The UK’s holiday accommodation sector is set to witness substantial growth this year, offering astute property investors a promising opportunity. Research conducted by Stripe Property Group reveals that despite facing setbacks during the pandemic in 2021, resulting in a 24% decline, the sector made an impressive recovery in 2022, registering a remarkable growth rate of 21%.
The resurgence is expected to pave the way for further expansion in 2023, presenting an enticing prospect for potential investors seeking to diversify their property portfolios.
UK’s Holiday Sector Bounces Back
The property market size in the UK’s holiday accommodation sector currently stands at £2.54 billion, representing a significant 38% increase from the £1.8 billion recorded in 2013.
Experts acknowledge that the sector faced challenges during the pandemic with travel restrictions affecting tourism. However, despite the hurdles, the sector has exhibited promising signs of a return to form, setting the stage for continued growth throughout the current year.
While staycations experienced a surge in popularity during the pandemic and continue to attract tourists, the UK holiday accommodation sector had to navigate a turbulent path due to travel restrictions and other pandemic-related challenges.
Consequently, the sector suffered a substantial 24% reduction in 2021, marking only the second annual decrease in the last decade. The market size plummeted from its peak of £2.76 billion in 2020 to less than £2.1 billion in 2021. Nevertheless, the tenacity of the sector was evident as it rebounded by an impressive 21% in 2022, reaching a substantial market size of £2.5 billion.
UK Holiday Accommodation Sector’s 2023 Growth
Despite the challenges posed by the pandemic, the research indicates that the UK’s holiday accommodation sector is projected to maintain its growth trajectory. Estimates suggest that the sector will experience a further expansion of approximately 4% in 2023.
However, while the outlook remains positive, it is important to note that the projected market size of £2.6 billion will still fall approximately 4% below the pre-pandemic peak. Nonetheless, this anticipated growth presents a compelling opportunity for investors seeking to capitalize on the resurgence of the UK’s holiday accommodation sector and its potential for long-term prosperity.
Conclusion
The UK’s holiday accommodation sector has proven its resilience by rebounding from the challenges of the pandemic, demonstrating remarkable growth in 2022 and setting the stage for continued expansion in 2023. With a market size of £2.54 billion, the sector offers savvy investors various opportunities to diversify their portfolios.
Despite the impact of the pandemic, the sector’s anticipated growth in the coming year makes it an attractive prospect for property investors looking to capitalize on the recovery of the UK’s tourism and travel industry.
