Running a holiday let isn’t as simple as promoting a listing and waiting for the bookings to come in. Not only are there specific regional holiday let regulations as well as UK wide ones, there are a whole host of safety requirements too. In this guide, we’ll provide a comprehensive overview of the key areas to get you started.
Please note that the following information outlined below does not constitute advice and is just a general guide only. Speak to a qualified specialist if you require help regarding issues such as planning, tax, finances or safety.
General UK wide legal requirements for letting a holiday property
Regional holiday let rules and laws
General health and safety requirements for holiday lets
Holiday let fire safety regulations
Gas safety regulations for holiday lets
Water safety requirements for holiday homes
Holiday home electrical safety regulations
Holiday let cleaning requirements
Insurance requirements for holiday lets
Holiday let mortgage requirements
Voluntary holiday let accreditation schemes
General UK wide legal requirements for letting a holiday property
There are a large number of UK wide restrictions, many of which will apply to your individual circumstances. Below is an overview of some of the key areas where it relates to general restrictions.
Subletting restrictions for leaseholders and renters
If the holiday let is a leasehold property and you don’t own the lease, you’ll most likely need to get permission from the lease owner. Breaking the terms of any lease could result in you losing the property, so the consequences of not informing them could be severe. Similar to leasehold, you may need to get permission from your landlord if you’re a tenant renting the property too. For tenants in council houses, you might be committing a criminal offence if you rent out a council or housing association property. Citizens Advice has a guide on subletting if you want to learn more about the topic.
Restrictive covenants
Restrictive covenants are agreements between two land owners. They can prevent certain activities or changes being made at the property regardless of how many times the property changes hands. If your deeds have a restrictive covenant such as a rule preventing you from turning the house into a holiday let or extending the building, then breaching this agreement could open you up to legal action from the other party. Removing a restrictive covenant could be a difficult process, so be sure to check if your property has one or consult with a solicitor if you’re not sure.
Energy performance certificates
If you run your property as a furnished holiday let (FHL) as set out by HMRC then you may be required to obtain an energy performance certificate (EPC) under certain circumstances:
- You run the building as a holiday let.
- Guests stay no longer than 31 days at a time.
- You rent the property out for 4 months or more in any 12 month period.
- The occupier is responsible for the property energy costs.
For a fuller list of details regarding this topic, check out the government’s energy performance certificate guide. If you’re a holiday let owner in Scotland, then getting an EPC could be a requirement regardless of whether your property qualifies as a FHL, as noted in our section on regional legal requirements.
Council fines and enforcement
Holiday let owners should also take care to vet their guests where possible, as consistent noise or nuisance could lead to neighbours making a complaint. Councils have the ability to enforce abatement notices, with statutory fines dished out where these notices haven’t been complied with. To reduce the chances of this occurring, you could:
- Check your guest’s profile and social media accounts after bookings.
- Reach out and communicate to find out more about your guest if you’re unsure.
- Avoid the chances of a party occurring by excluding 1 night bookings and setting a longer minimum stay.
- Hand over the keys in person. Have a look at our Airbnb check-in guide for more thoughts on the guest check in process.
- Set a damage deposit where you think this is needed and the booking platform allows it.
In the event an issue does occur, communicate with your neighbour first to deescalate the situation where possible.
Planning laws
Before converting your property into a holiday let, you’ll need to check a number of issues first:
- Property use class: For planning purposes, local laws categorise properties into different use classes. If you’re going to use the property in a way that changes its use class, then you may need to apply for planning permission. ‘Use class’ definitions can vary across different local authorities.
- Regional restrictions: As you’ll see in our regional restrictions section, some areas of the UK place limits on holiday letting. You may need local authority approval, depending on your circumstances.
- Extensions: Check planning guidelines for extensions. Councils may have the right to take legal action if you do this without required planning consent.
