88% of brokers report rising holiday let enquiries, Cumberland research finds

08 September 2026

Demand for holiday let finance continues to grow despite a series of tax and regulatory changes affecting the sector, according to new research carried out by The Cumberland Building Society.

The findings form part of The Cumberland’s inaugural Holiday Let Index, conducted by Pegasus Insight.

The research found that 88% of mortgage brokers have seen an increase in holiday let mortgage enquiries over the past 12 months, with 32% reporting a significant increase. Just 8% reported a decline in enquiries.

The findings suggest that holiday lets continue to attract investor interest despite significant changes to the market over recent years.

Higher yields compared with traditional buy-to-let investments were identified as the leading reason clients are entering the holiday let sector, cited by 32% of brokers. Regulatory changes affecting the traditional buy-to-let market were the second most common driver, highlighted by 16% of respondents.

The research comes at a time when landlords continue to assess the impact of changing tax rules, compliance requirements and wider reforms affecting residential investment property.

The Cumberland’s Holiday Let Index was coordinated by Pegasus Insight, through a quantitative online survey of mortgage brokers, private landlords and holiday let homeowners.

Grant Seaton, Head of Intermediary Lending at Cumberland Building Society, said:

“What’s interesting is that we’re seeing demand increase despite a series of well-publicised tax and regulatory changes affecting property investors. The assumption in some parts of the market has been that these changes would reduce appetite for holiday lets, but the research suggests investors are continuing to assess the opportunities available and the returns that can be achieved.

“We’re also seeing wider changes across the property investment space. As landlords review their options, many are taking a fresh look at holiday lets alongside more traditional buy-to-let investments.

“For brokers, that means having a good understanding of how the sector works, what borrowers are trying to achieve and where specialist support can add value.

“What makes our Holiday Let Index particularly valuable is that it brings together the views of brokers, landlords and holiday let owners to provide a broader picture of the market.

“Through the Index, we’re building a deeper understanding of how the sector is evolving, and we’ll be sharing further findings over the coming months as we continue to track the trends shaping holiday let investment across the UK.”

Mark Long, Founder and Managing Director at Pegasus Insight, added:

“What stands out from the research is that this momentum is not simply coming from people entering property investment for the first time. Brokers are also seeing more experienced and professional landlords considering holiday lets, which could tell us something about how the sector is developing.

“As established landlords reassess their portfolios, holiday lets offer exposure to a different part of the property market, with a different income model to conventional buy-to-let. That does not mean they are right for every investor, but it helps explain why demand can remain strong even against a more challenging tax and regulatory backdrop.

“It will be particularly telling to see whether this continues as further changes affecting the private rented sector take effect. If more experienced landlords do move into holiday lets, we could see the borrower profile change with them, bringing different expectations of brokers, lenders and the finance available.”

To download a copy of The Cumberland’s inaugural Holiday Let Index, visit: https://www.cumberland.co.uk/news/holiday-let-index-summer-2026