The sector has grown by 38% from £1.8 billion in 2013 to £2.54 billion in 2022, despite a 24% decline in 2021 due to the pandemic. Research from Stripe Property Group says is expected to grow by another 4% in 2023, but still below the pre-pandemic peak of £2.76 billion in 2020.

Opportunity for property investors: The sector offers a chance for investors who want to diversify their portfolio and avoid the traditional paths of residential development or buy-to-let

Summary

1. Growth and Opportunities Ahead: The UK’s holiday accommodation sector is looking promising, and there are opportunities for smart property investors. Even though it faced problems during the pandemic, the sector is set to grow further in 2023.
2. Ups and Downs in Recent Years: The sector faced a major setback in 2021 due to the pandemic, with a decline of 24%. However, it bounced back with a 21% growth rate in 2022.
3. Size and Increase: The market size of this sector now stands at £2.54 billion, which is a big leap from £1.8 billion in 2013. That’s a 38% increase over the past decade!
4. Staycations Helped, But There Was a Hit: While people choosing to vacation within the UK (staycations) have become more popular, the industry was seriously affected by travel restrictions during the pandemic.
5. Investment Opportunities: If you’re thinking of investing in property, this sector is something to consider. There are different ways to invest, not just in traditional residential development. This can help diversify your investment portfolio.
6. Impact of the Pandemic: If it weren’t for the pandemic, growth would have been even more impressive. There was a significant reduction of 24% in the market size in 2021, only the second decrease in the last 10 years.
7. Recovery is Underway: The market bounced back by 21% to £2.5 billion last year, and it’s expected to grow by 4% more. But the projected market size of £2.6 billion will still be about 4% below what it was before the pandemic.