Four key factors will shape the short-term rental sector next year, according to Richard Bond, owner of Finest Retreats. They include regulation, technology, AI vs people and the changing perception of holiday lets, he said.
Bond believes compliance is becoming a local job as regulations vary by area and councils. “The rules for holiday lets now depend on where the property is,” he said.
“In Scotland every short-term let needs a licence, and Edinburgh has charged a 5% visitor levy since July. In Wales, Cardiff is so far the only council to confirm a levy, starting in April 2027. England’s national register launches in March 2027.
“Regulations are changing so quickly and vary so much from one council to the next, that every owner will need to be certain of what applies to their property in their postcode. In 2027, the management companies trusted by owners will be the ones with people living and working in those areas, who know the local rules inside and out,” he said.
On technology, he believes more operators will build their own tech, increasingly harnessing the speed and affordability of AI to build tools in-house. “We’re building out our own tech stack and doing in weeks what used to take months. Next year, off-the-shelf software will still have its place, but the gap between operators who build and operators who only buy will get bigger,” he said.
But while AI will play an important role in efficiency, Bond believes the role of humans will remain essential for success. “As more of the sector automates interactions with owners and guests, the people behind a business will count for more.
“That means someone who answers the phone, someone who can be at the property, and someone who knows the area. Each full-time hire gives us just under 2,000 contracted hours a year of human contact. We’re focused on hiring more people in all the main UK tourism hotspots, so that local knowledge and support are always our strengths.”
Bond also believes that in the new year the role of holiday lets as small businesses in their areas will also be better appreciated in 2027. “Most holiday lets are run by individuals and families. They use local housekeepers, maintenance staff and suppliers, and their guests spend money in local shops, pubs and attractions. We estimate the UK has around 267,600 holiday let housekeepers alone. In 2027, the sector will be recognised as thousands of small businesses, each one a vital part of the local economy.”
This article is taken from Landlord Today