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Short-term Let Growth Impacts Buy-to-Let Mortgages

The short-term let market in the UK has seen a 12% increase in bookings, impacting buy-to-let mortgages for landlords and investors.

By David Sampson
30 June 2026
3 min read
UK buy to let mortgage article image for Short-term Let Growth Impacts Buy-to-Let Mortgages

TL;DR

  • The short-term let market saw a 12% increase in bookings, affecting landlords and investors as demand for rental properties rises.
  • this trend may influence buy-to-let mortgage strategies.

Written by David Sampson for Mortgage118. Last updated 15 July 2026. Reviewed against our editorial standards. Editorial standards. Mortgage118 is a directory — not FCA-authorised and not a mortgage adviser.

The short-term let market in the UK has experienced significant growth, with bookings rising by nearly 12% in the past year. This surge, driven by increased traveller interest in Airbnb-style accommodations, could have notable implications for buy-to-let mortgages and landlords.

What are the latest statistics on short-term let bookings?

According to data from the Office for National Statistics, travellers booked 101 million nights in short-term rentals across the UK in 2025, up from 91 million in 2024. This growth varied by region, with Northern Ireland seeing a 10.8% increase, Scotland at 10.9%, and England at 11.1%. Notably, Wales experienced the highest rise at 17.4%, with guest nights increasing from 6,282,250 in 2024 to 7,374,780 in 2025.

How do short-term lets impact buy-to-let mortgages?

The rise in short-term let bookings suggests a growing demand for holiday rentals, which could benefit landlords and investors in the buy-to-let mortgage sector. As more travellers opt for short-term accommodations, property owners may find it easier to secure tenants and increase rental income. However, this trend also highlights the concentration of bookings in a few local authorities, with nearly a quarter of all guest nights occurring in just nine areas. Landlords should consider these hotspots when evaluating potential investments.

Which regions saw the most significant growth?

All regions reported an increase in guest nights booked between January and December 2025 compared to the previous year. The North East led the way with a remarkable 22.2% increase, raising its total from 2,253,220 to 2,753,800 guest nights. Despite having the highest number of guest nights overall, London recorded the smallest growth at 6.3%, moving from 20,270,590 to 21,557,480 guest nights.

What does this mean for landlords and investors?

Landlords looking to capitalise on the growing short-term let market should ensure their properties meet the demands of modern travellers. This includes offering amenities that appeal to guests, such as high-speed internet and flexible check-in options. Additionally, understanding local regulations regarding short-term rentals is important, as compliance can impact profitability. Investors may also want to explore buy-to-let mortgage rates to assess financing options for expanding their portfolios.

Frequently asked questions

What factors contribute to the growth of short-term lets?

The growth of short-term lets can be attributed to changing travel preferences, with more people seeking unique and flexible accommodation options. Economic factors, such as increased disposable income and the rise of remote work, also play a role.

How can I find the best buy-to-let mortgage for short-term lets?

To find the best buy-to-let mortgage for short-term lets, consider using a BTL affordability calculator to evaluate your financial situation. Additionally, consulting with a mortgage broker can help you navigate the options available based on your investment goals.

About David Sampson

David Sampson writes about the UK mortgage market for Mortgage118, covering specialist lending, market trends, and practical advice for borrowers. All content is reviewed for accuracy against FCA guidelines and current market data.

Short-term Let Growth Impacts Buy-to-Let Mortgages | Mortgage118