Representative ImageUK short-term rentals are experiencing a robust end to 2025, with December's revenue per available rental (RevPAR) tracking 7% higher than the previous year, according to Key Data's UK Winter 2025 Index Report. This growth is attributed to a 5% increase in occupancy and a 3% rise in average daily rates (ADR), reflecting firm demand and pricing as the holiday season approaches.
The report, which analyses real-time data from over 1.2 million short-term rental properties across the UK, highlights a solid autumn performance that set the stage for December's success. October saw an 8% year-on-year increase in RevPAR, whilst November recorded a 5% rise, supported by consistent ADR growth between 4% and 7%.
Key Data's findings also reveal evolving traveller behaviours, with shorter booking windows and stays becoming more prevalent. The share of direct bookings fell from 53% to 45% year-on-year in Q3, as platforms like Airbnb and Booking.com gained traction. Booking.com, in particular, increased its reservation share from 17% to 22% and its revenue share from 11% to 15%.
Sally Henry, Vice President of Business Development, EMEA, noted, “December’s strong pacing is a clear indication that demand remains present, even in a year defined by mixed signals and shifting traveller behaviour.”
As the year concludes, these trends suggest that operators must adapt to changing guest preferences and leverage pricing strategies and channel diversification to maintain visibility and profitability.
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