A new report from the Government’s Office for National Statistics (ONS) reveals that bookings for UK holiday lets have soared. Demand for holiday lets from the likes of Airbnb, Booking.com and the Expedia group meant that, last year, holidaymakers booked 90.1 million guest nights in short-term UK lets. The four most popular areas were Westminster (3.9 million guest nights), Cornwall (3.4 million), Edinburgh (3 million) and Highlands (2.6 million).

Unsurprisingly, with nearly 12.8 million bookings, August was the most popular month for guest nights spent in holiday let accommodation. In all, there were 12,788,560 guest nights booked in August 2024, up from 11,146,260 in August 2023.

Now a leading travel expert from Universities.com says that, while this may be good news for Britain’s holiday let owners, the surge in demand is creating problems in some areas.

Lily Smith, from UniversityRooms.com, says: ‘The rise in the number of holiday lets in areas of London and Edinburgh has an impact on the amount of housing stock available for sale or long-term rent to local people. That has led to radical new measures being introduced in Edinburgh to try and cap the number of properties being sold for use as holiday let accommodation.

‘Additionally, the surging demand for accommodation in some areas of the UK is leaving many potential visitors disappointed as properties become fully booked earlier and earlier.

‘Looking at two of the four most popular areas, Westminster in London had the highest number of guest nights (3,901,890 or 4.3% of the UK total) in 2024. It had a resident population of 211,508 in mid-2023. Last year, the median house sale price was 18 times the area’s yearly average earnings. Therefore, it’s unsurprising that the rising numbers of holiday properties are increasingly unpopular with locals.

‘Similarly, last year, the City of Edinburgh had the third-highest number of guest nights in the UK, at 3,016,130 (3.3% of the UK total). This amounted to 26.5% of all guest nights in Scotland. Edinburgh has a resident population of 523,250. In 2024, the median house price in Scotland’s capital was £270,000. So great are fears that too much housing stock is being lost to holiday lets that the city council is planning a 5% visitor tourist tax, to be applied to the cost of overnight accommodation.

‘In both these areas, considering the demand for rooms, there is an accommodation “release valve” for August that still remains partially untapped. Many university rooms stand empty in August, when students are away on their long summer holidays. Fortunately, hundreds of these rooms are now available to book for holiday accommodation and you don’t have to be a student to stay in them. That means holidaymakers can stay in some of the most in-demand areas of the UK without feeling guilty they are contributing to an escalating housing crisis.

‘Better still, campuses are often sited centrally in cities and towns. For example, for visitors wanting to stay in or near Westminster, Goldsmid House is situated in the heart of central London, close to Victoria Station. It’s just a short walk away from Green Park, Buckingham Palace and Westminster Cathedral. Goldsmid House provides value for money accommodation in single ensuite rooms from late June until early September. This August, rooms are available from £84 a night.

‘Just 2 miles away, Astor College is a newly refurbished hall, ideally located in Fitzrovia’s Charlotte Street in central London. Famous attractions in the West End, Soho, Oxford Street and Hyde Park are nearby. Astor College residence has 284 bedrooms, with a mix of single rooms, single ensuite rooms, twin rooms and duplex ensuite rooms. Rooms are available from £94 a night this August.

‘Fortunately for visitors struggling to find accommodation in Edinburgh, there is also plenty of student accommodation available, even during the Fringe festival period. For example, Destiny Student, Holyrood, is located in the centre of Edinburgh’s busy cultural quarter, just a few minutes’ walk from The Royal Mile, Holyrood Palace and Arthur’s Seat. Destiny Student Holyrood is perfect for solo travellers, couples, families and small or large groups. Double ensuite rooms are currently available from £142.26 a night for this August.

‘Similarly, Westfield is a modern residence in the heart of Edinburgh, newly built in 2022 and ideally located for exploring this historic and vibrant city. Just a short distance from top attractions like Arthur’s Seat and Edinburgh Castle, it offers a convenient and comfortable base. Guests can choose from stylish private studios or shared apartments. Ensuite rooms are available from £99 a night this August.

‘With demand for holiday let accommodation increasing every year, it’s good to know there is an alternative that is not only readily available for August but would otherwise be standing empty during the peak holiday season. For more information on staying in London, see https://www.universityrooms.com/en-GB/city/london/home/ and for Edinburgh accommodation, check out https://www.universityrooms.com/en-GB/city/edinburgh/home/