Key UK holiday let rules and regulations

Holiday home owners need to comply with various regulations that may apply to their property or business. Not complying with the law may result in consequences for your business. With regulations varying across the UK and frequently being updated, it is important to keep up to date. Below, we discuss some of the key regulations and rules you may need to be aware of as a holiday let owner.

Please note that the following information does not constitute advice and is a general guide only. Speak to a qualified specialist if you require help regarding issues such as planning, tax, finances or safety. Requirements can differ across the UK, so check the rules that apply where your property is located.

New rule changes for holiday lets

Holiday let regulations have evolved over the last few years. Here are some of the latest changes affecting different parts of the UK:

• Furnished holiday let tax rule changes: from April 2025, the Government abolished the Furnished Holiday Let tax regime. In the past, holiday let owners who qualified were able to benefit from certain tax advantages.

• New licensing and registration laws: on 1 October 2022, Scotland introduced a mandatory short-term let licensing scheme. The UK Government is also introducing a mandatory registration scheme for short-term lets in England. The scheme is not yet in force at the time of writing. Wales has also introduced visitor accommodation registration, which is now open. Existing providers are required to register by 31 March 2027. We cover these changes in more detail below.

• Council tax changes: from 1 April 2025, local councils in England have been allowed to charge a council tax premium of up to 100% on some second homes. The decision to do this will be down to the local authority, however. We discuss this and the topic of tax more broadly in our section on tax rules.

• Fire regulation changes: amendments to existing fire law in England and Wales came into force in 2023. There is more on this below in the next section.

Fire regulations for holiday lets

Holiday lets in England and Wales can fall under the Fire Safety Order. Changes on 1 October 2023 introduced additional requirements for responsible persons. The UK Government has published a fire safety guide for small paying guest accommodation. Owners in Scotland may be subject to different requirements, so check the Scottish Government website for guidance there. Different requirements may apply elsewhere in the UK, including Northern Ireland.

Generally speaking, holiday let owners should:

• Conduct a fire risk assessment: where fire safety law applies, you will need to conduct an assessment that looks for potential risk areas. As part of this, consider the type of people likely to visit. You may want to speak to a fire risk assessor if you feel you need more guidance.

• Identify fire hazards: fire hazards should be identified as part of your assessment. Common risk areas include electrical items, smoking, heating appliances, fire sources and cooking equipment.

• Implement fire protection measures: implement appropriate measures to reduce or eliminate risks once they have been identified. Common measures can include installing suitable alarms, providing appropriate information or signage where needed, and regularly testing equipment.

Holiday lets may sometimes come with their own specific fire risks. Common areas to think about include:

• Fireplaces: traditional or gas fireplaces and wood burners may present fire and carbon monoxide risks. Instructions for use and measures such as fire guards may help. Carbon monoxide alarms may be required where living accommodation contains gas or solid-fuel-burning appliances, depending on the nation and rules that apply.

• Smoke alarms: regularly test these to make sure that they work.

• Escape routes: escape routes should be clear, unobstructed and suitable for the property. Larger or more complex properties may also need appropriate signage.

• Furnishings: upholstered furnishings and mattresses may need to meet fire safety standards. Check that any furnishings supplied in your holiday let are suitable and safe for use.

• Storage: areas with lots of storage may pose a fire risk. A cluttered garage storing petrol cans could result in a fire, for example.

Health and safety regulations for holiday lets

In addition to fire rules, holiday let owners should consider general health and safety requirements. Key steps may include:

• Identifying hazards: common health and safety risks include slips, trips and falls, hazardous substances and electrical devices.

• Assessing risks: risk assessments should take account of who will likely be affected. They should also consider what action is needed and who will be responsible for implementing safety measures.

• Taking action: can the risk be eliminated entirely or minimised? Measures should be proportionate and put in place safely without risk of injury.

Holiday let health and safety risk areas

When it comes to holiday lets, think about:

• Higher-risk areas: features such as swimming pools, ponds and hot tubs may increase risks such as drowning, slips and falls. Could you mitigate some of these risks with signage or other measures such as appropriate flooring and house rules? The Health and Safety Executive has guidance covering areas such as pools and spas.

• Instructions: particular risk areas may benefit from specific instructions, such as how to use cooking equipment or operate a wood burner safely.

• Emergency contact details: put measures in place so that guests can contact someone in an emergency. Your welcome pack should also include what to do in an emergency.

• Cleaning process: cleaning can come with its own risks. Use changeovers as an opportunity to look for damage and address hazards before guests arrive. Our holiday let cleaning guide covers the changeover process in more detail. Be mindful of hazards such as cleaning liquids left on the floor.

• Obstructions: keep the house free of obstructions to reduce the risk of trips and falls. Cluttered houses may also increase the risk of pest infestation, especially in areas such as kitchens.

Check out the Health and Safety Executive's website for more in-depth details about health and safety. Northern Ireland may have different guidance and local requirements.

