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UK: Average daily rates for short-term rentals are pacing ahead of last year for August and September, although lower forward occupancy is expected to leave revenue per available rental slightly behind 2025 levels, according to Key Data.
Key Data’s 2026 UK Summer Index found that the average daily rate for bookings made by 20 July was three per cent higher year on year for August at £218 and five per cent higher for September at £146.
Forward occupancy was five per cent below last year for both months. The higher rates partly offset the decline, with RevPAR pacing two per cent lower in August and one per cent lower in September.
As the figures represent bookings on the books as of 20 July, rather than final performance, occupancy and revenue may increase as further reservations are made closer to the arrival dates.
The pattern was also evident during the second quarter. ADR increased by four per cent in May and three per cent in June, helping to keep RevPAR broadly level with last year despite lower occupancy.
Regional performance varied during the quarter. South East England was the only region to record occupancy growth, rising by two per cent, and achieved the strongest RevPAR increase at three per cent.
North West England recorded the largest declines, with occupancy falling by seven per cent and RevPAR decreasing by five per cent. Higher rates helped to offset weaker occupancy across most other regions.
Direct bookings remained the largest distribution channel, accounting for 58 per cent of UK reservations during the second quarter and generating 66 per cent of revenue.
However, their share of reservations declined from 67 per cent two years earlier. Airbnb and Booking.com each accounted for close to one-fifth of bookings during the latest quarter.
Sally Henry, vice president of market intelligence and insights at Key Data, said: “Operators have maintained pricing discipline into August and September, helping protect revenue even as occupancy tracks below last year.
“While the average booking window has remained broadly stable, it masks a growing split between guests booking well in advance and those making last-minute decisions.”
Henry said property managers would need to adapt their pricing, marketing and booking-pace strategies to address both early and last-minute demand.
The index covered more than 92,000 UK short-term rental properties and used anonymised reservation data obtained through integrated property management systems.
Highlights
- UK short-term rental ADR was pacing three per cent ahead for August and five per cent ahead for September.
- Forward occupancy was five per cent below last year for both months.
- RevPAR was pacing two per cent lower in August and one per cent lower in September.
- South East England recorded the strongest regional performance during the second quarter.
- Direct channels generated 66 per cent of revenue from 58 per cent of reservations.
