Domestic disturbance

Alistair Handyside at Premier Cottages, which represents more than 1,000 cottages across the UK, says: “The signs suggest there is over-capacity and therefore a good prospect of discounts, particularly in the middle market.

“Location is critical too: for example, Bath is fine, while just outside Bath is suffering badly.”

The UK self-catering holiday has transformed itself in the past decade, with a drastic improvement in standards of accommodation. But rentals are under great pressure.

So many investors have entered the sector – particularly in fashionable areas like Devon and Cornwall – on the assumption that UK holidays are making a comeback, that prices are vulnerable when demand falls.

Sarah Chambers from HomeAway.co.uk says: “We have been seeing hundreds of owners and property managers every week adding reductions to UK rental properties, with current deals up to 35 and 50 per cent below standard rental rates.

“Two superb holiday homes in Cornwall have cut 50 per cent off rentals next week, taking prices down to just £1,000 and £750 respectively for five and three bedroom houses.”

Cottages4you are offering reductions of around 25 per cent: a holiday lodge for four in the Malvern Hills is down from £616 to £498 from July 29 and a cottage sleeping four in Upper Bonchurch, near Ventnor, on the Isle of Wight is down from £950 to £760 in the same week.

In the Quantock hills of Somerset, a detached barn sleeping four falls from £718 to £574, also in early August.

Nick Rudge at Cottages4you says: “Whether people want to make the most of a long weekend, have a second holiday at home or simply escape for a few days, shorter break holidays are an ideal way of exploring the UK. With such a wide range of properties across the country, we’re delighted to be able to offer discounts on two, three and four-night breaks, as well as seven and 14-night stays through the peak holiday period.”

Market experts think demand for UK self-catering holidays has been hit by recent poor weather as well as attractive short-break offers from leading hotel chains. Plunging prices on last minute short-haul packages could also be a factor.