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UK Online Home Rental Services Market Analysis, Size, and Forecast 2025-2029

UK Online Home Rental Services Market Analysis, Size, and Forecast 2025-2029

Published: May 2025 192 Pages SKU: IRTNTR80642

Market Overview at a Glance

$1.05 B
Market Opportunity
10.4%
CAGR
9.8
YoY growth 2024-2025(%)

UK Online Home Rental Services Market Size 2025-2029 

The UK online home rental services market size is forecast to increase by USD 1.05 billion at a CAGR of 10.4% between 2024 and 2029.

  • The Online Home Rental Services Market is witnessing significant growth, driven by the ascendancy of hybrid and flexible rental models. These models offer increased convenience and flexibility to renters, allowing them to choose from a wide range of properties and lease durations. However, ensuring trust and security in online transactions remains a critical challenge. With the increasing prevalence of cyber threats and data breaches, renters demand robust security measures to protect their personal and financial information. Regulatory hurdles also impact adoption, as governments worldwide introduce new regulations to govern the online rental market. These regulations aim to protect consumers and ensure fair business practices, but they can add complexity and increase operational costs for rental service providers.  Growth in demand for tiny home structures is the primary trend in the online home rental services market. 
  • To capitalize on market opportunities and navigate challenges effectively, companies must prioritize security and regulatory compliance while continuing to innovate and offer competitive pricing and flexible rental options. By addressing these challenges head-on, online home rental services can continue to disrupt traditional rental markets and meet the evolving needs of modern renters. The integration of Internet of Things (IoT) technology with building automation software is a key trend driving market expansion.

What will be the size of the UK Online Home Rental Services Market during the forecast period?

Online Home Rental Services Market in UK Size

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  • In the dynamic online home rental services market, outdoor activities and travel itineraries continue to be popular trends among travelers. To cater to this demand, transportation services integration and travel safety features are increasingly prioritized by property management software. Travel trends indicate a shift towards environmental sustainability and community engagement, making property portfolio management an essential investment opportunity. Destination marketing, travel recommendations, and customer loyalty programs are key strategies for attracting renters. Smart home technology, including keyless entry, voice assistants, and home automation, enhances the rental experience.
  • Rental yield analysis, pricing algorithms, and dynamic pricing help property owners maximize income. Travelers seek local attractions, shopping and entertainment, food and beverage options, and cultural experiences when choosing a rental property. Travel insurance, ethical travel practices, and guest feedback analysis are crucial components of responsible travel. Property value assessment and rental income tracking are essential for effective property management.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

  • Type
    • Flats
    • Semi-detached houses
    • Detached houses
  • Service
    • Economy
    • Mid-range
    • Premium
  • Rental Category
    • Monthly
    • Weekly
    • Daily
    • Yearly
  • End-user
    • Resident
    • Tourist
  • Geography
    • Europe
      • UK

By Type Insights

The flats segment is estimated to witness significant growth during the forecast period. The online home rental services market in the US is characterized by its technological advancements and diverse offerings. Payment processing systems ensure secure transactions, while guest safety and insurance provide peace of mind for property owners. Business travelers and families seek user-friendly platforms for booking short-term and holiday rentals, with automated processes simplifying the rental agreement and calendar synchronization. Digital marketing strategies, including search engine optimization and social media marketing, expand market reach. Seasonal rentals cater to varying demand, and property amenities enhance the user experience. Property management systems offer data analytics and pricing optimization for rental income and property taxes.  Renewable energy solutions and building information modeling are essential trends in the market, as businesses and organizations strive for sustainability and cost savings.

Online Home Rental Services Market in UK Share by Type

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The Flats segment was valued at  USD 648.10 million in 2019 and showed a gradual increase during the forecast period. Artificial Intelligence (AI) and energy management systems work in tandem to optimize energy usage in smart buildings, reducing operational costs and enhancing overall sustainability.  Artificial intelligence and machine learning facilitate predictive analytics and rental regulations compliance. Virtual tours and property photos showcase listings, and guest verification and fraud detection ensure trust. Customer support and communication tools foster positive guest reviews and relationships. Mobile apps and responsive design cater to on-the-go booking, while security features protect both property and guest information. Long-term and luxury rentals cater to different demographics, with property managers and host services offering additional support. Rental guarantee and property insurance safeguard property owners, and local laws and location features add convenience. Overall, the online home rental services market in the US continues to evolve, prioritizing user experience, security, and accessibility. This segment incorporates advanced technologies, including access control systems, video surveillance, and fire and life safety systems, which collaborate to establish a robust security infrastructure.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Online Home Rental Services in UK Industry?

