Amanda Stecker, who runs both Unique Cotswold Cottages and Holiday Letology, a holiday rental investor advisory service, said: “My clients are finding it harder to achieve the kind of income level they achieved at this time last year and they have to keep their nerves that bookings will eventually come in.”
Guests book later and hope for last-minute deals due to the cost of living, Ms Stecker added.
In some areas, there is an oversupply of housing, she said. “More and more investors are turning to short-term rentals to take advantage of the tax benefits that buy-to-lets no longer offer.”
James Maughan of Group Accommodation, a website for major self-catering accommodation, said: “Last year we saw demand volumes in the UK rise significantly as Covid lockdowns were eased, up 150 per cent compared to pre-Covid.”
Now studies have fallen to just above pre-pandemic levels, he said.
Instead, demand has shifted abroad. Mr Maughan said: “We have seen strong year-over-year growth in traffic to our overseas properties in 2022 compared to 2021.” Searches for homes in Portugal and France rose by 38 percent and 36 percent respectively, he said.