Buying a holiday let is an exciting investment but, as a property owner, as well as thinking about décor and what to include in your welcome packs, it’s essential that you are up to speed with the latest legal requirements for holiday lets.
To help you get to grips with holiday let regulations around the UK, here we detail everything you need to know.
Requirements for Letting a Holiday Property so that it Qualifies as a Furnished Holiday Let
There are a number of conditions that your property must meet in order to qualify as a furnished holiday let (FHL). Qualifying as a furnished holiday let can result in multiple tax benefits, as holiday letting is deemed as being a trading business.You can still run a holiday let that doesn't meet these criteria; it just won't qualify for the FHL tax benefits.
To qualify as a FHL for tax purposes, your property needs to:
Be fully furnished
Be situated within the UK, or a country within the European Economic Area (EEA)
Be available for letting for a minimum of 210 days of the year
Be let out for a minimum of 105 days of the year
Not be occupied by any long-term tenants for more than 155 days of the year
Not be occupied by tenants for 31 days of the tax year
You also need to prove that you have an intention of making a profit, by promoting and letting the property commercially.
Our furnished holiday let tax guide goes into more detail about how to qualify as a FHL, the tax benefits and any potential disadvantages there might be.
Legal Requirements for Letting a Property in Scotland
If you are thinking of buying a property to let in Scotland or if you already own a second home and are considering letting it out then you will need to know about the short term accommodation licence scheme.
From 1st October 2022, all new holiday let owners in Scotland must have a licence from the relevant authorities before letting out a property to guests. Property owners who have been letting out their property before October 1st 2022 have until the 30th of September 2023 to apply for a licence. By 1st July 2025, all short-term lets will need to be licensed.
What are the New Controls on Holiday Lets in England?
Later in 2024, new government controls for holiday lets in England will be introduced to give a clearer picture of the short-term let sector.
These will include:
a new planning class for holiday lets in England, meaning that at some point in the future, councils may be able to require property owners in specific areas to seek planning permission in order to set up a new holiday let business (that isn't their own home)
a new mandatory, nationwide registration scheme for holiday lets in England, which the Government have said should be light touch, low cost and simple
Further details surrounding both of these schemes have not yet been confirmed, however we will keep this page updated with the latest information.
It is hoped the new scheme will help drive compliance amongst holiday lets, give clarity to operators and visitors and provide data to local and national authorities on the numbers of holiday lets, where they are, what type they are (eg. a yurt, room in someone's home, dedicated whole property holiday let etc.).
New Planning Class for Holiday Lets in England
Introduction of a new planning use class for short-term lets in England (called C5) will take them out of the dwelling-house class (C3) they are currently in. Only new short-term lets would require planning permission, with existing ones to be automatically reclassified.
Any planning permission requirements will not apply to people renting out their main home for less than 90 nights a year. However, other short-term lets (those that are 'a dwellinghouse that is not a sole or main residence, for temporary sleeping accommodation for the purpose of holiday, leisure, recreation, business or other travel') that are let out for any number of nights per year will be in this new planning class.
If a council wants to limit dwelling-houses newly becoming short-term lets, they will be able to bring in what's called an article 4 direction to require them to get planning permission to do so.
The new guidance means properties will be able to move freely between short-term let class and dwelling-house class (called permitted development).However, local authorities may be able to restrict this under article 4 direction.
To make an article 4 direction, local authorities would need to provide robust evidence and limit this restriction to the smallest geographical area possible. A local authority will likely have to give a year’s notice of introducing such a direction.
If your property isn’t currently operating as a short-term let or you're looking to buy a holiday let, you might consider doing so before an Article 4 direction is introduced in your area so that it automatically sits in the holiday let planning class.
In the meantime, we will continue to engage in government and other decision makers highlighting the contrbution that holiday lets and their visitors make to local economies, especially compared to empty homes and the failure to build on plots with planning permission (known as landbanking).
Please note: Sykes Cottages can't provide you with legal or planning advice, and the above should not be taken as such, rather as a prompt of the issues involved for further consideration. As always, please read the relevant laws, regulations and guidance and seek advice from external experts where you require it. We shall not be liable for any loss of damage arising under or in connection with any action or decisions you take or do not take as a result of reading the above or any loss suffered as a result.