- New regulations: At the time of writing, the Government has proposed that existing homes converted into holiday lets may require planning permission if the property is not used as a sole or main home. This will be introduced alongside new permitted development rights, which mean that planning permission may not be required in areas where the local council decides not to exercise this right. The possible result of this legislation could be that more areas across the nation require planning permission for new holiday lets.
Planning laws can be complex, so you may want to contact your local authority or a specialist if you’re unsure.
Regional holiday let rules and laws
Region specific laws in the UK mean that some holiday let owners face more restrictions than others. It’s important to do your research to see if any local laws apply to your area. The following is a general guide. The government frequently introduces new laws. Check with your local authority for the most up to date information that applies to you.
Scotland’s short let licencing scheme
New holiday let rules in Scotland make it a criminal offence to run a holiday let or host paying guests without holding a short let licence. In order to successfully apply for one, you’ll need to meet a number of legal requirements, such as:
- The property must meet the repairing standard, which is a basic level of repair that all rented properties must meet in Scotland.
- The applicant must have suitable buildings and public liability insurance in place. We discuss this more in our section on insurance.
- You must ensure that your property meets a number of fire, gas, water and electrical safety requirements.
- For portable appliances in your home such as TVs, kettles and toasters, a qualified person must conduct a portable testing appliance report on devices the guest has access to.
- As noted in our section on EPCs, some homes will require an energy performance certificate. This needs to be valid within the last 10 years but only applies to certain properties. Have a look on the Scottish Government’s website to find out more.
- You’ll also be required to state how many guests will be able to stay at the property. Short let licence owners will be obligated to make sure the total number of guests staying there never exceeds this.
- You must display certain documents that are accessible to your guests.
The above is just a brief overview and we encourage you to check out the Scottish government’s website to get a more detailed breakdown. Your local authority may also require that certain conditions be met, so check with them too.
Short let registration scheme for holiday lets in England
In February 2024, the Government announced that it would introduce a mandatory registration scheme for holiday lets in England. The exact details of the scheme are unclear at the time of writing, but registration could require certain conditions be met, such as compliance with mandatory health and safety laws. As we discussed in our section on planning, you may be required to apply for planning permission in certain areas of the country too.
The London 90 day rule
In London, any residential properties used as short lets are classed as ‘temporary sleeping accommodation’. If you rent your home out to guests, this will apply to you, and your property must meet the following restrictions in order to operate as a short let:
- At least one person providing the accommodation is liable to pay council tax for the property.
- You rent the property out for no more than 90 nights within a calendar year. .
Breaching these conditions may incur council enforcement, so speak to your local authority if you are uncertain. If you think it’s likely that you’ll exceed 90 nights a year, your council may consider this a ‘change in use’ and require planning permission.
Northern Ireland’s tourism permit
All holiday let owners providing accommodation for tourists in exchange for a fee must apply for tourist accommodation certification with the Northern Ireland Tourist Board (NITB) in order to operate lawfully. A non-exhaustive list of conditions you must comply with include:
- Inspections as part of the approval process and inspections at least once every 4 years when operating your holiday let.
- Your certificate must be placed at the entrance or anywhere specified by the NITB.
- You must comply with any conditions set out in the certificate.
Breaching the terms the NITB sets in your certificate could be a criminal office and you may incur fines if you do so. Inspectors also have the right to serve a notice that revokes your certificate if certain conditions aren’t met.
Other regional holiday home regulations across the UK
Other areas of the UK also impose restrictions on holiday lets, including:
- Guernsey permit: Holiday accommodation providers in the island must apply for an annual permit from the Committee for Economic Development Department before accepting any guest bookings.
- Blackpool restrictions: Property converted into holiday accommodation in Blackpool could be considered by the council as a ‘material change in use’ and require planning approval.
- Isle of Man building regulations approval: Tourist accommodation providers in the Isle of Man must complete a building regulations application form and comply with several conditions.