  • The rise of hybrid and flexible rental models is the primary force shaping the market's current dynamics. These innovative rental solutions are gaining significant traction among consumers, offering greater flexibility and convenience. By providing more choices and customizable options, these models are transforming the rental industry landscape.  The online home rental services market is experiencing significant evolution in the UK, driven by shifting tenant preferences and proactive service providers. A notable trend in this transformation is the emergence and advancement of hybrid and flexible rental models. These models bridge the gap between short-term vacation rentals and long-term leases, catering to an expanding demographic seeking accommodation for durations longer than typical holiday stays but shorter than traditional long-term commitments. This demand is fueled by factors such as the rise of remote work, project-based employment, relocation for assignments, and interim housing during life transitions like home renovations or permanent relocation.
  • To address the unique needs of this market, service providers are integrating advanced features such as fraud detection, property photos, virtual tours, listing management, data analytics, payment security, guest reviews, security features, and host insurance. Additionally, guest verification processes and group travel accommodations are becoming increasingly important. These innovations enhance the user experience, foster trust, and ensure a secure and seamless rental process for both property owners and renters. Overall, the online home rental services market is poised for continued growth and innovation, driven by the evolving needs and preferences of its customer base.

What are the market trends shaping the Online Home Rental Services in UK Industry?

  • Maintaining trust and ensuring secure online transactions is a critical market trend. Professionals in the digital sphere prioritize this priority to foster confidence in e-commerce platforms. The online home rental services market in the US is experiencing significant growth due to several key factors. With the increasing availability of high-speed internet and the rise of a tech-savvy population, more individuals are turning to digital platforms for their rental needs. This shift is driven by the convenience and efficiency offered by online platforms, which enable users to easily browse property listings, communicate with property managers, and complete transactions from the comfort of their homes. Artificial intelligence is also playing a role in the market's expansion, with advanced search algorithms and virtual assistants streamlining the rental process.
  • Data privacy remains a priority, with responsive design and robust security measures ensuring that user information is protected. Social media marketing and customer relationship management are essential tools for property managers seeking to attract and retain renters. Pricing optimization is another critical factor, with rental income and property taxes influencing the competitive landscape. Vacation rentals, in particular, have seen strong growth, with mobile apps and search engine optimization enabling property managers to reach a wider audience. Overall, the online home rental services market is poised for continued expansion, with innovation and technology playing a key role in shaping the future of the industry.

What challenges does the Online Home Rental Services in UK Industry face during its growth?

  • Ensuring trust and security in online transactions is a critical issue that significantly impacts the growth of the industry. With the increasing reliance on digital platforms for commerce, safeguarding sensitive information and maintaining customer confidence is essential. This challenge necessitates continuous innovation and implementation of advanced security measures, as well as strict adherence to regulatory compliance. Failure to address these concerns effectively can result in reputational damage and lost business opportunities.  The online home rental services market has experienced significant growth in the UK, providing landlords and tenants with increased convenience. However, ensuring trust and security throughout the rental process is a persistent challenge. Critical aspects include identity verification, secure financial transactions, and fraud prevention. While digital platforms offer efficiency, they also introduce risks that traditional methods mitigate. For instance, verifying the authenticity of property listings and prospective tenants can be complex online. Property safety is another crucial concern. Host services, such as property management and rental guarantee, help mitigate risks for landlords. Mobile optimization and online advertising expand reach and accessibility.
  • Rental regulations vary by local laws, necessitating compliance. Predictive analytics and machine learning technologies can streamline processes and improve guest communication. Property insurance is essential for risk management. Property managers play a vital role in ensuring compliance with regulations and maintaining property safety. Long-term rentals require additional considerations, such as tenant retention strategies and lease agreement terms. By addressing these challenges, online home rental services can provide a seamless, secure, and efficient experience for all parties involved.

