How Does Your Somerset Holiday Let Stack Up Against the Market?
Are you maximising the potential of your Somerset property, or is there untapped revenue hiding in the data? Let’s dive into the numbers.
If you own a holiday home in Somerset, you already know the magic of this county. From the rolling Quantock Hills to the Georgian grandeur of Bath, it’s a magnet for visitors. But loving the location is one thing; understanding the hard economics of the short-term rental market is another.
We believe decisions should be driven by data, not guesswork. We’ve reviewed the latest market intelligence, local stats and our own bookings to help you gauge your property’s performance.
The Demand is Huge (and Growing)
First, the good news: the appetite for Somerset staycations is huge and only getting bigger. The wider West of England region saw a healthy recovery exiting the pandemic, welcoming an estimated 26.6 million day visitors in 2022 alone, generating over £1.15 billion for the local economy.
While domestic visitors make up the vast majority of footfall, it's important to recognise the value of longer-staying international guests. Although they made up just 21% of staying visits, they accounted for a massive 40% of all visitor spending.
The Takeaway: If your property isn't marketed on globally accessible platforms to attract both domestic and high-spending international travellers, you are missing a significant slice of the pie!
Benchmarking Your Performance: Occupancy & Rates
How does your property compare to the average? Market data varies slightly depending on who you ask, but the trends are clear.
According to data from AirDNA, the broader Somerset region sees an average occupancy rate of 56% with an Average Daily Rate (ADR) of around £170. Meanwhile, other industry analysts like Airbtics suggest occupancy can sit higher at 62% with a lower £110 day-rate, so there's definite potential for higher average price points if your property is fit to demand them!
If your occupancy is consistently below 50% or your nightly rate is stagnating while your bills rise, it’s time to review your strategy. Dynamic pricing and seasonal marketing are valuable tools to ensure you're charging a premium during peak seasons and maximising occupancy when the seasons slow down.
Business Rates vs. Council Tax
While chasing bookings is key, minimising costs is equally vital. A critical metric for 2025 is the 70-night threshold.
Introduced from April 2023, properties that are actually let for 70 nights (and available for 140) can move from Council Tax to Business Rates. For many Somerset owners, this means qualifying for Small Business Rates Relief and paying significantly less than typical second home council tax premiums.
If you're uuable to secure those 70 nights, you remain liable for Council Tax, which can include hefty premiums for second homes. Low bookings are more than just an opportunity cost, and render dabbling in holiday lets far pricier than diving in head first!
The Pet-Friendly Uplift
In a competitive market, amenities are the differentiator. The single most impactful change you can make? Let the dogs in.
National data indicates that searches for pet-friendly holidays have surged by 60% since 2019. More importantly for your bottom line, properties that welcome pets earn, on average, 18% more revenue and secure more bookings per year than those that don't.
If you are worried about wear and tear, remember: a well-managed deposit scheme and professional cleaning protocols mitigate these risks significantly.
Hike-happy visitors recognise the value of pet-friendly accommodation!
The Somerset market is vibrant, but it’s also complex. To truly maximise your yield, you need to balance high-season tourist rates with smart off-season pricing, all while ensuring your property has the amenities guests are actually searching for.
Curious about your property's potential? Reach out to our Somerset property management team for a free review.