Health and Safety Regulations for Holiday Lets
When letting out your property, there are a variety of different things you will need to do to ensure all holiday let safety requirements are completed and that your property is a safe place for your guests to stay.
Holiday Let Health and Safety
Ensuring that your holiday let is a safe environment will allow both you and your guests to relax in the knowledge that potential risks have been minimised. As a business owner, having proper health and safety measures in place could also reduce your liability should an accident happen.
Sometimes general health and safety requirements for holiday lets can be overlooked. You can help mitigate the amount of risk that your guests will be exposed to by booking a risk assessment to be completed, that will help expose any hazards on your property.
Some general holiday let health and safety actions to consider as an owner include:
Restricting windows to opening by 100mm or less if they are above the ground floor and are accessible by a child
Identifying and minimising trip/slip hazards inside your property as well as in its grounds
Having secure handrails on staircases
Removing any sharp or protruding objects that could injure or hurt your guests
Safety railings on stairs or passageways that may cause risk (height between 90mm and 1000mm)
Providing non-slip tiling around pool areas
Installing cordless blinds
Providing warnings where there are hazards such as low ceilings
Leaving a list of emergency numbers for guests in case of an accident
Keep pathways clear in case of emergency situations
Warn of low ceilings or sudden drops in footing in your property description or details
When walking around your property, use common sense to help you identify where any potential hazards may cause any accidents to occur.
To help you with a risk assessment and plan of action for your property, the Health and Safety Executive (HSE) has resources for businesses.
Holiday Let Fire Safety
Fire Risk Assessments
If you provide holiday accommodation in England or Wales for paying guests, it’s a legal requirement to carry out a fire risk assessment. Under the Regulatory Reform (Fire Safety) Order 2005, you are responsible for taking measures to protect those staying in your property from the risk of fire.
You may be able to carry out a fire risk assessment yourself, or could enlist the help of a professional. A fire risk assessment is a comprehensive look at your property, thinking about the types of people likely to stay in it and considering vulnerable guests, such as young children, elderly guests and those with disabilities. It will identify the fire risks and what measures you need to put in place to reduce or remove this risk. You should keep a written record of this and regularly review it, we strongly encourage it annually.
Visit Britain offers useful fire risk assessment resources, including a fire risk assessment template and other useful documents to help ensure your property follows all the new rules for holiday lets fire safety.
Another way to increase the fire safety in larger or more complex holiday let properties, or those where staff are on the premises, is to provide equipment such as fire extinguishers and fire blankets. Government guidance for England and Wales recommends having one extinguisher near the stairs on each floor, and a fire blanket in the kitchen of small properties. Make sure this equipment is checked regularly and there are also clear instructions on how to use these items for your guests, as well as a warning that these will only be sufficient to tackle very small fires. You may also want to provide a simple evacuation plan for guests.
Fire Safety Guidance for Holiday Lets
From 1st October 2023, new guidance for fire safety guidance for smaller and simple holiday lets in England and Wales came into place. Read more via the links below:
If you provide self-catered accommodation containing upholstered furniture, you must abide by the Furniture and Furnishings (Fire) (Safety) Regulations 1988. These put in place fire resistance standards for upholstered furniture – both new and second hand. This means that upholstered furniture must comply with certain safety tests.
The type of automatic detection and fire warning system that you will need to install depends on the size of your property. If your property is two or three storeys, you’re likely to need an automatic fire detection system that runs from the mains electricity with a battery back-up, known as a Grade D LD2 system. You will need to put detectors in corridors, staircases and bedrooms.
In only the very smallest properties, a connected system of detectors with a 10-year battery, or radio interlinked detectors (Grade F LD2 system), may be enough.
If you are unsure about which system your property needs, your risk assessment should help identify this.
With either system, you’ll also need a heat detector in the kitchen that is linked to the rest of the system. Either system must also be tested regularly to ensure that it works and is loud enough to wake sleeping guests.