Exclusive Customer Landscape

The online home rental services market in UK forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the online home rental services market in UK report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Online Home Rental Services Market in UK Share by Geography

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, online home rental services market in UK forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

9flats.com PTE Ltd. - This company provides an online platform for home rentals, including apartments, houses, and unique stays, connecting travelers with hosts worldwide.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

  • 9flats.com PTE Ltd.
  • Airbnb Inc.
  • Avail
  • BoutiqueHomes
  • CoStar Group
  • Elite Destination Homes
  • Expedia Group Inc.
  • HomeToGo GmbH
  • Lodgis
  • LVH Global Inc.
  • MakeMyTrip Ltd.
  • NestAway Technologies Pvt Ltd.
  • Oravel Stays Ltd.
  • Rentberry Inc.
  • Rentalo.com Inc.
  • Upad Ltd.
  • Wyndham Destinations Inc.
  • Zillow Group Inc.
  • Zumper Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Online Home Rental Services Market In UK

  • In February 2024, Airbnb, a leading player in the online home rental services market, announced the launch of its new service, Airbnb Plus, which offers guests a more consistent and high-quality stay experience, with properties undergoing an in-person inspection and verification process (Airbnb Press Release, 2024). This development signified a significant shift towards enhancing customer experience and differentiating offerings in a competitive market.
  • In May 2025, Expedia Group's Vrbo platform entered into a strategic partnership with Marriott International, allowing Marriott's loyalty program members to earn and redeem points when booking properties on Vrbo (Expedia Group Press Release, 2025). This collaboration aimed to attract more customers and increase market share by leveraging the extensive reach and loyalty base of both companies.
  • In October 2024, Zillow, a prominent real estate and rental marketplace, acquired ShowingTime, a leading scheduling and showing management platform, for approximately USD500 million (Zillow Press Release, 2024). This acquisition enabled Zillow to streamline the rental process for property managers and agents, offering a more efficient and integrated solution for the online home rental services market.

Research Analyst Overview

The online home rental services market continues to evolve, with dynamic market activities unfolding across various sectors. Property safety remains a top priority, with hosts offering guest insurance and implementing security features. Business travelers seek user-friendly booking platforms and seamless calendar synchronization. Digital marketing strategies, including search engine optimization and social media marketing, are essential for property owners to attract renters. Seasonal rentals and holiday lettings experience increased demand, necessitating automated processes for rental agreement generation and payment processing. Customer support and fraud detection are crucial for maintaining trust and ensuring a positive user experience. Property photos and virtual tours are increasingly important for showcasing property amenities and facilitating informed decision-making.  The integration of Internet of Things (IoT) technology with building automation software is a key trend driving market expansion.

Predictive analytics and machine learning enable price optimization and effective property management. Rental regulations vary by location, necessitating adherence to local laws and regulations. Long-term rentals and luxury properties require specialized services, such as rental guarantee and property insurance.  Renewable energy solutions and building information modeling are essential trends in the market, as businesses and organizations strive for sustainability and cost savings. Host services, guest communication, and property management solutions are integral to the success of online rental platforms. The market's continuous evolution encompasses ongoing advancements in payment security, guest reviews, and mobile optimization. Property taxes and pricing optimization are essential considerations for rental income generation. The integration of artificial intelligence and data privacy enhances the user experience and streamlines operations. Overall, the online home rental services market remains a vibrant and ever-changing landscape.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Online Home Rental Services Market in UK insights. See full methodology.

Market Scope

Report Coverage

Details

Page number

192

Base year

2024

Historic period

2019-2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 10.4%

Market growth 2025-2029

USD 1.05 billion

Market structure

Fragmented

YoY growth 2024-2025(%)

9.8

Key countries

UK

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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What are the Key Data Covered in this Online Home Rental Services Market in UK Research and Growth Report?

  • CAGR of the Online Home Rental Services in UK industry during the forecast period
  • Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
  • Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
  • Accurate predictions about upcoming growth and trends and changes in consumer behaviour
  • Growth of the market across UK
  • Thorough analysis of the market's competitive landscape and detailed information about companies
  • Comprehensive analysis of factors that will challenge the online home rental services market in UK growth of industry companies

We can help! Our analysts can customize this online home rental services market in UK research report to meet your requirements.

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Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Online Home Rental Services market growth will increase by $ 1051.3 mn during 2025-2029.

The Online Home Rental Services market is expected to grow at a CAGR of 10.4% during 2025-2029.

Online Home Rental Services market is segmented by Type( Flats, Semi-detached houses, Detached houses) Service( Economy, Mid-range, Premium) Rental Category( Monthly, Weekly, Daily, Yearly)

9flats.com PTE Ltd., Airbnb Inc., Avail, BoutiqueHomes, CoStar Group, Elite Destination Homes, Expedia Group Inc., HomeToGo GmbH, Lodgis, LVH Global Inc., MakeMyTrip Ltd., NestAway Technologies Pvt Ltd., Oravel Stays Ltd., Rentberry Inc., Rentalo.com Inc., Upad Ltd., Wyndham Destinations Inc., Zillow Group Inc., Zumper Inc. are a few of the key vendors in the Online Home Rental Services market.