Building regulations for holiday lets

Building regulations set minimum standards for property design and construction. Building regulations approval may be required when building a new property or renovating or converting an existing one. You may also need to consider relevant legal safety requirements, such as those covering gas and electrical safety. The Government outlines what comes under building regulations on its website. Building regulations and approval processes may differ across the UK, with government guidance for each part of the UK setting out the applicable requirements.

For holiday lets, you may need to consider:

• Property use and planning: planning rules vary across the UK. Using a property as a holiday let may require planning permission where this amounts to a material change of use, depending on the property, location and applicable planning rules. Relevant planning and use class guidance for the part of the UK where your property is located will help determine what applies.

• Extensions and conversions: converting an outbuilding for holiday guests or extending a holiday home may require planning permission and building regulations approval. Check the relevant planning guidance or speak to your local authority if you are not sure.

Where planning permission or building regulations approval is required, you should obtain it before carrying out the work. Failure to comply with building regulations may result in enforcement and fines. It may also make it harder to sell your holiday home.

Holiday let electrical safety regulations

Holiday let owners should make sure that electrical installations and appliances are safe for guests to use. The exact requirements can vary depending on where the property is located and how it is operated. This may involve:

• A risk assessment: conduct a risk assessment to determine issues such as potential electrical hazards and the level of potential harm.

• Regular checks: make sure that electrical equipment is regularly checked and maintained, with inspection and testing carried out at appropriate intervals. The frequency required will depend on the equipment and the rules that apply.

• Repairs: repair any damaged or faulty electrical equipment as soon as possible. Make sure this is carried out by a suitably qualified person where appropriate.

Also consider:

• PAT testing: there is no single UK-wide requirement for portable appliance testing. Requirements vary according to the property and nation. In Scotland, short-term let licensing requires a competent person to produce a Portable Appliance Testing Report for moveable appliances that guests have access to.

• EICR: specific electrical safety standards apply to certain rented homes. In England, for example, the relevant requirements generally apply where a property is occupied as a tenant's only or main residence, so they may not apply to holiday lets. In Scotland, short-term let licensing requires an Electrical Installation Condition Report for fixed electrical installations. Different requirements can apply elsewhere or where a property has a mixture of holiday guests and tenants.

For more information about electrical safety, visit the Health and Safety Executive's website. Jurisdiction-specific guidance is also available for different parts of the UK.

Gas safety regulations for holiday lets

If your property has gas appliances or systems, your responsibilities may include:

• Maintenance: make sure your gas pipework and systems are in good working order. Repair items when needed, and make sure the work is carried out by a Gas Safe registered engineer.

• Safety checks: conduct gas safety checks annually where required.

• Records: keep the required records of safety checks.

For further information, check out the Health and Safety Executive's gas safety guidance or the relevant guidance for Northern Ireland.

Water safety requirements for holiday homes

If your water is supplied by a water company, the main health and safety risk may arise when the property is unoccupied for extended periods. Unused pipework systems can result in unwanted bacteria and increase the risk of legionnaires' disease. Water systems that are regularly in use reduce the risk of stagnation.

If your property is going to be unoccupied for an extended period, consider an appropriate flushing regime or, for longer periods, draining the system where suitable. The potential impact of contracting legionnaires' disease can be severe and, in some cases, fatal. Holiday lets with a private water supply may also require risk assessments or monitoring, so check the rules that apply to your property.

Holiday let regulations in Scotland

Short-term let accommodation in Scotland generally requires a short-term let licence before operating. Licence holders must meet a range of conditions covering areas such as property standards, insurance, fire safety, gas, water and electrical safety.

Other requirements can include limits on guest numbers and making certain safety or licence information available to guests. The rules that apply can depend on the property and type of short-term let.

The above is only a brief overview. The Scottish Government guidance provides more information.

Holiday let regulations in England

The following current and upcoming regulations apply to holiday lets in England:

• The London 90-night rule: in London, residential properties can generally be used for short-term letting for up to 90 nights in a calendar year without planning permission where the relevant conditions are met. Beyond this, planning permission is generally required. Check the London guidance and any other conditions that apply to your property.

• Registration scheme: the UK Government is introducing a mandatory national registration scheme for short-term lets in England. The scheme is not yet in force at the time of writing.

• Planning: whether planning permission is required can depend on how a property is used for short-term letting and its impact on the surrounding area. Local planning authorities are responsible for determining whether permission is needed, so check the rules that apply in your area.

Holiday let regulations in Wales

Holiday let owners in Wales need to consider a number of specific rules and requirements. Wales has introduced visitor accommodation registration, which is now open. Existing providers are required to register by 31 March 2027.

Wales has also introduced legislation for a licensing scheme for visitor accommodation, which will initially focus on self-catering accommodation. Further regulations and guidance will be introduced before the scheme comes into force, so owners should check the latest Welsh Government guidance for updates.

Holiday let regulations in Northern Ireland and the Crown Dependencies

Different requirements also apply in Northern Ireland and the Crown Dependencies. For example, tourist accommodation in Northern Ireland is subject to a statutory certification scheme, while Jersey, Guernsey and the Isle of Man have their own rules covering areas such as visitor accommodation, planning and building requirements.