Electrical Safety in Holiday Lets
Electrical safety is considered to be critical in reducing the risks of fire, as electrical fires are the most common cause of fires in the home. So it’s your duty of care to make sure that your property is a safe environment for guests.
Electrical equipment and wires deteriorate with use and time, and it is important to ensure your guests are safe during their stay.
What are the Regulations for Electricity Safety?
Unlike with gas safety, there is no legal requirement for you, the landlord, to obtain and renew an Electrical Safety Certificate (except in Scotland, where it is legally required).
However, as part of the hospitality industry, it is good practice to ensure that the following is carried out. Your fire risk assessment will ask you to confirm these take place too. We strongly encourage you to follow good practices and ensure:
That a suitably qualified electrician completes a 5-year electrical safety check on all fixed electrics
An annual electrical safety check on facilities such as a swimming pool, hot tub, sauna or steam room
Any actions identified as requiring any actions or maintenance are completed
You remove any faulty electrical equipment from your property
There are no trailing cables that can cause people to trip or fall. Ensure all wires
are fixed appropriately
All electrical items are purchased from a reputable supplier especially items such as phone chargers which have been responsible for recent fires
If your property has features such as a swimming pool, hot tub, sauna or steam room, then these will also need to have an annual check by a qualified electrician
All electrical items, including phone chargers, should be purchased from a reputable supplier
Holiday let owners must be able to prove that all electrical equipment is in a reasonable state of repair and in proper working condition. Any faulty electrical equipment must be removed from your property
You could also leave instructions/handbooks for your electrical items to ensure guests use them correctly, reducing the risk of having faulty appliances.
Is PAT Testing a Legal Requirement for Holiday Lets?
In short, no. PAT Testing is not a Legal Requirement for Holiday Lets in England and Wales. If you are a holiday let owner in Scotland, PAT testing is a mandatory inspection.
So, this may not be legally required in England and Wales, however, statistics prove, it supports fire safety within all properties as electrical fires are a common cause of fires in domestic properties. Holiday let owners have a duty of care to their guests and by law are required to make sure all electrical items are safe.
PAT Testing or Portable Appliance Testing is an inspection of electrical appliances, this test checks whether the electrical products are safe and up to standard.
This inspection will apply to all electrical equipment that has a plug or will be connected to a plug socket. This will include items such as TVs, toasters, microwaves and lamps. PAT testing for holiday lets is an effective way to identify any defects in the electrical products at the property, faults like this can pose a danger to the guests and the property itself.
Make sure that a suitable qualified electrician carries out Portable Appliance Testing (PAT) on an annual basis, each item will be labelled as a pass or fail and will include the date the test was carried out.
All portable electrical items in your holiday home should be visually inspected in between guest changeovers. Ensure you keep a record after each inspection each year, to show you have all the procedures in place before accepting guests to your property.
As part of the fire risk assessment process, you will need to state the frequency of portable appliance testing as well. Regular checks on portable electrical equipment help to lower the risk of electrical fires.
If you work alongside a holiday let agency, they will often request a record of the annual PAT document. The yearly record will also have to be sent to the agency to keep the information up-to-date.
What is an Electrical Safety Certificate?
As previously outlined, there is no legal requirement for you to obtain a certificate but we strongly encourage you to get electrical fittings and appliances safety checked by an electrician. The resulting report provides you with proof that the inspection has been carried out, and that you have met your duty of care as a holiday let owner.
How Often do you Need to Renew your Electrical Safety Certificate?
All electrical equipment will deteriorate with use and time. It is recommended that the maximum period between inspections is 5 years, but dependent on the volume of guests you cater for, you may wish to have your property inspected more frequently.
Unofficial inspections should be carried out wherever possible, either by yourself or whoever manages the changeover at your property. Having a checklist of items to inspect will be a huge advantage to the efficiency of this inspection. Any hazards must be acted upon immediately. This may be as simple as removing or replacing a defective appliance from the property that you believe to be hazardous, to getting an electrician to replace or repair a fitting.
What are Electrical Safety Devices and How do they Work?
