The report notes a potential longer-term risk: some owners may be deferring property investment rather than eliminating unnecessary spending, which could affect asset standards over time.
Thirty-six percent of brokers said they were seeing more experienced and professional investors entering the market. Among respondents, limited company ownership is now commonplace: 48% of brokers said between 26% and 50% of their holiday let clients use a limited company structure, and 44% said between 51% and 75% of their clients do so.
Investors are also prioritising steady income over short-term capital gains, with 16% citing long-term income as a key driver of current strategy and 12% reporting lower appetite for leveraged borrowing than previously.
Brokers identified income assessments based on short-term rental performance and easier switching between holiday let and assured shorthold tenancy classifications as their top priorities from lenders, each cited by 16% of respondents. More realistic affordability assessments and faster underwriting were each mentioned by 12%.
According to the report, 30% of investors said they intend to purchase another holiday let within the next 12 months, and 25% plan to expand their existing portfolio. Sixty-one percent intend to maintain their current portfolio size, while 3% said they plan to exit the market.