What are the new holiday let regulations in the UK for 2025?

Key Takeaways

Holiday let regulations in the UK are becoming stricter. New registration schemes and local authority oversight have been implemented.

Health and safety compliance is mandatory and closely regulated.

Meeting HMRC’s Furnished Holiday Let criteria is required to maintain tax benefits.

Property managers can save time and reduce risk by using expert tools and support to stay ahead of changing rules.

Holiday let regulations in the UK are changing quickly, with new rules in place for 2025 that affect everything from tax status to safety compliance.

As a property manager, staying on top of these changes ensures you meet legal obligations, protect guest safety, and maintain your property’s long-term profitability.

Contents

What is a holiday let in the UK?

A holiday let is considered a furnished property rented out on a short-term basis.

It can be rented to a guest for leisure or holiday use.

Different from mid-term or long-term rentals, holiday lets are typically booked for stays of a few days to a few weeks.

In the UK, the HMRC classifies some properties as Furnished Holiday Lets (FHLs). These types of properties have specific tax benefits.

To qualify, a property must meet strict conditions:

Available for rent at least 210 days per year.
Rented commercially for at least 105 days per year.
Not to be let long-term (over 31 days) for more than 155 days per year.

What are the new rules for holiday lets?

The UK government has implemented several reforms in recent years, with more changes taking place in 2025.

England

The government is moving toward a mandatory registration scheme for short-term and holiday lets. This gives local authorities better oversight of the sector.

Scotland

A licensing regime came into force in October 2022, requiring all short-term lets to apply for a license. Property managers must demonstrate compliance with safety standards and submit all documentation.

Additionally, Scotland is preparing for the introduction of a national visitor levy, expected to be implemented in the coming years. This levy will allow local authorities to apply a small nightly charge to guests, with details and start dates varying by council.

Wales

Local authorities are allowed to set higher council tax rates on second homes and holiday lets, with occupancy limits similar to FHL classification.

What is the criteria for a holiday let in England?

To qualify as a holiday let in England, properties must meet HMRC’s FHL rules.

Available to rent for at least 210 days per year.
Commercially let at least 105 days per year.
Limited personal use by the owner.

This classification affects whether the property qualifies for holiday let tax benefits, such as:

Capital allowances for furniture, fixtures, and equipment.
Ability to split profits between spouses for tax purposes.
Eligibility for certain reliefs on capital gains.

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What permission do you need for a holiday let in the UK?

Depending on the property’s location, different permissions are required.

In London, the 90-day rule means that properties cannot be let short-term for more than 90 nights per year without planning permission, and rental platforms like Airbnb automatically enforce this.

Other local authorities, such as in Cornwall, the Lake District, and Edinburgh, also have strict planning restrictions and require specific permissions.

What is the 90-day rule for holiday lets?

The 90-day rule applies in Greater London under the Greater London Council (General Powers) Act 1973.

It states that a property can only be used for short-term letting for up to 90 nights per calendar year unless planning permission is obtained.

As we mentioned before, since many rental platforms automatically track and enforce this rule, property managers require systems to help track bookings across multiple channels to guarantee compliance.

Is Airbnb classed as a holiday let?

Yes. Airbnb and alternative letting platform listings in the UK are generally classed as holiday lets if they are rented on a short-term basis to guests.

However, classification as an FHL, for tax purposes, depends on meeting HMRC’s availability and occupancy conditions.

Simply publishing a listing on Airbnb does not mean that these conditions are met, and therefore, they might not apply.

While property managers must also report owners’ profits to HMRC, this process currently requires external accounting or XML reporting tools.

Are there any health and safety regulations for holiday lets in the UK?

Health and safety is one of the most regulated aspects of managing holiday lets in the UK.

All property managers must comply with the following:

Fire safety: Smoke alarms on every floor, carbon monoxide detectors in rooms with solid fuel appliances.
Gas safety: Annual Gas Safety Certificate (CP12).
Electrical safety: Mandatory inspection and testing of installations at least every 5 years.
Furniture and furnishings: Compliance with fire safety standards.
Guest information: Clear instructions on emergency procedures and local contacts.

How do holiday home regulations UK compare to those in Spain?

If you are a property manager with an international portfolio, it’s essential to note that Spain’s holiday let regulations vary significantly by region.

For example, the Balearic Islands have some of the strictest licensing rules in Europe, with limits on the number of properties that can be licensed.

In Catalonia, all holiday lets must have a specific tourist licence, while Madrid and Andalusia each have their own occupancy and safety standards.

This is completely different from the UK, which is moving toward a nationwide registry system.

Although local rules still apply in certain regions, the UK is attempting to unify major regulations for easier and efficient compliance.

For property managers working across borders, using a property management system that adapts to multiple legal frameworks is vital.

To learn more about regulations in Spain, read our detailed article on the SES Hospedajes.

Achieving compliance with Avantio

One UK property manager recently worked with Avantio to ensure compliance across her growing portfolio of holiday lets.

With properties throughout the UK, managing the 90-day rule, safety certificates, and planning permissions became increasingly complex.

By integrating Avantio’s tools, she was able to track occupancy automatically and centralise links to compliance documents for easier management. She also noted that direct bookings increased immensely once entrusted to Avantio.

How to stay compliant with UK holiday let regulations in 2025

Holiday let regulations UK are changing, but it doesn’t need to be a challenge.

Balancing compliance with efficiency and profitability can be achieved through professional software and expert support — while using additional tools where required, such as for HMRC reporting or document storage.

FAQs

Do I need planning permission for a holiday let in the UK?

In some areas, yes. London requires planning permission if you let a property short-term for more than 90 nights per year, while other local authorities have different restrictions.

What is the 90-day rule in London?

The 90-day rule means a property can only be used for short-term letting for up to 90 nights per year unless planning permission is obtained. Platforms such as Airbnb enforce this automatically.

What are the main health and safety regulations for holiday lets?

Holiday lets must comply with strict safety rules, including annual gas checks, electrical inspections, smoke and carbon monoxide alarms, and fire-safe furniture.

Does listing on Airbnb automatically make my property a holiday let?

Yes, Airbnb properties are classed as holiday lets if rented short-term, but they only qualify as Furnished Holiday Lets (FHLs) for tax benefits if they meet HMRC’s availability and occupancy rules.