The 2025 UK Budget holiday lets landscape is overwhelmingly positive, offering a welcome boost to owners during a period when many other sectors face higher taxes and reduced allowances. The hospitality and holiday-letting market — especially premium homes across Devon and the South Coast — stands out as one of the key beneficiaries of these government measures.
For holiday-let owners, the Budget creates a year of stability, opportunity and strong income potential.
1. Continued Support Through Business Rates Relief
One of the most valuable measures for the 2025 UK Budget holiday lets sector is the continuation of business-rates relief for hospitality and tourism.
This policy ensures manageable operating costs for owners of premium or large properties such as boutique cottages, manor houses, waterside homes and multi-acre estates — all of which rely on controlled running costs to maintain profitability.
2. Stabilised and Reduced Energy Bills
Energy remains one of the biggest ongoing expenses for holiday-let properties.
The 2025 Budget delivers meaningful support through a £150 reduction in household energy bills, complemented by long-term plans to stabilise energy prices. This is particularly impactful for holiday lets with energy-intensive amenities, such as hot tubs, pools, saunas and extensive landscaped grounds.
3. A Stronger Domestic Tourism Market
The 2025 UK Budget circumstances are expected to strengthen the staycation market significantly.
With higher personal taxes, reduced ISA and pension incentives and a strong pound increasing the cost of overseas travel, more families are likely to choose UK-based holidays. This means increased demand for premium holiday lets — especially multi-generational homes along the South Coast and in Devon.
4. Incentives for Renovation & Energy Efficiency
The Budget also introduces measures to support renovation and energy-efficiency upgrades.
For holiday-let owners, this means an ideal opportunity to enhance guest experience, modernise interiors and command higher nightly rates without the full financial burden. These incentives allow owners to reinvest in their properties while improving long-term sustainability and appeal.
5. Holiday Lets Outperform Savings & Investments
With taxes increasing on savings, dividends and investment returns, holiday-let income becomes a more attractive long-term investment strategy.
For many investors, the 2025 UK Budget holiday lets environment positions furnished holiday properties as high-yield, tax-efficient assets with strong year-round demand.
6. More Demand for Large-Family Holiday Homes
The removal of the two-child benefit cap is set to increase disposable income for larger families.
This demographic is a key driver of demand for spacious holiday homes sleeping 8–20 guests — a niche in which Fresh Escapes properties already perform exceptionally well.
A Strong Year Ahead for UK Holiday-Let Owners
Overall, the 2025 UK Budget holiday lets outlook is highly encouraging. Increased demand, reduced operational pressures and new incentives create a supportive environment for owners.
For those with premium coastal or countryside homes, 2025 is shaping up to be a year of opportunity, growth and impressive booking potential.
