UK short-term rental rates rose in every region during the third quarter of 2026, according to KeyData’s UK Autumn Index, which shows revenue holding close to last year’s level even as occupancy softened.
Looking ahead, December is the standout month of the final quarter, with occupancy, rates and revenue per available rental (RevPAR) all pacing ahead of last year.
Rates rise in every UK region
Average daily rate (ADR) grew year on year in all three months of the quarter, rising 4% in July to £189, 2% in August to £203 and 4% in September to £140. Growth reached every region in the Index, from 2% in North East and North West England to 6% in Scotland.
Higher rates offset softer demand
Occupancy softened as the quarter went on, falling 4% in August and 5% in September after a flat July. Higher short-term rental rates absorbed most of the decline and kept RevPAR within 2% of last year in both months.
Booking activity stayed slightly below last year at the end of the quarter, although the gap narrowed in September, and market-wide revenue finished close to last year’s level. Both measures have also moved within a much narrower range through 2026 than in 2024 and early 2025, which suggests a more stable, if softer, booking environment.
Mid Wales the only region to grow occupancy
Mid Wales was the only region to record occupancy growth in Q3, up 1%. Combined with a 2% rise in ADR, that delivered 3% RevPAR growth. South East England matched the RevPAR growth on flat occupancy and a 3% rate increase, while Scotland reached the same result despite a 3% fall in occupancy, helped by the strongest ADR growth in the UK at 6%.
North East England came under the most pressure, with occupancy down 7% and RevPAR down 6%. England overall finished the quarter flat on RevPAR, as a 3% rise in ADR offset a 3% fall in occupancy.
Short-term rentals outperform hotels on RevPAR
KeyData’s hotel comparison shows short-term rental RevPAR proving more resilient than hotels over the same period. UK hotel RevPAR fell 8% year on year in Q3, while short-term rental RevPAR was flat in England, up 3% in Scotland and up 2% in Wales. The gap was widest in Wales, where hotel RevPAR fell 28% after a 27% drop in calendar occupancy.
Direct bookings still bring the highest-value guests
Direct bookings accounted for 57% of UK guest check-ins in Q3 2026, down from 62% in 2025 and 69% in 2024. Over the same two years, Airbnb’s share rose from 13% to 19% and Booking.com’s from 16% to 23%. Direct guests still generated 68% of revenue, well above their share of check-ins. Booking.com showed the largest gap between volume and value among the major channels, with 23% of check-ins but 15% of revenue.
December leads the Q4 outlook
On-the-books data shows occupancy pacing 6% behind last year for both October and November, while December is 2% ahead. ADR is pacing higher across all three months, up 4% in October, 3% in November and 5% in December, when it reaches £216. RevPAR is 2% behind in October and 3% behind in November, but 6% ahead in December.
Stays for October, November and December are booking slightly further in advance than last year, which gives operators more forward visibility and time to adjust pricing and stay rules. Average length of stay is also pacing 3% shorter in both November and December.
“Q3 showed UK operators holding their nerve on price,” said Sally Henry, vice president of market intelligence and insights at KeyData.
“Rates rose in every region we track, and in most markets that was enough to keep RevPAR close to last year even with fewer nights sold. The challenge now is October and November, with occupancy pacing behind last year.
"Operators will need to watch booking pace closely and fill gaps without sacrificing the rate gains that have helped protect revenue. December is already ahead on occupancy, rate and revenue, giving operators a more encouraging outlook for the festive period.”
