The Coronavirus pandemic has had a major impact on the property rental market from short letting to medium term and long term rental.
Short lets or holiday letting have been the most affected with domestic and international travel severely limited with lockdowns and government restrictions in place. As a result, there has been a general shift to longer average stays or medium-term rentals if people need a place to stay. The biggest beneficiary has been a boost for ‘staycation’ locations across the UK.
Long term rentals have been more active vs short term letting but also subdued with lower demand leading to significant reductions in rental rates.
To what extent are these trends temporary or permanent?
We believe it will take some time for travellers to regain their confidence to travel more regularly and internationally. However, the good news is we do expect demand to return and grow especially for self-catering properties and Airbnb type accommodation in particular which was the most resilient short term rental property type during the pandemic. It appeals to different groups from tourists, business travellers, contractors, students or workers for shorter-term projects to domestic guests relocating or visiting friends & family.
The appeal of short- and medium-term lettings in private accommodation offers guests a high quality and unique experiences at attractive rates. We expect ‘staycation’ locations to continue to benefit from domestic demand and a return of international & business travel to benefit city stays.
The growing interest to stay in private rental accommodation has led to an increase in the number of major booking channels from initial sites such as Airbnb and HomeAway/VRBO to many other travel sites such as Booking.com and Expedia.com offering and promoting vacation rentals.
We predict that the number of travellers that are comfortable and booking online will keep increasing. This will lead to increased bookings not just for city stays but more widely also in holiday and remoter locations.
Please contact us if you have a property or holiday rental you wish to rent and want information on rental and short let management.