A Guide to Holiday Let Costs
Letting a holiday home can be a profitable and rewarding venture, but to make it successful, you need to...
by Janine de Lange / Owner
As an owner, it is essential that you are familiar with the most up-to-date and relevant holiday let regulations. These legal requirements are there to protect you, your guests and your property.
There are a number of holiday letting rules that must be adhered to for the safe running of your business. Whilst some laws might be obvious, others are less so. We’ve provided some guidance and useful information to help owners understand the legal requirements of holiday letting.
If you’d like to learn more about holiday letting in Cornwall, complete the form at the bottom of this page to request your free Owner Guide.
Use the quick links below to read about a specific topic, or carry on reading for our comprehensive guide on holiday let rules and regulations:
Letting any property means that you are obliged to adhere to certain rules and regulations. However, there are different holiday let requirements for renting a property on a long-term basis than for a short-term period. So, it’s important to understand what is classed as a holiday let.
A holiday let is a self-catering property that is rented out to guests for short periods. This can be anything from a few days to a calendar month. A holiday let is usually furnished and decorated to a high standard and equipped with everything needed for a stay away from home.
A Furnished Holiday Let (FHL) was a specific category of rental property that allowed owners certain tax advantages and benefits. The FHL scheme came to an end in April 2025, meaning that the associated tax advantages no longer apply.
To qualify as a Furnished Holiday Let, owners were required to meet specific criteria and occupancy conditions.
For more information about the old FHL scheme and how holiday let tax has changed, read our blog on furnished holiday let tax.
Boquio Farmhouse
Understanding holiday let regulations is essential for protecting your guests, safeguarding your property and ensuring your business remains compliant. As a holiday let owner, you have a duty of care to provide safe accommodation and minimise potential hazards wherever possible.
One of the most important holiday letting requirements is carrying out regular property inspections and risk assessments. It’s also good practice to provide guests with a guest information folder containing important safety information, emergency contact details, appliance instructions and guidance on using any facilities safely.
Some health and safety actions you can take include:
As an owner, you should always follow the correct holiday let health and safety guidance and have any maintenance work done by competent professionals. By ensuring your holiday cottage is a safe environment, both you and your guests can relax in the knowledge that potential risks have been minimised.
To help you with a risk assessment and plan of action for your property, the Health and Safety Executive (HSE) has resources for businesses.
Fire safety is one of the most important holiday letting rules. Since 1 October 2023, all holiday let owners in England and Wales must complete and maintain a written fire risk assessment. The assessment should identify potential fire hazards, evaluate risks and record the measures in place to protect guests.
Holiday lets must also comply with fire safety legislation, including providing suitable fire detection systems, maintaining clear escape routes and ensuring guests know what to do in the event of a fire.
For more detailed information, read our guide to holiday let fire regulations or go to the Gov website.
Holiday let owners are responsible for ensuring all electrical installations and appliances are safe for guest use. Under the lectricity at Work Regulations (1989), electrical systems must be maintained to prevent danger.
Although an Electrical Installation Condition Report (EICR) is not always a specific holiday let requirement, obtaining one at least every five years is strongly recommended. Regular inspections can help identify faults before they become a risk to guests or property.
We recommend you follow good practices to ensure the safety of your guests and make sure:
As the holiday let business owner you also have a responsibility to:
For more information on Holiday Let Electrical Safety Requirements, look at the Health and Safety Executive Guidance.
Portable Appliance Testing (PAT) is also considered best practice. While not a legal requirement in England and Wales, annual PAT testing can help demonstrate that electrical appliances supplied for guest use are safe and well maintained.
A PAT test should be carried out by a qualified electrician on an annual basis and each item should be labelled as a pass or fail as well as the date the test was carried out. Records of inspections should be retained as evidence of compliance.
We recommend you keep a record of each inspection to show that all procedures are being followed. If you work with a holiday letting agent like Cornish Cottage Holidays, we will often request a record of your annual PAT test documents as a way of knowing everything is up-to-date.
If your holiday let contains gas appliances, you must comply with the Gas Safety (Installation and Use) Regulations 1998. Gas appliances, pipework, chimneys and flues must be maintained in a safe condition.
Owners should arrange annual inspections by a Gas Safe registered engineer and obtain a valid Gas Safety Record (CP12 certificate). Maintaining up-to-date records helps demonstrate compliance and provides reassurance for guests.
Holiday lets must be equipped with appropriate carbon monoxide alarms where required. Carbon monoxide is a colourless, odourless gas that can be extremely dangerous if undetected.
Alarms should be installed in accordance with current regulations and manufacturer guidance, tested regularly and maintained to ensure they remain in working order.
Kitchens are another place where they should be installed, if you have a gas appliance. For more information, check out the Q&A booklet for landlords on the GOV website.
Holiday cottages with hot tubs and swimming pools are more popular than ever, often increasing bookings and income. But both can become a risk to guests if they aren’t maintained and adequate safety measures aren’t put in place.
As with other potential hazards in your holiday let, you should undertake a thorough risk assessment of your swimming pool or hot tub. Make sure you understand how to operate and maintain these for your guests.
Follow the HSE swimming pool health and safety guidelines for additional tips to keep your property safe for guests.
