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UK: December is on track to be one of the strongest months of 2025 for UK short-term rentals, with revenue per available rental (RevPAR) currently pacing 7 per cent higher year on year, according to new data from Short-term rental analytics company Key Data.
The findings, published in Key Data’s UK Winter 2025 Index Report, show that the uplift is being driven by a combination of higher occupancy and firmer pricing heading into the holiday period. Occupancy is pacing 5 per cent higher year on year, while average daily rates (ADR) are up 3 per cent.
The report is based on forward-looking data from more than 85,000 direct-sourced short-term rental properties across the UK.
Key Data said strong autumn performance provided momentum heading into winter. In October, RevPAR increased by 8 per cent year on year, followed by a 5 per cent rise in November, supported by consistent ADR growth of between 4 and 7 per cent.
Earlier in the year, growth was more moderate. During Q3, paid occupancy rose 1 per cent year on year, ADR increased 3 per cent, and RevPAR was up 4 per cent, with England and Scotland leading national performance. The stronger results seen in autumn and December suggest market conditions improved as the year progressed.
The report also highlights continued shifts in traveller behaviour, including shorter booking windows, slightly shorter stays and increased reliance on online travel agencies (OTAs). In Q3, the share of reservations made through direct channels fell from 53 per cent to 45 per cent year on year, while both Airbnb and Booking.com increased their share.
Booking.com saw its reservation share rise from 17 per cent to 22 per cent, while its share of revenue increased from 11 per cent to 15 per cent, indicating growing influence on both booking volume and guest spend.
Key Data said shorter stays and later booking behaviour remain defining trends. Average stay lengths declined slightly across September, October and November, while booking windows fell by between 4 and 7 per cent year on year, reinforcing the shift towards more spontaneous trip planning.
Sally Henry, vice president of business development, EMEA at Key Data, said:
“Occupancy, ADR and RevPAR are all tracking ahead of last year heading into the holidays,” she said. “At the same time, guests are booking later, staying for shorter periods and relying more heavily on OTAs, which places greater importance on pricing strategy, channel diversification and visibility across platforms.”
Highlights:
UK RevPAR is pacing 7 per cent higher year on year in December for UK markets, driven by higher occupancy and firmer pricing.
Occupancy is tracking 5 per cent higher, while ADR is up 3 per cent heading into the holiday period.
October and November delivered strong momentum, with RevPAR up 8 per cent and 5 per cent respectively.
Direct booking share fell to 45 per cent in Q3, as Airbnb and Booking.com gained market share.
Shorter stays and later booking behaviour remain defining trends.
