What Are the Legal Requirements for Holiday Lets?
There are several things you need to ensure you have in place when renting out a holiday property.
What Is a Holiday Let?
Legal Requirements
A holiday let, also known as a holiday cottage, short term let, is a type of accommodation that is rented out to travellers and tourists for short-term stays during their vacations or holidays. This can be anything up to 28 days.
Holiday lets can vary widely in terms of size and amenities, and they can include a range of accommodations such as:
- Holiday homes: These can be standalone houses, cottages, or cabins that are fully furnished and equipped for guests to stay in during their holiday.
- Apartments: Holiday apartments are typically located in multi-unit buildings and provide a more compact accommodation option.
- Stately Homes: Stately homes are often larger and more luxurious properties, often with private amenities such as pools and gardens, and they are popular in many vacation destinations.
Holiday lets are typically…
- Rented on a short-term basis, ranging from a few days to several weeks, and they are an alternative to traditional hotels or B&B’s.
- Often booked through online platforms and holiday agency websites, making it easier for holiday makers to find and reserve accommodations that suit their needs and preferences.
- A popular choice for families, groups of friends, or anyone looking for a more home-like environment during their holiday. It’s like being home from home.
What Are the Legal Requirements for Holiday Lets in the UK?
The legal requirements for holiday lets in the UK can vary depending on the location and specific circumstances, but there are several key regulations and considerations that holiday let owners should be aware of.
We’ll look at each below…
Planning Permission
In some cases, you may need planning permission to use your property as a holiday let, especially if it involves a change of use from a residential or commercial property.
Regulations can vary by local authority, so it’s essential to check with your local planning department to determine whether you need permission. Some houses in The Lakes have a local occupancy clause and these properties should not be used for letting or any business, they have this clause on them to keep them within the local community.
An Annual Gas Safety Certification
A Landlords Gas Safety is one of the most important pieces of compliance a property can have. It is to ensure the gas, boiler and any other gas appliance are all tested to be safe. We can give you some great recommendations of local gas safe plumbers in the area.
“You are responsible for ensuring an annual gas safety check is carried out within 12 months of the installation of a new appliance or flue which you provide and annually thereafter by a Gas Safe Registered engineer”
– hse.gov.uk
Health and Safety
Owners of holiday lets are responsible for ensuring the safety and well-being of guests.
This includes
- Providing information about emergency procedures.
- Contact details of emergency services and local important services.
- And any specific safety instructions related to the property.
Insurance
It’s crucial to have appropriate insurance for your holiday let.
Standard home insurance may not cover short-term rentals, so you should consider specialised holiday let insurance. This needs to cover your property and a public liability no less than £5 million.
Taxation
Income generated from holiday lets is subject to taxation.
In the UK, you may need to pay income tax on the rental income – You should consult with a tax advisor or HM Revenue & Customs (HMRC) for guidance on tax obligations for holiday lets.
With the new changes to FHL tax abolishment we will keep you as up to date as we can with new policies but you should consult your accountant.
Short-Term Let Licence
Some areas, particularly in certain cities or tourist hotspots, may require a specific holiday let or short-term rental license. Currently, in The Lakes, we are awaiting more details on holiday let registration to come out, expected at the end of the year.
Regulations can vary so, check with your local authority for any licensing requirements.
What do you need to know about Holiday Let Registration?
5-Year Electrical Test Certificate Undertaken by Professional
Your EICR (5-year electrical test certificate) needs to be conducted by a qualified electrician.
They will test all the wires, sockets and fuse boards to ensure they are safe for you and your guests. This may also be a requirement of your insurance company.
The law says that you must make sure all your electrical installations are safe, and checked every 5 years
Annual Chimney Sweeping
We have a couple of fantastic chimney sweeps in the area we recommend. They service our properties and are always careful to leave your property clean and tidy! The chimney should be swept annually in holiday lets.
“HETAS encourage having your chimney swept at least twice a year when burning wood or bituminous house coal and at least once a year when burning smokeless fuels”
– HETAS
Fire Risk Assessment
Currently you can write your own FRA for your holiday let, given you are a competent person.
We strongly recommend the PASC template which we can send to you if needed.
Likely upcoming changes
Watching how new rules have rolled out in Scotland’s holiday let registration, likely upcoming changes will mean that you can only write your own FRA if you have a house of 3 bedrooms or less, and nothing over more than two floors.
If you have 3+ Bedrooms or 2+ Floors
If the house has 3+ bedrooms, 2+ floors, or an open fire downstairs with no door on the hallway, you must start getting a FRA done by a third party (we can send details of local companies).
Smoke Alarm Checks
We do a monthly smoke alarm check at your property and record it.
New legislation will be on every changeover. With Lakeland Retreats, we have a Housekeeping App which allows our cleaners to check and record smoke alarms on every changeover at your property.
Current Guidelines
The current guidelines are to have smoke alarms in all rooms, including bedrooms.
This can be done by using interlinked models. However, Scotland’s registration has said these interlinked style alarms will only have a grace period of 2-3 years maximum, then you will need hard-wired alarms.
Access Statement
An access statement should be made available to guests to ensure the property is suitable for their needs before booking
The document should be clear and honest, and highlight any areas that could cause access issues for some visitors.
Currently, we are able to help with this template.
If you have concerns, we can help put all of the above in place
It’s important to note that regulations and requirements may change over time, and they can vary between different parts of the UK (England, Scotland, Wales, and Northern Ireland). Therefore, it’s essential to stay up-to-date with local regulations and seek legal advice or consult relevant government agencies when setting up and operating a holiday let to ensure compliance with all applicable laws.
“If you are planning to run a holiday let, it is crucial that you understand your legal obligations. Covering everything from fire safety to property insurance, there’s a number of legislations that you must adhere to, in order to ensure the safety of you, your guests, and potential employees.”
– Holiday Cottage Mortgages
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Whether you’re looking for your dream Lake District cottage, unhappy with your current letting agency, or you’re looking for holiday investment properties in the Lake District we can help.
If there’s anything you’d like to know that we haven’t covered below, please let us know.
