Holiday Let Management Dorset and Somerset: The 2026 Market Guide

What’s Changed, What’s Working — and How Smart Owners Are Staying Ahead with Holiday Let Management in Somerset and Dorset

If you own a holiday let in Dorset or Somerset, the past 18 months may have felt like a turning point.

Not a crash.Not a collapse.But a clear shift away from the post-Covid “easy money” phase.

Holiday lets are still in demand across the South West — but the way they succeed has changed. Owners who adapt are doing well. Those who expected a hands-off investment are increasingly deciding it’s not for them.

Here’s a clear, honest look at:

• how the local market has shifted over the past 18 months

• what things look like heading into 2026

• and what successful holiday let owners in Dorset and Somerset are doing differently

The last 18 months: demand is still there, but expectations are higher

UK holiday lets continue to attract millions of bookings each year, and Dorset and Somerset remain strong domestic destinations thanks to coastline, countryside, dog-friendly stays and short breaks.

However, the landscape has matured:

• More properties entered the market after Covid

• Guests now book later, stay shorter, and compare more carefully

• Costs have risen across mortgages, utilities and compliance

• Local and national rules have tightened

The result?👉 Holiday lets now reward active, informed management, not passive ownership.

For Owners looking at holiday let management in Dorset and Somerset, the past 18 months have marked a clear shift from the post-covid "easy money" phase to a more mature, business led market.

Dorset owners: council tax changes have forced clarity

One of the biggest local changes has been Dorset Council’s approach to second homes.

From April 2025, many second homes became subject to a 100% council tax premium, unless they qualify under specific criteria. This has pushed owners to be far clearer about how their property is used and managed.

For many, this has been a moment of decision:

• operate properly as a holiday let, with clear availability and records

• or step back from short-term letting altogether

This shift is important — because it’s already changing the shape of the local market.

Somerset: quieter markets, different strengths

Somerset tells a slightly different story.

Away from major tourist hotspots, holiday lets make up a smaller proportion of housing stock, which often means:

• less saturation

• steadier year-round demand

• more flexibility in pricing and usage

For owners who understand their market and price intelligently, Somerset can be quietly resilient rather than volatile.

The upside many owners aren’t talking about: saturation is easing

A noticeable number of post-Covid investors are now deciding that holiday letting involves more work than expected.

That’s not a bad thing.

As casual or reluctant owners exit, it creates space for:

• well-run properties to perform better

• fewer poorly priced listings dragging the market down

• guests gravitating towards quality, clarity and good reviews

For committed owners, this is a healthier, more sustainable market.

What successful Dorset & Somerset owners are doing differently

Across the South West, we’re seeing clear patterns among owners who are staying profitable and calm:

1. Being proactive about tax and classification

Owners are reviewing how their property is classified and ensuring their letting activity, availability and records are aligned properly — with advice from their accountant where needed.

Clarity here avoids surprises later.

2. Using flexible nightly pricing — not panic discounting

Rather than set-and-forget pricing, successful owners:

• adjust rates dynamically

• open up shorter stays in quieter periods

• avoid blanket discounts that devalue the property

The goal isn’t to be the cheapest — it’s to be consistently bookable.

3. Treating management as income protection

From guest communication and review management to cleaner coordination and contractor response times, small operational improvements add up over a year.

This is where professional holiday let management often pays for itself.

What 2026 looks like for holiday lets in Dorset & Somerset

Looking ahead, the direction of travel is clearer than it’s been for a while:

• fewer casual investors, more committed operators

• continued domestic demand for South West breaks

• guests expecting clarity, quality and responsiveness

• owners needing to stay adaptable rather than reactive

Holiday lets aren’t disappearing — they’re settling into a more grown-up phase.

For owners who treat their property as a business asset (with the right support), this can be a far more stable and rewarding place to be.

How Key Turner Management supports owners in this market

At Key Turner Management, we work with holiday home owners across Dorset and Somerset who want their property to perform well without becoming a second full-time job.

We support owners by:

• helping them adapt calmly to market and rule changes

• managing pricing and occupancy strategically

• handling guest communication and reviews

• coordinating cleaners and contractors reliably

• keeping standards high and stress low

No scare tactics. No one-size-fits-all approach. Just clear, professional holiday let management built around long-term sustainability.

Want to talk it through?

If you’re:

• unsure whether your holiday let setup still makes sense

• feeling pressure from changing rules or costs

• or simply wondering whether your property could be performing better

We’re always happy to have a conversation.

📞 Call us to talk things through📧 Or email us to arrange a review of your holiday let

Sometimes a few small changes make all the difference.

Key Turner Management

Holiday let management & consultancy

Dorset & Somerset