THE PROPERTY FILTER TAKE
88% of the 25 mortgage brokers surveyed for Cumberland Building Society's Holiday Let Index said holiday let mortgage enquiries had risen over the past 12 months.
That is a share of brokers, not an 88% jump in volume, and 36% of the brokers reported more experienced or professional landlords looking at holiday lets.
You may wish to review your nightly rate and occupancy against current guest demand before more listings arrive in your area.
Holiday let mortgage enquiries have gone up for 88% of the mortgage brokers surveyed by Cumberland Building Society, despite the tax and regulatory changes hitting short-term let investors. That figure is the share of brokers reporting an increase over the past 12 months, not an 88% rise in the number of enquiries (Cumberland Holiday Let Index, Summer 2026). The lender says the index was published on 12 August 2026, and Mortgage Strategy and The Intermediary reported the broker findings on 8 September 2026 (Mortgage Strategy).
What does the 88% figure actually measure?
The sample is small. Pegasus Insight, working with Fineline Research, ran a 10-minute online survey in May 2026 for the lender. It covered 25 mortgage brokers, each of whom had arranged six or more holiday let mortgages in the previous 12 months (Cumberland Holiday Let Index). So 88% means 22 of those 25 brokers.
The index splits the answers further. 32% of brokers said enquiries had increased significantly and 56% slightly. Another 4% saw no change and 8% reported a slight decrease (Cumberland Holiday Let Index).
The same index adds mortgage search data from Twenty7tec, a mortgage sourcing platform used by advisers. Holiday let searches reached 3,471 in March 2026, and 3,553 holiday let products were available in May 2026 (Cumberland Holiday Let Index).
Why are investors still asking about holiday lets?
Yield came first. 32% of brokers named higher yields than standard buy-to-let (BTL, a property let on a standard residential tenancy) as the main reason clients are entering the sector. Regulatory changes hitting the BTL market came second at 16%, with portfolio diversification and short-term rental demand growth next (Cumberland Holiday Let Index). If you are comparing the two models, our guide to property investment strategies sets out how they differ.
The buyer is changing too. 36% of brokers said they were seeing more experienced or professional landlords, and 24% said clients were more cautious when borrowing. "Brokers are also seeing more experienced and professional landlords considering holiday lets," said Mark Long, founder and managing director of Pegasus Insight (The Intermediary, 8 September 2026).
Brokers also want lenders to judge holiday lets differently. 16% asked for income assessments based on short-term rental performance rather than standard BTL assumptions (Cumberland Holiday Let Index). Our negotiation and finance hub covers how to approach lenders and brokers on specialist cases.
What could slow demand down?
Brokers named the loss of the furnished holiday lettings (FHL) tax advantages as the biggest deterrent for new investors. Council tax rises and second home premiums followed (Cumberland Holiday Let Index). The government abolished the FHL regime on 6 April 2025, and income from short-term holiday accommodation is now taxed under the usual residential landlord rules (GOV.UK guidance for England). For Corporation Tax, the change applied from 1 April 2025 (HMRC policy paper).
That matters for any borrower. Loan interest relief on a former FHL is now restricted to the basic rate of Income Tax, as for other landlords (HMRC policy paper). If you are weighing a holiday let purchase, you can test the deal under stressed rates with our free stress test calculator.
Registration is next. A mandatory national registration scheme for short-term lets in England is not yet in force. GOV.UK expects it to begin in March 2027 (page reviewed 2 October 2026).
Where does that leave your occupancy? The index records guest demand moving towards last-minute bookings, shorter stays and greater price sensitivity. We covered those owner findings in our report on holiday let profits after the FHL change. More broker enquiries do not guarantee more guests, so consider pricing your listing on current booking data rather than last season's rates.
Key takeaways
88% of 25 surveyed mortgage brokers said holiday let mortgage enquiries rose over the past 12 months; 32% said significantly.
The figure is a share of brokers from a May 2026 survey, not an 88% increase in enquiry volume.
32% of brokers named higher yields than standard buy-to-let as the main reason clients enter the sector.
36% of brokers report more experienced or professional landlords looking at holiday lets.
England's short-term let registration scheme is expected to begin in March 2027, according to GOV.UK.
Frequently asked questions
Did holiday let mortgage enquiries rise by 88%?
Who was surveyed for the Cumberland Holiday Let Index?
Why are investors still interested in holiday lets?
When did the furnished holiday lettings tax regime end?
Do I need to register a holiday let in England?
