Holiday lettings industry worth £4.35bn a year

A report by the London School of Economics has put the annual value of the UK’s holiday rental industry at £4.35bn a year.

It also says that the industry has created over 95,000 jobs nationwide.

The report, produced in conjunction with a firm called HomeAway.Inc, says the self-catering holiday rental industry contributes £100m in tax and generates gross income for property owners of £950m.

According to the report, 36% of holiday rental owners are likely to buy an additional rental home in the next five years.

Kath Scanlon, research fellow at the LSE and one of the authors, said: “This report suggests that the holiday rental industry contributes to the UK economy by increasing tourism income and creating jobs. These effects are felt in regions across the country.

“Holiday rental visitors stay longer at their destinations and therefore spend more – in fact, many visit rural or seaside areas specifically to stay in attractive holiday rental properties. This has helped areas like Cornwall where tourism has pumped new pounds into previously struggling locales.

“Most holiday rental owners support other local businesses. Our survey found that over 90% of rental hosts across the country highlight local community offerings when asked for recommendations by their guests.

“Support is also in the form of employment, with over three-quarters of owners employing staff to assist with property maintenance.

“Nationally, owners spend an average of about £1,600 per year per property on hiring employees.”