Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Short-Term Lets Rise 11.5% Amid Growing UK Housing Supply Concerns

Guest nights in UK short-term rental accommodation increased by 11.5% in 2025 to 100.9 million, up from 90.5 million the previous year, according to Office for National Statistics data. The rise has intensified concerns about the impact on long-term rental housing supply.

Wales recorded the strongest growth among the home nations, with guest nights up by 17.4%. The North East saw the largest regional increase at 22.2%. Domestic visitors made up 67.2% of all guest nights, while Germany was the only major international market to record growth, at 8.5%. Visits from the US, France, and other Asian markets declined.

Nathan Emerson, chief executive at Propertymark, said the figures highlight concerns about the impact on private rental sector supply. The trade body called for greater parity between the short-term lets sector and the private rented sector, and for local authorities to have access to robust data and appropriate powers to address imbalances where short-term lets are affecting housing supply.

The issue comes as England faces a significant shortfall in housing delivery, placing additional pressure on existing stock. Housing minister Matthew Pennycook said the government is considering what additional powers it might give local authorities to respond to pressures created by short-term lets and second homes. He noted that high concentrations of short-term lets and second homes can affect both availability and affordability for local residents.

Councils already have the ability to charge a council tax premium of up to 100% on second homes. Ministers are also progressing plans for a visitor levy in England that would allow strategic authorities to raise additional funds from overnight stays. Operators of short-term lets will be required to join a mandatory registration scheme under forthcoming reforms.

Industry figures warn that the conversion of residential properties to short-term accommodation may be reducing stock in the private rented sector at a time when rental supply is already constrained in many parts of the country.