Electrical safety devices, such as an RCD, add an extra level of protection for your guests. An RCD monitors the flow of electricity within a circuit and identifies any loss of current, such as it being diverted through your body, and, upon detection, it shuts down the supply immediately to reduce injury.
RCD devices can be included in the consumer unit (also known as a fusebox), sockets or even a plug adaptor.
Since July 2008, it has become a legal requirement for all circuits in new builds or rewired homes to include an RCD. If your home was built or rewired before this time, then you may want to consider having an electrician inspect your circuits and rewire your home if necessary. At a minimum, you ought to have RCDs added in areas that are damp, such as kitchens, bathrooms, hot tubs, or pools.
RCDs need to be tested frequently by pushing the “test” button. Refer to the manufacturer’s instructions on how often this should be done, but to avoid doubt, this could be added to your changeover checklist.
Gas Safety Regulations for Holiday Lets
Many properties in the UK have a gas supply, whether it is for the central heating or cooking appliances. Of course, having such appliances in your property comes with associated risks; these include fire, explosion, gas leaks and carbon monoxide poisoning.
Therefore the rules and regulations in place for holiday let owners to maintain the safety of gas appliances and protect guests are crucial to adhere to.
When it comes to gas safety in your holiday let, here are the key areas you need to be aware of.
Who Needs a Gas Safety Certificate?
Whether you own a holiday let or are a long-term let landlord, the rules are the same. You, as the landlord, are responsible for the safety of your guests and are required, by law, to hold a valid Gas Safety Certificate.
As a holiday homeowner, you need to comply with the relevant gas regulations to ensure the safety of your guests.
If gas appliances, such as ovens, cookers and boilers, are not properly installed and maintained, there is a danger of fire, explosion, and gas leaks.
Under the Gas Safety (Installation and Use) Regulations 1998 you’ll have to make sure all gas appliances, fittings, chimneys and flues are maintained and are in a safe condition.
What is a Gas Safety Certificate and When is it Required?
A gas safety record must be obtained by using a Gas Safe-registered engineer to maintain and service all gas appliances, pipework, flues and liquefied petroleum gas (LPG) appliances at your property.
In some properties, flues are hidden behind walls or ceilings. To solve this problem, if all or part of the flue cannot be seen, you should arrange for inspection hatches to be fitted. As well as having gas appliances regularly maintained and serviced by a Gas Safe-registered engineer, as a landlord, you are legally required to obtain a Gas Safety Certificate (also referred to as a CP12) and you must keep a written record of the inspection for a minimum of two years.
These are required when there are gas appliances in your property (or grounds), and the inspection will assess the safety of appliances, flues and pipework.
A Gas Safety Certificate provides details of your latest inspection by a Gas Safe-registered engineer. It will cover all items checked during the inspection, where they're located and the results of the safety.
Always report concerns with gas immediately, turn off the equipment and contact the relevant authority.
How to Obtain Gas Safety Certificate?
Gas Safety Certificates can only be issued by a Gas Safe-registered engineer after an inspection.
Use a competent registered gas engineer to install, maintain or repair your gas and LPG appliances including flues. For holiday lets in England, Wales, Scotland and Northern Ireland, you must use one listed on the Gas Safety Register.
For holiday lets in Ireland, you must use one that is registered with the Registered
Gas Installer. You must ensure that a record of any installation of any appliance or flue is made and retained for a period of 2 years from that check.
How Often do you need to Renew your Gas Safety Certificate?
You will need to renew your Gas Safety Certificate at least every 12 months, (though you can get a new assessment in the two months before your previous one expires and not affect the anniversary date, eg, if you had your last assessment on 1 January 2024, you might get your annual assessment done on 15 November 2024. Your next assessment would need to be done by 1 January 2026 (rather than 15 November 2025). Each annual check will require another inspection by a Gas Safe registered engineer.
What do you do with your Gas Safety Certificate?
You are required to keep your certificates for a minimum of two years; however, it is good practice to keep a record of all your certificates.
A copy of your certificate must be displayed in a prominent place where your guests will see it. It must also indicate how they can obtain a copy. A reputable holiday letting agency can store an electrical copy for you, which can be produced for your guests upon request.
