Renting on the Island

Housing

The rental market on the Isle of Wight has been severely affected by the growth of short-term holiday lets. Between 2018 and 2021, the number of holiday-let properties rose by 39 per cent, from 908 to 1,262. This shift has dramatically reduced the availability of long-term rental housing for residents.

Data shows that available rental stock fell by 82 per cent compared to 2019 levels, with monthly availability dropping from around 350 homes to about 60. Competition among tenants has more than quadrupled. The shortage is most acute in tourist areas like Sandown, Shanklin, Ventnor and Cowes, where landlords can earn significantly more from holiday lets than from long-term tenancies.

The impact falls hardest on low and median-income families, including key workers in health, social care and other essential services. The Isle of Wight Council has proposed requiring planning permission for holiday lets operating more than 140 days a year, to protect the long-term rental supply.

Rental prices have risen alongside the supply reduction. A two-bedroom flat in Newport typically rents for less than the same property in Cowes or Ventnor. The limited new-build housing coming onto the market does little to offset the loss of rental stock to the holiday sector. Housing associations including Southern Housing and Vectis Housing manage social housing on the island, but waiting lists are long.