The Cumberland Holiday Let Index 2026: A Resilient, Maturing Market

Demand has held firm

Perhaps the most encouraging finding is that demand remains strong across the board.

Cumberland reports that 88% of brokers have seen holiday let mortgage enquiries increase over the past twelve months, with search and product-availability data pointing the same way. That breadth matters: when broker sentiment, mortgage searches and the number of available products all move together, it suggests the demand is genuine and durable rather than a short-lived spike.

It chimes with what we see day to day at Drake. Interest in holiday lets remains healthy, particularly from clients who view them as a long-term income business rather than a quick capital play.

Investors have adapted, not exited

The removal of FHL tax advantages was widely expected to prompt an exodus.

The research suggests the opposite. Rather than selling up, owners have adjusted how they operate, reviewing nightly rates, focusing on occupancy and taking a more commercial approach to running their properties.

Strikingly, 48% of owners report increased profitability since the FHL regime ended, a sign that experienced operators have been able to absorb the change by strengthening performance elsewhere in the business.

This is exactly the kind of measured, business-minded response the sector needed, and it reflects a growing recognition that a well-run holiday let can still deliver strong returns under the new rules.

Yields and confidence remain attractive

Income is still central to the appeal. Cumberland found that 86% of owners achieve gross yields above 5%, with the largest group sitting in the 5–6% band.

Set against parts of the standard buy-to-let market facing sustained tax and regulatory pressure, that remains a compelling proposition, and it helps explain why higher yields are cited by investors as the single biggest reason for choosing holiday lets.

Confidence follows the numbers. Looking ahead, 61% of owners feel positive about future yields and 57% expect capital growth to improve. Just as tellingly, 84% say they are prepared for the forthcoming National Registration Scheme, which suggests operators are treating regulation as something to plan for rather than a reason to leave.

A more professional, specialist market

A clear theme running through the Index is professionalisation.

Brokers report that limited company ownership is now well established, and that investors are more experienced and more considered in how they borrow. Guest behaviour is shifting too, with more last-minute bookings, shorter stays and greater price sensitivity, all of which reward owners who manage their properties actively.

For borrowers, the practical takeaway is that holiday let lending is a specialist field. Cumberland’s research shows brokers increasingly value lenders who assess income on the basis of short-term rental performance rather than applying standard buy-to-let assumptions, and who offer flexibility to switch between holiday let and longer-term letting if circumstances change.

This is precisely the territory where good advice earns its keep.

Where Drake fits in

As a whole-of-market specialist broker, Drake Mortgages arranges holiday let mortgages directly for clients across the UK. We know the lenders who genuinely understand this market, Cumberland foremost among them, and we structure applications so that a property’s real earning potential is properly reflected in the affordability assessment.

The Cumberland Holiday Let Index confirms what we have long believed: holiday lets remain a resilient and rewarding investment for those who approach them thoughtfully and take a long-term view.

With the right lender and the right advice, the opportunities in this market are as real as ever.