Holland returned to the United Kingdom in 1995, to the Diocese of Chelmsford, as Bishop of Colchester. That see is also one of a suffragan bishop, but this diocese is one in which the see is divided into discrete areas of administration (since 1983),[7] so the bishop is more often referred to as an area bishop. He retired from full-time ministry in 2001.[8]
In February 2012, Holland signed an open letter calling for the Church of England to allow its priests to officiate at civil partnership ceremonies in their churches if their conscience allows them to.[10] It was suggested that this would work in the same way as the remarriage of divorced couples, in that no priest would be forced to do so if their conscience did not allow it.[11]