The number of holiday let products on the market has grown by 72% since September 2021, says Moneyfacts.

This time last year there were 186 mortgages to choose from, which has since increased to 320.

And there are now 31 lenders offering this type of mortgage compared to 25 in September 2021.

Meanwhile, rates have increased significantly. Last year, the average fix for a holiday let was 4.14%. It is now 4.94%, having dipped to 3.80% in March 2022.

Although holiday lets are gaining popularity, Moneyfacts finance expert Rachel Springall warns: “There are notable government measures coming into play next year that are likely to impact the holiday let market as homeowners will need to show evidence of their lettings and meet certain criteria to qualify for business rates relief.

“Holiday lets will need to be rented for a minimum of 70 days a year and available to be rented out for 140 days a year under new rules which are to come into force from April 2023.

“It is hoped the changes will protect legitimate holiday let investors and crack down on others but they may also deter potential investors who have doubts over meeting the new rules.”