If your gas boiler is new, then the registered paperwork will be required instead of a service record.
Further guidance on gas safety can be viewed here, including information from the Gas Safe Register, Registered Gas Installer and National Grid
Carbon Monoxide Poisoning
What Causes Carbon Monoxide Poisoning?
Carbon monoxide is a colourless, odourless, tasteless, poisonous gas produced by the incomplete burning of carbon-based fuels such as gas, oil, wood and coal. These fuels are generally safe to use in relevant appliances, it is only when the fuel does not burn properly that excess carbon monoxide is produced.
Carbon Monoxide Alarms
As well as having appliances, such as your boiler, frequently inspected and serviced, carbon monoxide detectors must be installed to identify the presence of this harmful gas.
Fitting audible carbon monoxide alarms within the property will alert guests if carbon monoxide is present to dangerous levels. These should be fitted in line with the manufacturer’s instructions. As a minimum, you must install a carbon monoxide detector in every room where gas or oil is burnt and in rooms where there is a wood burner or open fire and in Scotland, in every room with a flue running through it.
You should also put detectors in the kitchen unless all appliances are electric, as well as in any room where there is a central heating boiler. In Ireland, you must also put one within 5m of every bedroom. We would strongly encourage one alarm on each floor of the property.
As many holiday cottages are in a secluded location, they have an oil supply instead of gas. Similar to gas, faults in oil appliances can lead to Carbon Monoxide poisoning.
There is no legal requirement for holiday let owners to obtain an Oil Safety Certificate. However, it is recommended that you have your appliances and equipment inspected by an OFTEC Registered Technician who can supply an OFTEC CD/12 Landlord Oil Installation Check form.
How Often do Oil-fired Appliances and Equipment Need to be Serviced?
By law (BS 5410), you are required to have your oil-fired appliances and equipment serviced periodically, in accordance with the manufacturer’s instructions - this is usually every 12 months.
It is recommended that you inspect the storage tanks and supply pipes frequently for any leaks.
To find an OFTEC Registered Technician, visit the OFTEC site.
See the UK Government guidance on storing oil here.
Holiday Let Swimming Pool and Hot Tub Rules
Having a swimming pool or a hot tub can attract more guests to book your holiday let, but both can be dangerous if proper safety measures aren’t undertaken or you don’t adequately maintain them.
As with other potential hazards in your holiday let, you should undertake a thorough risk assessment of your swimming pool to ensure that your negligence isn’t the cause of an accident. Consider measures such as putting safety signs up, think about any slip or trip hazards and provide holiday let house rules around pool safety for guests. You may also want to install a fence around the pool. Follow the HSE swimming pool health and safety guidelines for extra security.
If your property has a hot tub, you will also need to undertake a risk assessment, and make sure you understand how to operate and maintain your hot tub safely for guests. Read our hot tubs for holiday lets guide for more information, or HSE’s hot tub operation and management guide offers further information about how to control risks from legionella and other infectious agents, plus other potential hazards.
TV, DVD and Music Licences in Holiday Lets
If you have a TV in your accommodation and guests can watch or stream live TV on it, you’ll need a TV licence. For holiday lets, you’ll need a special type called a Hotel and Mobile Units Television Licence (hotel licence). Currently, a single TV licence costing £159 will cover up to 15 accommodation units on a single site – so if you have holiday cottages in different locations, you’ll need a separate licence for each location. The TV Licensing website tells you more.
You will also need a licence if you provide a DVD film library for your guests, as providing films to paying guests without a licence is an infringement of copyright law (the Copyright, Designs and Patents Act 1988). Two main organisations issue licences to businesses; Filmbank Media and MPLC. Prices will depend on the size of your accommodation and the length of the licence. If you don’t provide DVDs and guests bring their own, you won’t need a licence.
Depending on the size and type of your holiday let, you may also need a copyright licence to play music on a device, as the Copyright, Designs and Patents Act 1988 states "any use of copyrighted music in public is possible only with the permission of the person who holds the copyright to the music being played". So, you may need something called TheMusicLicence (which covers both copyright licences which are known as the PPL licence and the PRS for Music licence) in order to avoid this.
