Latest news with #shorttermlets
BBC News
4 days ago
- Business
- BBC News
'Airbnb bill' aimed at taxing Cornwall's second homeowners
A bill proposing a law change aimed at second home owners looking to "dodge council tax" has been presented to parliament by a North Cornwall the "Airbnb Bill", it proposes homeowners be required to seek planning permission before short-term letting their Democrat MP Ben Maguire said it would "close a loophole" which allowed property owners to avoid council tax by reclassifying their second homes as business Brown, CEO of Cornwall Chamber of Commerce, said the bill "was not a silver bullet, but a start". 'Tougher regulation' Mr Brown added: "It must sit alongside tougher regulation and a robust registration system for short-term lets. "If it deters those looking to extract profit from Cornwall without putting anything back — good. "If it helps restore housing stock for local people, even better. "And if it ensures our hospitality and tourism sectors can find workers with secure housing, then it's a win for all of Cornwall.".Describing a "surplus" of Airbnb homes, he said there were 14,000 second homes in the county, while 22,000 people were on the housing waiting list. The bill follows a campaign led by Mr Maguire, who put the proposal directly to the Housing Minister in order to "deliver deep change for North Cornwall".He added: "The bill is about restoring fairness in our system and giving local people a better chance at owning their own home," he added. Double council tax In January 2023, Cornwall Council approved plans for owners of second homes in the county to be charged double council September 2024, Airbnb called for Cornwall Council to be given more data, powers and tools to regulate short-term US online rental platform said it had written to local MPs and councillors across Cornwall to inform them of its support for new rules being implemented in the also said it also supported the introduction of a registration scheme for people who wanted to let their homes to BBC has contacted Airbnb and the The Ministry of Housing, Communities and Local Government for comment.
Telegraph
01-06-2025
- Business
- Telegraph
‘I can earn £200k more a year': why landlords are switching to short-term lets, and how to join them
When Jay Allen secured the winning bid on Otherton Hall at auction, he had no idea how he was going to turn the 8,500 sq ft derelict farmhouse into a profitable business. Set on green belt land in the Staffordshire countryside town of Penkridge, the Grade II-listed property surrounded by protected wildlife species cost Jay £355,000. 'When I bought it, I didn't have a clue of what we were going to do with it,' says Allen, 42. 'I liked it, and I thought that some idea would develop.' Luckily for Allen, one did. He has since turned Otherton Hall into a luxury countryside retreat that can be let as a whole to holiday makers for block bookings. Short-term lets have the potential to generate much higher earnings than single buy-to-lets, says Allen, although planning permission was required to convert the property into eight suites, with a new-build extension on the side to house a swimming pool. This took a year to be granted, given the extra hoops to jump through with the presence of species such as the great crested newts and European long eared bats on the grounds. It took a further year for the conversion to complete. As the owner of a construction company and other investment properties, Allen had the resources and know-how to transform the building into a high-end holiday home – with a basement bar and games room that caters for up 16 people in a single stay. 'Rents are a lot higher on short-term lets compared to an AST [assured shorthold tenancy],' says Allen, who lives with his wife Anoushka, 41, and their two children in nearby Cannock. 'For the Christmas week we can get around £12,000. Although it sounds like a lot, when it's split between 16 guests per night it's not as bad as it sounds.' Over 12 months, Allen earns around £250,000 to £280,000 in gross income from the property, and spends around £120,000 a year to cover finance and running costs. If he had split the building into four apartments to rent out instead, he estimates he would collect a maximum of £60,000 a year. How to turn your property into a holiday let If you're considering converting a property into short-stay accommodation, rather than a traditional buy-to-let, you'll need to weigh up the pros and cons. This Telegraph Money guide will cover: Steps to consider 1. Research the market First, you'll need to think about location. Where you start searching could be dictated by the type of occupants you want to attract, and the letting model you plan to adopt. A traditional holiday let is rented out for one to two weeks to holiday makers in rural or coastal settings. Demand for these properties is high, says Jorden Abbs, chief executive of Commercial Trust: 'Since the pandemic, the number of people holidaying in the UK grew significantly and even after travel restrictions eased, the public had been exposed to how great it is to holiday across the UK and the holiday let sector has remained in strong demand.' Alternatively, you might consider providing serviced accommodation, which is often let for just a couple of nights to companies for their employees, and tends to be city-based. 