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"Holidays are officially on hold ahead of the Budget" say domestic holiday let firms

ended 10. November 2025

WITH the Budget approaching and Brits worried about how their finances will be hit, domestic holiday let firms have reported a noticeable softening in booking volumes compared to previous years, with the higher end being hit especially hard. One owner of a Devon-based holiday lettings business said there is a “clear slowdown” in bookings while another blamed the “daily negative mood music from the government regarding tax, debt and the economy”.

Kate Allen, Owner at Kingsbridge-based Finest Stays, in Devon, said: “Holidays are officially on hold ahead of the Budget. After months of exceptionally strong demand, with bookings up 50% year-on-year for most of 2025, we are now seeing volumes revert to last year’s levels, signalling a clear slowdown.

"October and November to date have underperformed sharply against the momentum we’ve seen during the rest of the year, with holiday hesitation being fuelled by ongoing uncertainty around the Autumn Budget.

“The lack of clarity and prolonged speculation around fiscal changes have created a negative financial headwind for households and holidaymakers alike. In response, we’ve already introduced a £50 deposit initiative to give customers more confidence to book now rather than wait.”

William Matthews, Managing Director at Menai Bridge-based Oyster Holiday Cottages, on Anglesey, said the most expensive lets in particular are struggling: “We have had a very strong 2025, but our November and December bookings have slowed down significantly. What's worrying is our 5-star houses that we know will always book are struggling to fill their weeks.

"This impacts us and all the countless businesses that rely on the short-term holiday rental market. We hope this is just a blip ahead of the Budget, and some confidence is put back into consumer spending.”

In the East of England, things are much the same. Timothy Cook, Co-Founder at Suffolk-based Curious Retreats, which offers luxury holiday lets around the county, said higher end properties are being hit hardest: "Larger properties in the portfolio that have a 6-month plus lead time have been very slow moving. We would be expecting to see February half term and Easter starting to take shape but this has so far eluded us.

"We hear much about conservatism among Brits leading into the November Budget, with creativity around finding ways of capturing this business such as discounted deposits the theme right now."

Short Term Rental and UK holiday home expert, Chris Blakesley Grimes, said 2025 has been a strong year overall for UK staycations, as they are often cheaper than travelling overseas, but that recent weeks have been challenging: “While the last quarter of any year is slower due to weather and Christmas, these past four weeks have been a stark period with bookings stalling and revenues slowing dramatically.”

He added the pain is felt more widely by local communities: "As consumers delay their holiday decisions, the impact on the domestic holiday sector, in the broader sense, deepens, with local businesses struggling to plan ahead.

"Tourism is at the heart of so many communities and thus they are facing deep uncertainty. It all comes down to the daily negative mood music from the government regarding tax, debt and the economy. Consumers are at a total loss."

Arthur Shipton, Managing Director at Deal-based Keepers Cottages, said he has had a record year in Kent but that November has slowed.

He continued: “The uncertainty around the Budget is weighing on both guests and owners. The average stay is down slightly to 5.2 nights, still above the Kent average, but it’s clear households are watching their discretionary spend more closely than ever.”

But Leanne Hemingway, Owner at Dorset Cottage Holidays, remains hopeful for the months ahead: “We’ve seen firsthand how the changing economic landscape is reshaping the way people plan their getaways. While rising costs have prompted many families to think twice before booking, we’re also witnessing a growing appetite for value-driven travel – where quality, authenticity and experience matter more than ever.

"2025 was an exceptional year for bookings with a 37% increase overall building on a fantastic 2024. While we experienced a slight slowdown in October, it remained one of our highest grossing months of the year. 

"Encouragingly, we’ve already seen a resurgence in bookings during the first week of November, leaving us cautiously optimistic about the months ahead.”

