Short-Term Rentals: 2025 Market Trends Report
The UK short-term rental market in April 2025 continued its upward trajectory, with strong performance across most key indicators compared to the same period last year. This growth highlights a resilient and steadily expanding market, despite a slight decline in average length of stay.
Key Market Highlights
Short-Term Rentals: 2025 Market Trends Report Overview
In this Short-Term Rentals: 2025 Market Trends Report, we explore the latest developments.
Download Report PDF file >>>
Compared to April 2024, this April saw:
- 7% increase in property supply
- 5% rise in nights reserved
- Occupancy rate up 1 percentage point (now at 43%)
- Average Daily Rate (ADR) up 18%
- Average revenue per property up 26%
One factor influencing these positive results could be the timing of Easter, which fell in March last year but was in April this year, boosting April’s performance.
Growth was widespread across the UK. The East Midlands and North East England led with the strongest year-on-year increase in supply. Meanwhile, Wales topped the chart for demand, showing a 13% increase in nights reserved.
Scotland was the only region where demand remained flat, and London was the only area to see a slight dip in occupancy, down 2 percentage points. On the other hand, Wales saw the biggest occupancy boost, up by 4 points.
City Rankings: Who’s Up, Who’s Down
Among UK cities, London, Edinburgh, and Manchester retained their positions as the most booked destinations. However, Bristol climbed the ranks to become the 4th most popular city in terms of nights reserved, while Birminghamdropped to 6th place.
Shifting Guest Origins
Looking at March 2025 (the latest available data for reviews), Brazil and India showed the largest increases in guest review volume, up by 21% and 19% respectively, compared to March 2024. Conversely, reviews from Russia and Chinasaw dramatic drops, down by 195% and 102%.
Other Insights
- The average length of stay dipped slightly to 7.6 nights, 4% less than last year.
- Property capacity booked was larger than last year, suggesting more group or family travel.
- Future bookings show strong ADRs through summer, with rates projected to hit £340 in July.
Final Thoughts
April 2025 painted a largely positive picture for the UK’s short-term rental sector, with supply and demand growing in tandem and strong performance in revenue metrics. Regional and international travel dynamics are continuing to evolve, with Wales, Bristol, and emerging guest markets like Brazil and India all showing noteworthy momentum.
If you’re involved in property letting or thinking of entering the market, now is an excellent time to assess your strategy—especially with summer on the horizon.
