UK STR demand data show later bookings and shorter stays

UK: Figures from Key Data’s UK Spring 2026 Index Report show a relatively stable short-term rental market, but also one that increasingly depends on late bookings.

Higher rates have balanced out lower occupancy to produce a -0.04 per cent month-over-month demand change in February. That trend is expected to continue during the spring months. The data shows that demand is not falling, just coming later.

The report points to a slight drop in demand in February, meaning the market is in moderation rather than downturn. Demand remained between 0 and 0.2 per cent for most of 2025, the steadiest year since 2023.

Year-over-year, January demand grew by 3 per cent while February demand fell by the same number. March looks the same as last year, but bookings are predicted to drop by 5 per cent in April compared to 2025.

In addition, booking windows are contracting modestly. Key Data’s figures show spring lead times are down between 1 and 4 per cent. Booking length is contracting too. Between April and June, average stay length is predicted to fall 2 to 4 per cent from 2025. 

Despite cooling advance demand, rates continue to rise. Average daily rates (ADR) in January and February grew by 2 per cent year-over-year. March’s ADR is predicted to surge by 7 per cent, with April following at 2 per cent and May and June both predicted at 5 per cent.

Ultimately, it is increasingly important for operators to capitalise on later bookings to retain performance.

“Demand hasn’t disappeared, it’s just arriving later,” KeyData development VP Sally Henry said. “Travellers are booking closer to arrival and taking shorter stays, which is changing how performance should be interpreted.

She continued: “What’s notable is that operators aren’t reacting by lowering prices. Instead, they’re holding rates, signalling confidence that demand will come. The focus now shifts to capturing that demand in a much shorter window.”

Highlights:

• Key Data’s UK Spring 2026 Index Report shows short-term rental demand remaining relatively stable but increasingly reliant on later bookings.
• The report indicates the market is in moderation rather than downturn, with demand remaining between 0 and 0.2 per cent for most of 2025, the steadiest year since the volatile swings of 2023.
• Year-over-year demand grew 3 per cent in January but fell 3 per cent in February, with April 2026 bookings predicted to drop 5 per cent compared to 2025.
• Booking windows are contracting modestly with spring lead times down 1 to 4 per cent, and average stay length between April and June is forecast to fall 2 to 4 per cent from 2025.
• Despite cooling advance demand, average daily rates are rising: January and February grew 2 per cent year-over-year, March is predicted to surge 7 per cent, with May and June both forecast at 5 per cent.