A consultation is underway which may ease pressure on holiday let landlords.
Currently, holiday let properties must be available to rent for at least 252 days a year and actually booked for a minimum of 182 days to qualify for business rates.
Properties that don’t reach the occupancy thresholds are usually treated as domestic second homes instead, which can result in substantially higher council tax charges, including premiums of up to 300% in some areas.
The rules were introduced to distinguish genuine holiday let businesses from second homes. However, many operators argue the current thresholds don’t reflect the realities of tourism, particularly in seasonal destinations.
But the consultation ponders a modest but unspecified reduction to the current 182-day threshold.
The consultation is also considering exempting holiday lets that form part of wider tourism businesses, large multi-unit accommodation, properties with planning restrictions limiting permanent occupancy, and self-catering units located within an owner’s home grounds or on a working farm, provided they continue to operate as commercial holiday accommodation.
Phil Schofield of insurance provider Schofields welcomes the possible change.
He says: “While the changes wouldn’t solve every challenge facing the sector, they could ease some of the financial pressure on smaller, family-run businesses that rely on seasonal tourism.
“If the rules become more flexible, many owners may no longer feel the need to chase every possible booking simply to avoid a substantial council tax bill.”
He suggests that while the consultation goes on, owners should continue planning around the current requirements and do everything they can to meet them.
“If you’re concerned about reaching the threshold this year, now is a good time to focus on attracting bookings outside the traditional peak season.
“Discounted autumn and winter breaks, shorter weekend stays, dog-friendly accommodation, and targeting niche audiences such as remote workers can all help increase occupancy.
“It’s also worth reviewing your marketing strategy. Don’t rely on a single booking platform. Keep your listings up to date, invest in high-quality photography, respond promptly to enquiries and encourage guest reviews, as these can all have a real impact on bookings.”
This article is taken from Landlord Today