You can obtain more information, including about any discretion in relation to small self-catering properties, by contacting the PPL PRS Customer Service Centre on 0800 0720 808.
Holiday Let Insurance
Not talking out holiday home insurance, could be a costly mistake if something were to go wrong, such as a fire, flood or break-in. As well as offering buildings and contents cover, specialist holiday let insurance can provide financial protection against other items including:
Accidental damage
Theft
Public and employers’ liability
Loss of rent
Public liability insurance can be used to cover legal claims should someone injure themselves in your holiday home. To make sure our owners are protected, we ask all Sykes Holiday Cottage owners to take this out as part of our agreement. You can find out more information by contacting Pikl holiday let insurance.
Sykes Cottages Ltd is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346, who are authorised and regulated by the Financial Conduct Authority firm number 773357. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.
Always read the terms and conditions of any policy you are considering carefully before you take it out to ensure you are happy with the levels of cover.
You may already have a liability insurance policy but be aware that not all liability policies include swimming pool or hot tub liability coverage.
• You may have to pay an additional amount to include any claims resulting from the ‘attractive nuisance’ that pools and hot tubs can sometimes be considered.
It’s also important to take the right type of mortgage out for your holiday let, and learn how to qualify. If you plan to let a property out for short-term holidays, you’ll need a holiday let mortgage. Residential mortgages and buy-to-let mortgages are not designed for holiday lets. Read here about holiday let mortgages.
If you have any employees that will work on your property, including any cleaners or maintenance staff, you will need employer's liability cover as a legal requirement.
There are many other forms of insurance that you can utilise when letting out your holiday property.
You can find out more about insurance in our holiday let insurance guide.
Holiday Let Council Tax and Business Rates
While you will pay council tax for your home, if your holiday property in England was available to let for short periods totalling 140 days or more in the last year (20 weeks), and was actually let for 70 days or more, you’ll have to pay business rates rather than council tax.
In Wales, as a result of new changes from April 2023, properties will need to have been available to let for at least 252 days, and must be rented for at least 182 days, in any 12-month period, and then available to let for at least 252 days in the following 12 months, to qualify for business rates. If it doesn’t meet those thresholds it could be subject to increased council tax rates because of premiums in certain areas of Wales. Make sure that you keep up to date with the changes in council tax and business rates for holiday lets in Wales.
In Scotland, holiday-let properties need to be let out for 70 days or more, and available for 140 days or more, of the financial year. You will need to contact your local assessor who will calculate a price for business rates based on the number of beds, property type and size. Make sure that you keep up to date with the rules and regulations for holiday letting in Scotland so that you don't get caught out by any new rules for holiday lets.
Need help with the next steps of your holiday letting journey?
If you're thinking of buying a holiday let or just need some advice, our property experts can help answer any queries you may have.
Our guide to council tax and business rates for holiday lets tells you all you need to know.
Disclaimer: The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time, so please contact our prospective new owner team if you’d like to hear how. Nothing in this article constitutes the giving of financial, tax or legal advice to you rather as a prompt of the issues involved for further consideraton. Please read the relevant laws, regulations and guidance and seek advice from external experts where you need.
Where we refer to a third party supplier, we don't make any representations or warranties of any kind as to the competency, qualification, fitness for purpose, accuracy, reliability, suitability, or availability of them or his/her/its details, offers, products or services. If you choose to enter into any arrangement for the supply of goods or services of a supplier listed above or in links, you do so entirely at your own risk. Any such arrangement is between you and the supplier. We are not a party to it. We shall not be liable for any loss or damage arising under or in connection with any such arrangement or any action or decisions you take or do not take as a result of reading the above or any loss suffered as a result.
If we have referred within the article to a third-party provider of unregulated holiday let mortgages, this is due to the fact that such mortgages aren’t currently regulated by the FCA. As a helpful reminder, your home may be repossessed if you do not keep up repayments on a mortgage, so again anything you decide to do in this particular area this is one on which you should take your own professional advice on too, as we aren’t providing and can’t provide you with this.
Charlotte Beautement, Holiday Let Content Writer