- Jersey registration: Holiday let owners are now able to rent their property out for up to 12 weeks a year thanks to a recent relaxing of the rules around short lets. However, owners looking to rent their property for longer may need to seek planning permission from the local council.
Governments and councils introduce new laws frequently. Even if your area is not included in any of the listed regions that have holiday letting restrictions, it’s a good idea to check with your local authority regardless.
General health and safety requirements for holiday lets
Whilst health and safety laws for holiday lets are generally less restrictive than the laws that apply to hotels and bed and breakfast accommodation, there are nonetheless a number of different health and safety laws that you’ll need to adhere to.
Identifying hazards
As a small business owner, it’s your responsibility to make sure that your property is a safe environment for guests. Here are some key areas you you should consider to make your home safer:
- Slip, trip and fall risks: Areas such as stairs or slippery floors are common areas where people can have accidents. Untidy areas or spaces with lots of clutter are potential risk areas too. Check for liquids when your guest checks out as wet floors are also common areas for slips.
- Hazardous substances: Lock away potentially harmful substances like bleach and other chemicals or put them in a hard to reach location so that smaller children can’t access them.
- Fire safety: Conducting tasks such as regularly checking smoke alarms and making sure there are appropriate exit signs and points of escape where needed are essential. You will also need to which items or areas of your property are a potential fire hazard. Jump to our section on fire safety regulation for more details.
- Electricals: Regularly test electrical equipment and make sure these are in good working order. Visit our electrical safety section for more information on this topic.
- Sharp edges: Look for any sharp edges in the property, including metal equipment or furniture edges that could cause cuts. If your property has a garden, check there too.
- Water risks: Areas such as garden ponds or swimming pools are potential risks for small children in particular.
- Cleanliness: Having clean and sanitised properties help reduce infection and reduce the spread of germs. Have a look at our cleaning section for more help on this topic.
Assessing the likely risk
Now that you’ve identified potential hazards, you can assess the likely risks associated with them. Think about:
- Who will be affected? If your home is likely to attract families, for example, then potential issues such as sharp edges and hazardous substances may carry a higher risk. By contrast, elderly guests may be more affected by slip, trip and fall risks. By identifying the likely target of the risk, you’ll be better placed to prioritise a plan of action.
- What action is needed? Assess the extent of measures taken to make the home safer and whether there is any further action required. Actions could range from making modifications to your property, to changing your process for certain tasks. Child nets on garden ponds and a clean, decluttered property may make your home a safer environment, but so could a robust cleansing process or regular property maintenance checks.
- Identifying responsibilities: Once you’ve established what actions need to be taken, make a note of when they need to be implemented by and who will do this. If you have a cleaner, for example, you could provide them with a cleansing checklist. Alternatively, put these tasks in a calendar if you intend to do these yourself so you have a timeline to work to.
Taking action
Whilst the above steps can help you put robust procedures in place, it’s also worth considering:
- Can you get rid of the risk entirely or at least make the risk of harm unlikely?
- Is the action proposed reasonable in terms of harm reduction, time and money spent?
- Can any measures be put in place safely and without injury?
Putting health and safety measures in place are a sensible and necessary requirement for every holiday let owner. They’ll also reduce the potential for liability claims to be brought against you too.
In addition to the above, you’ll be required to review the measures you’ve put in place to make sure they’re working too. This is far from an exhaustive guide and there may be further requirements for you to follow, depending on your circumstances. Check out the Health and Safety Executive’s website for more details.
Holiday let fire safety regulations
All small accommodation providers in the UK are subject to the Fire Safety Order, which makes fire safety regulation mandatory to comply with if you’re a holiday let owner. Small accommodation owners should check out the government’s fire safety guide for holiday lets before doing anything.
Fire risk assessment
As we discussed in our section on health and safety, the first step in any health and safety process should be to conduct a risk assessment to look for potential hazards. When conducting a fire safety risk assessment, you will need to:
- Visit the premises.
