Range of colours spread round holiday home (7)
I believe the answer is:
palette
'range of colours' is the definition.
(I've seen this before)
'spread round holiday home' is the wordplay.
'spread' becomes 'pate' (pate is a kind of spread).
'round' is an insertion indicator.
'holiday home' becomes 'let' (a property rented or let during holidays).
'pate' enclosing 'let' is 'PALETTE'.
(Other definitions for palette that I've seen before include "Painter's equipment" , "An artist mixes his paints on it" , "Paint-mixing board" , "Artist's range of colours" , "Range of colours - what artist mixes them on" .)