Europe will register the highest growth rate of 100% among the other regions. Therefore, the Online Home Rental Services market in Europe is expected to garner significant business opportunities for the vendors during the forecast period.

UK

  • Ascendancy of hybrid and flexible rental modelsThe landscape of the online home rental services market in UK is undergoing a significant transformation is the driving factor this market.
  • driven by a confluence of evolving tenant preferences and the proactive adaptation of service providers. A prominent trend in this evolution is the increasing prevalence and sophistication of hybrid and flexible rental models. These models transcend the traditional dichotomy of short-term vacation rentals and long-term leases is the driving factor this market.
  • catering to a growing segment of individuals who require accommodation for periods extending beyond typical holiday stays but falling short of conventional long-term commitments. This demand is fueled by various factors is the driving factor this market.
  • including the rise of remote work is the driving factor this market.
  • project-based employment is the driving factor this market.
  • individuals relocating for specific assignments is the driving factor this market.
  • and those seeking interim housing during life transitions such as home renovations or permanent relocation. Online platforms are at the forefront of facilitating this shift by offering a diverse range of options that incorporate elements of both short-term and long-term rentals. These hybrid models often feature flexible lease durations is the driving factor this market.
  • ranging from a few months to just under a year is the driving factor this market.
  • accompanied by varying levels of service and amenities. For instance is the driving factor this market.
  • some platforms now provide options for fully furnished apartments with utilities included on a mid-term basis is the driving factor this market.
  • appealing to professionals on temporary assignments who seek a hassle-free living arrangement. The flexibility extends beyond lease length to encompass aspects such as notice periods and the possibility of extending stays on a month-to-month basis after an initial term. This adaptability is particularly attractive to individuals whose housing needs are inherently fluid and unpredictable. Furthermore is the driving factor this market.
  • technology plays a crucial role in enabling the seamless operation of these hybrid models. Online platforms leverage sophisticated search filters and algorithms that allow users to specify their desired length of stay and filter results accordingly. Dynamic pricing mechanisms is the driving factor this market.
  • which have long been a feature of the short-term rental market is the driving factor this market.
  • are increasingly being adopted and refined for mid-term rentals is the driving factor this market.
  • reflecting factors such as seasonality is the driving factor this market.
  • demand is the driving factor this market.
  • and the specific features of the property. This allows both landlords and tenants to benefit from market efficiencies. Property management companies are also integrating their services with these platforms is the driving factor this market.
  • offering bundled packages that include property maintenance is the driving factor this market.
  • tenant support is the driving factor this market.
  • and streamlined digital processes for lease agreements and payments is the driving factor this market.
  • further enhancing the appeal of flexible rental options. The emergence of specialized platforms focusing specifically on mid-term rentals underscores the growing significance of this segment. These platforms often differentiate themselves by curating listings that are particularly suited to the needs of mid-term tenants is the driving factor this market.
  • such as proximity to business districts or specific amenities catering to longer stays. In January 2025 is the driving factor this market.
  • for example is the driving factor this market.
  • Rightmove expanded its offerings to include a dedicated section for flexible rentals is the driving factor this market.
  • allowing users to search for properties with lease terms ranging from one to six months. This move by a prominent player in the UK property portal market signals a broader recognition of the increasing demand for such options. Similarly is the driving factor this market.
  • in March 2024 is the driving factor this market.
  • Spotahome is the driving factor this market.
  • a platform known for mid-to-long term rentals is the driving factor this market.
  • partnered with several corporate relocation agencies in the UK to provide serviced accommodation options for employees on assignment is the driving factor this market.
  • demonstrating the growing integration of flexible rentals within the corporate sector. This trend towards hybrid and flexible rental models is not merely a temporary adjustment; it represents a fundamental shift in how individuals approach housing is the driving factor this market.
  • driven by evolving work patterns and lifestyle preferences. The online home rental services market is responding proactively is the driving factor this market.
  • fostering greater choice and convenience for both landlords and tenants during the forecast period. is the driving factor this market.

The Online Home Rental Services market vendors should focus on grabbing business opportunities from the Flats segment as it accounted for the largest market share in the base year.