- Consider the type of people that are likely to visit the property and consider how each of these people may escape.
- Look for potential fire hazards and consider measures to reduce or eliminate the risk of a fire occurring.
The Government expects that holiday let owners should be able to conduct these types of assessments without specialist knowledge. However, if you’re unsure, they suggest that you may want to speak to a fire risk assessor. This isn’t mandatory, however.
Potential fire hazards
As you conduct the risk assessment, you’ll need to identify all of the potential fire hazards in your home. Potential areas where this could to apply include:
- Electrical items: Check items are in working order. Make sure guests don’t use high risk electrical equipment.
- Smoking: Smoking is a common fire risk. It’s also banned from public places such as communal areas.
- Heating: Check the potential fire risk for heating in your property and avoid using potential hazardous or dangerous heating substances and appliances.
- Arson: Reduce the risk of arson by making the property secure and keeping combustible items clear of the property.
- Candles: Items such as candles can easily set fire to objects, so avoid having these or any items with a naked flame in the home.
- Cooking, housekeeping, and hazardous substances: Leave instructions for cooking appliances and make sure everything is in working order. Certain equipment such as deep fat fryers could be considered higher risk. Cleanliness is also important, as flammable liquids or faulty cooking equipment can also catch fire. Tidy the house and lock away hazardous substances. Rubbish and clutter can also add fuel to flames when the house is on fire.
- Furnishings: You’ll have a legal duty to ensure that all furnishing and furniture conforms to the latest furniture and furnishings fire safety regulations.
- Contractors: When hiring professionals to carry out work, ensure that they are qualified and competent.
Fire protection measures
After the fire risk assessment, implement fire protection measures, such as:
- Ensuring adequate fire alarm systems, emergency lighting, exit signs and fire fighting equipment such as extinguishers are in place.
- Formulating an escape plan in the event of a fire.
- Regularly testing fire equipment to ensure that it continues to work.
Fire protections measures should be proportionate to the likely risk of a fire occurring. The higher the risk, the more measures you’ll need to put in place.
Fire safety key takeaways
Given the potential consequences when something goes wrong, fire safety can seem daunting at first. The government has set out examples of common layout plans to help you as a starting guide.
Gas safety regulations for holiday lets
As a holiday let owner, you’ll also be responsible for maintaining adequate gas safety. Your responsibilities include:
- Maintenance: Make sure your gas pipework and systems are in good working order. Repair items when needed, and make sure there work is carried out by a qualified professional.
- Safety checks: Conduct gas safety checks annually.
- Records: In addition to regular safety checks, you’ll need to store a record of these somewhere.
For further information, check out the Health and Safety Executive’s gas safety guidance on the subject.
Water safety requirements for holiday homes
If your water is supplied by a water company then the main risk will come from when the property is unoccupied for extended periods of time. Unused pipework systems can result in unwanted bacteria and increase the risk of legionaire’s disease. Water systems that are regularly in use reduce the risk of this occurring. If your property is going to be unoccupied for an extended period of time, consider turning off the water supply. The potential damage from contracting legionnaires disease can range from severe to even fatal, so seriously consider this if this applies to you. In addition to managing a similar risk, holiday lets with a private water supply also require a risk assessment every 5 years in addition to regular monitoring.
Holiday home electrical safety regulations
All holiday lets must conform to the Electricity at Work Act, which sets out a number of minimum electrical standards that maintain electrical safety. This may require:
- Risk assessment: Conduct a risk assessment to determine issues such potential electrical hazards and the level of potential harm.
- Regular checks: Make sure that you regularly check that devices work, and are up to date. The frequency of testing required will depend on the item.
- Repairs: Repair any damaged or faulty electrical equipment as soon as possible. Make sure this is carried out by a qualified technician.
You may also want to consider:
- PAT testing: Whilst not legally required for most parts of the UK, portable appliance testing is the examination of appliances to determine that they are fit to use. The regulations don’t specify who should conduct this testing, although you may want to use a qualified electrician to make sure this is carried out safely.