8 responses from the Newspage community

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Kate Allen
Owner at Finest Stays
Holidays are officially on hold ahead of the Budget. After months of exceptionally strong demand, with bookings up 50% year-on-year for most of 2025, we are now seeing volumes revert to last year’s levels, signalling a clear slowdown. October and November to date have underperformed sharply against the momentum we’ve seen during the rest of the year, with holiday hesitation being fuelled by ongoing uncertainty around the Autumn Budget. In response, we’ve already introduced a £50 deposit initiative to give customers more confidence to book now rather than wait. The lack of clarity and prolonged speculation around fiscal changes have created a negative financial headwind for households and holidaymakers alike. With only two pay packets left before Christmas, consumer caution is understandable, but the wider impact on domestic tourism is becoming impossible to ignore. Merry Christmas indeed.
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Chris Blakesley Grimes
Short Term Rental and UK holiday home Experts at Chris Blakesley Grimes
In my role, I regularly assess the weekly performance of holiday home agencies across England. 2025 has been a strong year in every metric. Ironically, this is a consequence of the uncertainty that the consumer has faced - holidays remain an important "treat", so when we have less disposable spend, UK "staycations" generally benefit, as consumers choose to spend less by staying in the UK. While the last quarter of any year is slower due to weather and Christmas, these past four weeks have been a stark period with bookings stalling and revenues slowing dramatically. As consumers delay their holiday decisions, the impact on the domestic holiday sector, in the broader sense, deepens, with local businesses struggling to plan ahead. Tourism is at the heart of so many communities and thus they are facing deep uncertainty. It all comes down to the daily "negative mood music" from the government regarding tax, debt and the economy. Consumers are at a total loss.
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Timothy Cook
Co-Founder at Curious Retreats
We have seen a sizeable slowdown in Suffolk bookings since the October half term weeks. Leading into it, business had been very strong, with record numbers this year showing around 50% year on year growth. The start of November has seen some of the lows of October being offset with a decent start to the month. Interestingly, a good chunk of these bookings have had a very low lead time indicating a last minute getaway at a number of smaller properties within the portfolio. Larger properties in the portfolio that have a 6-month plus lead time have been very slow moving. We would be expecting to see February half term and Easter starting to take shape but this has so far eluded us. We hear much about conservatism among Brits leading into the November Budget, with creativity around finding ways of capturing this business such as discounted deposits the theme right now.
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Leanne Hemingway
Owner at Dorset Cottage Holidays
We’ve seen firsthand how the changing economic landscape is reshaping the way people plan their getaways. While rising costs have prompted many families to think twice before booking, we’re also witnessing a growing appetite for value-driven travel – where quality, authenticity and experience matter more than ever. 2025 was an exceptional year for bookings with a 37% increase overall building on a fantastic 2024. While we experienced a slight slowdown in October, it remained one of our highest grossing months of the year. Encouragingly, we’ve already seen a resurgence in bookings during the first week of November, leaving us cautiously optimistic about the months ahead.
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William Matthews
Managing Director at Oyster Holiday Cottages
We have had a very strong 2025, but our November and December bookings have slowed down significantly. What's worrying is our 5* houses that we know will always book are struggling to fill their weeks. This impacts us and all the countless businesses that rely on the short-term holiday rental market. We hope this is just a blip ahead of the Budget, and some confidence is put back into consumer spending.
Star Quote
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Arthur Shipton
Managing Director at Keepers Cottages
We’ve had a record year in Kent, with booking volumes up 57% on 2025, but there’s no doubt November has slowed. The uncertainty around the Budget is weighing on both guests and owners. Many second-home owners who are thinking of buying are waiting to see what’s announced before buying or investing, and some are reluctantly letting their homes to offset rising council tax and mortgage costs. Being just over an hour from London, we’re seeing booking windows shorten further as people delay decisions. The average stay is down slightly to 5.2 nights, still above the Kent average, but it’s clear households are watching their discretionary spend more closely than ever.
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Kate Underwood
Founder & Chief People Strategist at Kate Underwood HR and Training
Confidence books holidays. This Government is bleeding it dry. Across my clients I’m seeing the same thing: fewer week-long breaks, more two-nighters in the UK, last minute bookings and a spike in carry-over requests. This isn’t just the cost of living. It’s the Budget circus and constant rule changes. Every hint of higher taxes or new hoops and people sit on cash and sit on leave. Employers get rota chaos, clumped absences and tired teams through Q4. If ministers want Devon cottages full and teams healthy, stop raiding take-home pay, cut the red tape and give SMEs a stable runway. Certainty sells breaks. Uncertainty cancels them.
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Scott Gallacher
Director at Rowley Turton
As a small business owner, I’ve already been hit by the employer NI tax raid and higher corporation tax, and now it seems I’m facing the prospect of paying even more with the proposed changes to salary sacrifice in the Budget. We also have some home improvements that need to be done, but with the continued rise in the cost of materials and tradespeople, I’m now considering putting my planned January birthday break in Dublin on hold — at least until I know how bad the Budget might be for me and my clients. From my perspective as a financial adviser, there’s definitely a sense of uncertainty out there — people are becoming more cautious about discretionary spending until they know what the Chancellor has in store.