If you’re getting started letting a holiday home, it’s important to know the rules in your area. In Property Reporter today, Ben Edgar-Spier, head of regulation and policy at Sykes Holiday Cottages has a handy round-up of what you need to know – “…the changes being introduced to the holiday letting sector vary across the UK and Ireland, but all the British Isles have the same eventual goal – to further regulate a sector which has progressed over the last decade or so.”

UK Staycation Boom

• UK locals are preferring holiday destinations closer to home.
• Many are considering letting out their second homes for holidaymakers.
• But, new rules and regulations make them cautious.

Regulations Across the UK:

• Different areas have different rules.
  • For instance, Scotland has a licensing scheme with a waiting period of up to a year and 32 variations based on the local authority.
  • Wales has made tax-related changes.
  • England is considering a new registration scheme and might introduce mandatory planning permission for new lets in certain areas.
• The goal of these regulations is to control the rapid growth of the sector.

Concerns:

• There’s limited data on short-term letting.
• The industry boosts the economy and supports jobs. Too many regulations might hinder this.
• A national register might help strike a balance. It will make it clearer for owners about their responsibilities and give assurance to holidaymakers.

Key Points for Holiday Let Owners:

• Health and safety is crucial: check electrics and gas, do fire risk assessments, ensure child safety, and maintain swimming pools or hot tubs.
• If associated with an agency like Sykes, they offer guidance and reminders for document renewals and new regulations.

Country-Specific Regulations:

• England:
  • To get business rates instead of council tax, a property must be let for 70 days and available for 140 days in the past year.
  • From April 2025, some areas might double council tax for second homes and short-term lets.
  • In Greater London, without planning permission, a property can only be a short-term let for less than 90 days a year.
• Scotland:
  • Short-term lets need a license.
  • Existing lets need to apply for this license by 30th September 2023.
  • New lets need this license before starting operations.
  • Business rate qualifications are similar to England.
  • In Edinburgh, properties not used as main homes need planning permission for short-term letting.
• Wales:
  • For business rates, a property should be available for letting for 252 days in the past year, rented for at least 182 days, and available for the next 252 days.
  • Missing this means paying council tax and possibly an extra premium.
  • In Gwynedd, converting a main home to a second home or short-term let may soon require planning permission.
• Northern Ireland:
  • Properties need a certificate from Tourism Northern Ireland before advertising.
  • This certificate is valid for four years and there are regular inspections.

If you’re considering holiday letting, it’s essential to understand the local rules, keep an eye on upcoming changes, and possibly join an agency that can provide guidance.