The Health & Safety Executive has published guidance on hot tub safety for anyone responsible for managing one as part of a business activity. To comply with holiday let regulations as well as limiting the risk of infection, you will need to ensure that the hot tub you purchase is HSG282 Compliant.
You will need a TV license for your property if you have a device where guests can watch or stream live TV. Holiday lets require a special type of TV license called a Hotel & Mobile Units Television License. Visit the TV licensing website for more information.
A single TV license costing £169.50 will cover up to 15 accommodation units on an individual site. If you have more than one holiday cottage in different locations, you’ll need a separate license for each property.
If you provide a selection of DVD’s for your guests to use, you will also need a license. Providing films to paying guests without a license is an infringement of copyright law (the Copyright, Designs and Patents Act 1988).
Letting out your holiday home to guests means you are responsible for ensuring that not only is your property protected, but your guests are taken care of should anything happen.
A standard home insurance policy is not sufficient to cover your holiday let. You’ll need to get a specialist policy that will cover a multitude of elements that a regular home insurance won’t.
Policies typically cover accidental damage, loss of rent as well as periods when the property is unoccupied. Although not a legal requirement, having public liability insurance cover of £2 million per event, is also an advisable requirement for running a holiday let business. At Cornish Cottage Holidays, we require owners to have this level of public liability insurance cover before joining us.
Many owners consider providing complimentary drinks in their holiday let welcome pack. As first impressions go, it seems relatively simple to welcome guests to your property by providing a bottle of wine or locally brewed beer. But many owners may not be aware of the alcohol licensing laws when providing alcohol in a welcome pack.
The 2003 Licensing Act states that you must have both a Personal License and a Premises License in order to provide alcohol. This is even the case if you have provided it as a gift and no monetary transaction takes place, as it’s seen as part of the cost of the rental, rather than free of charge.
Read our blog on alcohol licensing in your holiday home for more information on how to ensure you’re aware of the relevant legislation.
Holiday lets require a specialist mortgage. A traditional residential mortgage will not be suitable. A holiday let mortgage is specifically designed for an owner to borrow money to buy a property that will be both for personal use, and ashort-term accommodation for holiday guests.
Understanding the difference between the types of mortgages available to you as a holiday home owner is imperative. There are implications involved with offsetting costs against profit, as well as far more stringent assessment criteria if applying for a buy-to-let.
Read our guide on financing a holiday home to find out more about holiday let mortgages.
Self-catering properties will be liable for paying either council tax or business rates. Whether you pay business rates on your holiday let is dependent on how many days your property is available to let and occupied each year.
If you do not qualify to pay business rates, you will need to pay council tax until the property meets the eligibility rules.
If you want to know more about how much tax you would need to pay in Cornwall, visit the Cornwall Council website.
Purchasing any property that is in addition to your main residence will have an additional Stamp Duty charge known as Higher Rates on Additional Dwellings tax (HRAD).
This form of tax starts at 5% and rises in bands, climbing to 17% for the most expensive properties. Read our blog on holiday let tax for more details.
While there is no legal requirement to have a business bank account for your holiday let, it is essential to keep an accurate account of income and expenditure relating to your business. The easiest way to do this is to have a business bank account.
Having a business bank account makes it easier to track income and expenses, all of which must be declared to Inland Revenue (HMRC). Keeping your holiday let finances separate, in a designated account, will make it easier to manage.
Read our guide to holiday let costs to get a better idea of what expenses you should expect to budget for.
Within the UK and Ireland, there are different rules to follow regarding new and refurbishment works. Make sure that your builder is aware of the current rules and regulations.
Planning permission is generally not required when buying and running an existing holiday let. It may however be applicable if you’re starting a new business, converting or extending your property.
Holiday let regulations are continuing to evolve across the UK, with some local authorities introducing registration, licensing or planning controls for short-term accommodation. Before carrying out development works or starting a new holiday letting business, contact your local planning authority to confirm any requirements that may apply.
For more information, read the official government guide to planning permission or visit the planning portal to find out whether you’ll need an application.
Finding the right holiday letting agency in Cornwall for expert advice and support can make all the difference with achieving holiday let success. With over 800 self-catering cottages in locations throughout Cornwall, we at Cornish Cottage Holidays have the expertise and industry know how to help you run your holiday letting business.
We want letting your holiday home to be as enjoyable and effortless as possible for you, so we’ve created some helpful blogs to answer any queries that you may have. Simply visit our owner advice page to find out more.
If you’d like to learn more about letting your holiday home, complete the form below to request contact from our team. You’ll also receive a copy of our FREE Owner Guide.
* The information contained in this article was accurate at the time of writing, based on our research.
As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
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Interested in letting a property outside of Cornwall? We’re proud to be part of Sykes Holiday Cottages, with a network of regional brands offering the same award-winning service across the UK. Enquire now to be put in touch with your local holiday letting experts.
Find out how we can work together. With over 25 years’ experience, our local expertise will give you peace of mind and bring you the bookings you deserve.
by Janine de Lange / Owner
I’ve had the privilege of living in the beautiful South West since 2010, and in my opinion there’s no better place in the worl...
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