax relief on finance costs
- Tougher energy efficiency rules
- Licensing and eviction reforms
As a result, many landlords are pivoting to short-term letting for better returns and fewer long-term tenant issues.
Here’s a simple comparison:
| Factor | Buy-to-Let | Short-Term Let |
|---|---|---|
| Monthly Income | Fixed | Variable (but higher potential) |
| Occupancy | High | Moderate to High |
| Flexibility | Low | High (owner stays, date blocks) |
| Compliance Burden | Growing | High but manageable with help |
| Guest Turnover | Low | High (but professionally managed) |
6. Professional Management Makes the Difference
If the idea of managing bookings, cleaning, maintenance, pricing, and guest communication sounds exhausting—it is. That’s why more investors are turning to full-service short-term let management.
At mySTAYINN, we provide:
- Hands-free onboarding, including photography and listing creation
- Dynamic pricing to maximise income year-round
- Licensing and compliance support
- Cleaning, linen and restocking
- 24/7 guest support and issue resolution
- Performance reports so you stay informed
We help you go from purchase to profit—without the growing pains.
7. Consider Your Exit Strategy Too
Before you invest, think ahead. Is this a 3-year income project? A 10-year hold? Will you sell it on as a trading holiday let? Could you pivot back to long-term letting or sell to another investor?
The more flexibility you build in—through location, property type and management approach—the more resilient your investment will be.
Conclusion
Holiday lets remain one of the most dynamic and potentially rewarding property investments in 2025—but they’re not without challenges. Understanding the legal landscape, choosing the right property, and delivering exceptional guest experiences are all essential for long-term success.
Whether you’re a first-time investor or transitioning from buy-to-let, mySTAYINN is here to guide you every step of the way. From setup to compliance, marketing to maintenance, we help you do it properly—and profitably.
Ready to explore the potential of holiday let investment in 2025? Contact mySTAYINN today and let’s make your short-term let strategy a success.