- EICR: Landlords with tenants must also conform to specific electrical standards and produce an electrical installation report (EICR). You’ll need to supply this if your local authority requests it. However, this doesn’t apply to most holiday lets in the UK at the time of writing.
Please note that PAT testing and EICR certificates will be required if you’re a holiday let owner in Scotland, however. For more guidance on health and safety where it relates to electrical safety, visit the Health and Safety Executive’s website.
Holiday let cleaning requirements
After conducting your legally required health and safety assessment, you may have identified several potential cleaning-related hazards or processes that need to be addressed. Some key areas to consider include:
- Food poisoning: If you regularly leave food for guests, make sure this hasn’t gone off and throw out anything that has. Throw out any food left behind by previous guests too. Make sure that surfaces are clean, especially places used for cooking to avoid the risk of contamination. Check out the Food Standards Agency for guidelines on how to reduce the risk of this occurring.
- Ventilation: With Covid not that too distant a memory, you may want to consider how to reduce infection risk. Ventilate the property to allow good air circulation. This will also allow for the evaporation of any chemicals used when cleaning too.
- Guest items: Look for any items left behind by guests that could cause harm. Items such as these or illicit substances left behind could also lead to guest complaints.
- Pest control: A clean and uncluttered property reduces the risk of pest infestation. Pests can spread disease, so you may want to consider how to reduce this risk.
- Property damage: A robust cleaning process should also include a damage checklist, which we also discuss in our Airbnb cleaning checklist for hosts. Spotting damage early and providing evidence is a requirement for most insurers. Discovering damage as soon as it happens will help you mitigate losses and make the property safer for other guests.
The Health and Safety Executive also provides some guidance around common risks when it comes to cleaning.
Insurance requirements for holiday lets
There are a number of legal or contractual requirements where insurance could be a requirement. This include:
- Scottish short let licences: As we discussed in our section on regional holiday let restrictions, holiday let owners in Scotland will need to apply for a short let licence in order to be able to operate. You must also have buildings insurance and adequate public liability cover in place. Speak to your local authority about the level of cover required.
- Mortgage agreements: Insurance is typically a requirement for accepting a mortgage.
- Security locks: Insurers at quote stage often ask what kind of locks you have in place at the property. Typically, many providers prefer locks that conform to the BS3621 standard, although this may depend on the insurer.
- Adequate cover: Not all insurers provide the same cover for holiday lets, with some potentially excluding cover for issues such as theft or malicious damage by a guest. This is less of a contractual or legal requirement and is more about what cover you require, so think carefully about what you need.
- Property management companies: If you want someone to manage your holiday let, many property management companies require insurance in place before agreeing to this.
- Guest communications and payments: When using booking platforms such as Airbnb and Booking.com, keep any guest communications and payments on the platform. Never accept money in cash if you agree to extend a guest’s stay, as doing so could violate the terms of your booking provider and void any future claims with your insurer.
Holiday let tax rules
There are various different rules where it relates to holiday let taxes, so consider your own situation carefully. The following is a brief overview that could apply to some holiday let owners, but speak to a tax specialist for any specific or up to date advice:
- Furnished holiday let tax: According to HMRC, some holiday let owners may be able to qualify for relief if their property meets the criteria for ‘furnished holiday let’ (FHL). In March 2024 however, the government announced that the FHL tax relief will be scrapped by 2025.
- VAT: Businesses that earn over a certain amount could be liable to pay VAT.
- Business rates & council tax: Holiday lets available for a certain number of nights each year may have to pay business rates, which may entitle you to rate relief in some circumstances. If you don’t qualify for business rates, you could be liable to pay council tax instead.
Visit our holiday let tax article for a general overview of this topic.
