UK Holiday Accommodation Sector Rebounds with 21% Growth

14th December 2023

UK Holiday Accommodation Sector Rebounds with 21% Growth

Research conducted by Stripe Property Group reveals that after experiencing a 24% decline in 2021 due to the pandemic, the UK holiday accommodation sector rebounded with a 21% growth in the past year. The sector is anticipated to see further expansion in 2023.

Barrows and Forrester examined the market size of the UK holiday accommodation sector based on revenue and its growth over the past decade. The findings indicate that the current estimated market size is £2.54bn, marking a noteworthy 38% increase from £1.8bn in 2013.

Despite this impressive growth, the sector might have witnessed even greater expansion if not for the adverse effects of the pandemic on the tourism and travel industry. In 2021, the market size experienced a sharp 24% contraction, representing only the second annual reduction in the past decade. The total market size fell from its peak of £2.76bn in 2020 to less than £2.1bn in 2021.

Encouragingly, a return to normalcy contributed to a 21% rebound in 2022, restoring the market size to £2.5bn. The sector is projected to grow by an additional 4% in 2023. However, the expected £2.6bn remains 4% below the pre-pandemic peak.

James Forrester, Managing Director of Stripe Property Group, commented on the sector’s resilience, stating that despite the challenges posed by travel restrictions during the pandemic, the UK holiday accommodation industry has exhibited signs of recovery. He encourages investors to explore diverse opportunities within the market, such as holiday accommodation, purpose-built student accommodation, or commercial ventures, as alternatives to traditional residential development.