UK Short-Term Rental Rates Rise 5% as Occupancy Drops
Average daily rates are pacing ahead of last year for August and September, helping property managers offset a five percent decline in forward occupancy.
The short answer
UK short-term rental operators are increasing average daily rates by up to 5% for August and September. This pricing strategy is helping offset a 5% drop in forward occupancy across the market.
“Operators have maintained pricing discipline into August and September, helping protect revenue even as occupancy tracks below last year.”
The short version
- August ADR reached £218, a 3% year-on-year increase.
- Direct bookings accounted for 58% of reservations in the second quarter.
- South East England achieved a 3% increase in RevPAR during the second quarter.
UK short-term rental operators are pushing average daily rates 5% higher for September and 3% higher for August, offsetting a 5% drop in forward occupancy across both months. According to shorttermrentalz.com, this pricing discipline leaves revenue per available rental pacing just 1% to 2% behind previous levels. [1]
How are late summer rates and occupancy trending across the UK?
Average daily rates for August reached £218, a 3% increase year on year, while September rates hit £146, representing a 5% rise. [1] Shorttermrentalz.com reported that forward occupancy for both months is pacing 5% below last year. [1] These figures, drawn from Key Data’s 2026 UK Summer Index, represent bookings on the books as of 20 July. [1] As a result, occupancy and revenue will increase as further reservations are made closer to arrival dates. [1]
What impact is this having on revenue per available rental?
Higher pricing has insulated operators from the full impact of falling occupancy, leaving RevPAR pacing 2% lower in August and 1% lower in September. [1] This pattern mirrors the second quarter, where ADR increased by 4% in May and 3% in June, keeping RevPAR broadly level with last year despite lower occupancy. [1]
| Month | Average Daily Rate (ADR) | ADR YoY Change | Occupancy YoY Change | RevPAR YoY Change |
|---|---|---|---|---|
| August | £218 | +3% | -5% | -2% |
| September | £146 | +5% | -5% | -1% |
Which regions performed best during the second quarter?
South East England led the market with a 2% increase in occupancy and a 3% rise in RevPAR. [1] Conversely, North West England recorded the largest declines, with occupancy falling by 7% and RevPAR decreasing by 5%. [1] Across most other regions, higher rates helped offset weaker occupancy. [1]
How is the distribution mix changing for property managers?
Direct bookings generated 66% of revenue from 58% of total reservations during the second quarter. [1] However, shorttermrentalz.com highlighted that this represents a decline from a 67% reservation share two years earlier. [1] Airbnb and Booking.com now each account for close to one-fifth of bookings. [1]
How are booking windows shifting ahead of the summer?
The average booking window remains broadly stable, but this hides a growing division between early bookers and last-minute reservations. [1] Sally Henry, vice president of market intelligence and insights at Key Data, noted that property managers need to adapt their pricing, marketing and booking-pace strategies to address both early and last-minute demand. [1] The data reflects anonymised reservation data from more than 92,000 UK short-term rental properties. [1]
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This article was written from the following reporting. Follow the links for the original coverage.
- [1]UK Short-Term Rental Rates Rise 5% as Occupancy Softens— shorttermrentalz.com
Frequently asked
+How much did UK short-term rental rates increase for August and September?
Average daily rates rose by 3% to £218 for August and by 5% to £146 for September, compared to the previous year. [[1]]
+Did forward occupancy increase for UK short-term rentals?
No, forward occupancy for both August and September was tracking 5% below the previous year. [[1]]
+What percentage of reservations came from direct bookings?
Direct bookings accounted for 58% of UK reservations during the second quarter, generating 66% of revenue. [[1]]
+Which UK region saw the highest RevPAR growth in the second quarter?
South East England recorded the strongest performance, with a 3% increase in RevPAR and a 2% rise in occupancy. [[1]]
+How many properties were included in the Key Data index?
The index covered more than 92,000 UK short-term rental properties using anonymised reservation data. [[1]]
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