Holiday let mortgage requirements
Like tax relief, mortgages are a specialist area and you should seek out help from a qualified specialist if specific advice needs to be sought. As a general guide, you may need to consider some of the following:
- Getting an adequate mortgage: If your property is an additional home or is run solely as a holiday let, you may need to apply for a specialist mortgage for this. If your property is financed with a regular residential mortgage and you’re weighing up potential rental income, check with your provider first to see if they’re ok with this. Some may not allow this type of activity or place restrictions on what you can do.
- Qualification criteria: Each mortgage provider is different, but it’s likely that you may need to save up for a minimum deposit amount in order to qualify for a mortgage. Lenders often also have a maximum loan to value ratio, so there will be a limit to how much you can borrow. Lenders may also look for a minimum personal income and may insist on other criteria, such as not allowing you to use the property as your main residence.
- Mortgage terms: Like a residential mortgage, your holiday let mortgage will be subject to a number of terms and conditions, such as rules around insurance and late payments. Penalties for issues such as early or late payments can be high, so take the time to read through these carefully before doing anything.
A mortgage can come with considerable monthly costs, so speak to a financial adviser if you’re unsure about anything. Our holiday let mortgage article gives you a basic overview of the topic.
Voluntary holiday let accreditation schemes
In addition to adhering to mandatory holiday let laws, holiday let owners may also want to consider joining voluntary accreditation schemes. Members are typically required to follow certain requirements in return for accreditation. Potential benefits for joining certain schemes may include:
- Visitors booking with your accommodation can do so with confidence knowing that it conforms to a particular standard.
- Joining an accreditation scheme could give you confidence that you’re following requirements that are also legally necessary, although this may depend on the accreditation scheme.
- If the accreditation scheme requires an assessment of your property, going through this process could give you invaluable feedback that you might otherwise not be getting.
Examples of potential accreditation schemes include:
- Official tourist boards: Visit England’s Quality Assessment Schemes allow holiday let owners to join a scheme with a recognised name. According to their website, Visit England works with destinations and local assessment organisations to administer this scheme at a local level. Visit Scotland, Visit Wales offer something similar. Northern Ireland also has something comparable, although this is mandatory, as outlined in our section regional restrictions.
- Independent accreditation schemes: Quality in Tourism offers an accreditation scheme called ‘Safe, Clean and Legal’. It claims to provide independent accreditation and to be the only accreditation scheme that requires the uploading of documents such as gas, fire certificates, and risk assessments.
Be sure to do your own research so that you’re confident any accreditation scheme you join works for you.
Key takeaways
As you can see, there’s a lot of different potential rules, regulations and requirements to consider as a holiday let owner. This can be overwhelming, so you may want to consider the following:
- Make an action plan: Write everything down so you don’t forget. Distil your thoughts and set reminders in your calendar if you need to use someone else’s expertise. If you’re new to holiday letting, check out our guide on starting a holiday let business. Some actions will come at a price, so make sure you’re aware of general holiday home running costs. Our holiday let calculator could help you figure out how much you could earn after these costs are deducted.
- Utilise experts: Areas such as tax, finance and safety can be tricky subjects to navigate. If in doubt, consider going to a qualified specialist where you think this is necessary.
- Be proportionate: Your action plans need to be proportional to your circumstances and the probable risk. Sometimes it’s easy to overcomplicate issues, but some tasks may be fairly straightforward.
- Use reputable sources: When looking for information, use websites that carry authority. Sources such as government websites often give the most reliable information.
- Contact your local authority: In many cases, legal regulation will be enforced by local authorities such as your council. They should be able to point out any relevant issues around subjects such as regional restrictions and planning.
- Stay informed: As we’ve shown, new rules for holiday lets are about to be introduced across the UK. Set up alerts and pay regular attention to news to stay aware of potential regulation changes that may affect you.
Pikl insurance is a specialist insurer that provides comprehensive cover for holiday lets and hosts. If you have any questions around insurance cover, visit our holiday let insurance page or get in touch.