If your holiday let is located in one of these areas, the relevant government or tourism authority can confirm which requirements apply to your property.

Insurance rules for holiday lets

There are a number of legal or contractual situations where insurance may be a requirement. These include:

• Scottish insurance regulations: holiday let owners applying for or holding a short-term let licence in Scotland must have valid buildings insurance and appropriate public liability insurance in place for the relevant periods.

• Mortgage agreements: buildings insurance is commonly a condition of a mortgage.

• Property management companies: property management companies may require insurance to be in place before agreeing to manage your property.

• Shared areas: if your second home is located on a shared site such as a holiday let park, the landowner may require some form of insurance as part of your contract with them.

When it comes to insurers themselves, key holiday let insurance considerations include:

• Providing accurate information: take reasonable care to answer your insurer's questions accurately and comply with the disclosure requirements that apply to you and your policy. Notify your provider of relevant changes to your property or circumstances where required.

• Evidencing your claims: where reasonable, insurers may ask for evidence in the event of a claim. For example, evidence of bookings, payments or other relevant circumstances may affect how a claim is assessed, depending on the circumstances and the terms of your policy.

• FCA regulation: insurers regulated by the FCA are bound by applicable regulations. If you are not happy with your holiday let insurer's final decision, you may be able to complain to the Financial Ombudsman, subject to eligibility.

Visit Pikl's page for holiday home insurance if you want to get a quote for your second home.

Holiday let tax rules

There are various tax rules that may apply to holiday lets, so consider your own situation carefully. The following is a brief overview that may apply to holiday let owners, but speak to a tax specialist for specific or up to date advice:

• Furnished holiday let tax: as discussed in our new rule changes section, the Furnished Holiday Let tax regime has been abolished. From April 2025, the previous tax reliefs for qualifying furnished holiday lets no longer apply.

• VAT: depending on your taxable turnover and circumstances, you may need to register for and pay VAT.

• Business rates: holiday lets may be subject to business rates rather than council tax where the relevant conditions are met. If a property does not meet the criteria for business rates, council tax may apply instead. Rules and qualifying criteria vary across the UK.

• Council tax: as discussed earlier, changes from 1 April 2025 mean that councils in England have the ability to charge a council tax premium of up to 100% on some second homes. There may be exemptions in some cases, however.

Holiday let mortgage rules

Like tax relief, mortgages for holiday lets may be complex, so you may want to seek professional advice based on your circumstances. As a general guide, consider:

• Getting an appropriate 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. Speak to your existing provider before making any changes.

• Qualification criteria: lenders may have specific criteria such as earnings or the size of deposit required.

• Mortgage terms: like a residential mortgage, your holiday let mortgage may be subject to a number of terms and conditions, such as rules around insurance and payments. Take the time to read through these carefully.

General regulations and restrictions

There are additional restrictions that can sometimes apply to rented properties. The rules and terminology may vary depending on where the property is located. Below is an overview of some of the key areas that may apply to you.

• Subletting restrictions: if you are a leaseholder, check the terms of your lease to see whether short-term letting is permitted or requires consent. Breaching the terms of a lease may result in enforcement action and, in serious cases, proceedings that could ultimately put your lease at risk. If you are a tenant, you may also need permission from your landlord before subletting the property.

• Restrictive covenants: in England and Wales, restrictive covenants may prevent certain activities or changes being made at the property. If your deeds have a restrictive covenant such as a rule preventing you from renting the property out, breaching this agreement could expose you to legal action from another party entitled to enforce it. Removing or varying a restrictive covenant can be a complex process, so check whether your property has one or consult a solicitor if you're not sure. Different rules and terminology apply elsewhere in the UK.

• Council fines and enforcement: holiday let owners may also want to take reasonable steps to reduce the risk of repeated noise or nuisance. Neighbours can make complaints and councils have powers to issue abatement notices where a statutory nuisance exists. Failure to comply with an abatement notice can lead to prosecution and fines.

• TV licences: a TV Licence may be required if guests can watch or record live TV on any channel or service, or use BBC iPlayer. Visit the TV Licensing website for more details.

How to stay on top of regulations

There are a lot of different rules and requirements to consider as a holiday let owner. To help stay on top of them, consider the following:

• Make an action plan: write down what you need to do and set reminders where needed. If you are new to holiday letting, check out our guide on starting a holiday let business. Some actions may come at a price, so make sure you're aware of general holiday home running costs. Our holiday let calculator could help you work out how much you could earn after these costs are deducted.

• Utilise experts: areas such as tax, finance and safety may be tricky subjects to navigate. If in doubt, consider speaking to a qualified specialist where necessary.

• Use reputable sources: use websites with recognised authority, such as government websites, when looking for information.

• Contact your local authority: in many cases, local authorities such as your council can point you towards relevant information on subjects such as local restrictions and planning.

• Stay informed: new rules for holiday lets have come into force and others may arise in the future. Keeping on top of changes can help you prepare for new requirements.

If you have any queries about cover, get in touch with the Pikl team today.