Cumberland Holiday Let Index: Nearly half of holiday let owners report higher profits despite loss of tax benefits
16 September 2026
Nearly half of holiday let owners have reported higher profits since the abolition of Furnished Holiday Let (FHL) tax advantages, according to new research from Cumberland Building Society.
The Cumberland’s inaugural Holiday Let Index found that 48% of owners surveyed said their profitability had increased since the tax changes, while a further 19% reported broadly unchanged profits.
The findings show how owners have adapted their approach following the abolition of the previous FHL tax regime, with 47% increasing nightly rental rates and 46% focusing on increasing occupancy.
These adjustments come alongside changes in guest behaviour. Half of owners (50%) reported more last-minute bookings, while 39% have seen shorter stays and the same proportion have noticed greater price sensitivity among guests.
The Index also found that 86% of owners are achieving gross rental yields of 5% or more. Some 44% reported yields between 5% and 6%, while 34% are achieving between 7% and 8%. A further 8% reported yields between 9% and 10%.
Looking ahead, 61% of owners are positive about future yields, while 30% intend to purchase another holiday let within the next 12 months and 25% plan to expand their portfolio.
For the purposes of the research, holiday let owners comprise private landlords with at least one mortgaged holiday let and homeowners who own their own home alongside at least one mortgaged holiday let.
The Cumberland’s Holiday Let Index was coordinated by Pegasus Insight through a quantitative online survey of 125 respondents, comprising 25 mortgage brokers, 50 private landlords and 50 homeowners from across the UK. The survey was carried out in May 2026.
Grant Seaton, Head of Intermediary Lending at Cumberland Building Society, said:
“What I take from these findings is that resilience in the holiday let market is not passive. Owners are having to work for their returns. They are looking much more closely at pricing, occupancy, finance costs and how each property is run, rather than assuming demand alone will produce a good result.
“That is an important distinction because a strong gross yield does not automatically mean a strong business. Two properties producing the same rental yield can have very different outcomes once seasonality, management fees, maintenance, borrowing costs and periods without bookings are taken into account.
“The owners who perform well over the longer term are therefore likely to be those who understand the numbers behind their property and are prepared to adjust when conditions change. For brokers, that makes the conversation much broader than simply asking what rent a property might achieve. It means understanding how sustainable that income is, what costs sit behind it and whether the borrower has enough room in their plans for periods when performance is weaker.”
To download a copy of The Cumberland’s inaugural Holiday Let Index, visit: https://www.cumberland.co.uk/news/holiday-let-index-summer-2026