2. Weigh up the finances If you own a buy-to-let property that you are considering converting to short-stay accommodation, do the sums to make sure it's a worthwhile venture. While holiday lets typically generate more income than a buy-to-let, it isn't guaranteed. Plus, you must factor in higher conversion and running costs, which will eat into your profits. Andrew Soye, director and founder of Holiday Cottage Mortgages, said: 'Yes, it's true you can earn a much greater income from a holiday let, but it must be the right property, with the right features in the right location. 'Investors use a rule of thumb that says if you can purchase a property where the rent divided the purchase price is around 10pc, then your holiday let stands a good chance of being a success.' 3. Factor in mortgage costs If you need to borrow money to buy the property, the type of short-stay accommodation you plan to run will impact the availability and cost of your mortgage. Holiday let lending has grown over time, says Mr Abbs, but some lenders will not accept serviced accommodation where the property is offered for a number of days, rather than week-long bookings common with traditional holiday lets. Getting the mortgage can be a complex process, so it can be a good idea to ask a mortgage adviser to help you. 4. Check out planning permission The introduction of a new use class for holiday lets in England has been discussed, but no action has yet been taken. If it were introduced, this would mean that planning permission would be needed even if no structural changes had been made. London, however, has its own rules. If you plan on letting out a residential property on a short-let basis for more than 90 days you will need to apply for planning permission first. In Wales, local authorities have the power to insist planning permission is sought using the same powers councils have to restrict the conversion of homes into a House of Multiple Occupation (HMO). Gwynedd council is the only local authority to take this step so far. In addition, owners of leasehold flats in England or Wales must always check if the freeholder has any restrictions in place that stop you letting the property as a holiday or short-term let. Anyone making structural alterations to a property should seek advice on planning permission before going ahead. Advantages of short-term lets You can increase your earning potential The main advantage of short-term lets is the increased earning potential, when compared to traditional buy-to-lets. It's the reason why property investor Ben Smith* decided to pay thousands to convert his latest investment to short-stay apartments. With the potential to earn 300pc more a month from two serviced apartments let to business travellers and holidaymakers, compared to renting out the property as a three-bedroom home, for him the short stay route was the obvious choice. Living in Brighton with his soon-to-be-wife and their three children, Smith employed sourcing agents to scour cities and towns such as Birmingham, Leeds, Stoke and Crewe to find off-market investment opportunities with good earning potential. When presented with a three-bed house in poor condition available below market value in Crewe, Cheshire, Smith 'ran the numbers'. Their decision to buy in Crewe – which is not a typical holiday destination – was strategic. Having a property here allows Smith to cash in on not just weekend stays, but business travellers throughout the week. He calculated that the conversion costs to transform the rundown house into high spec apartments would be around £80,000, double that of a straightforward refurbishment to let the property as a home. The income the apartments could generate made it a risk he and his wife were prepared to take – but they'll still need to wait a few years until these costs are covered. Smith said: 'Because of the amount of money we've put in to converting them into flats, if we sell them both now we wouldn't have made a penny on the refurbishment. 'But what it's allowed us to achieve in monthly gains over and above what we would have done as a residential house, over the course of a few years it will more than pay us back – and that's where the benefit is.' Renters rights do not apply Unlike with buy-to-let properties, occupiers of holiday lets or serviced accommodation do not have a right to reside there. Mr Soye said: 'With holiday lets, the legal basis of occupation is called a 'licence to occupy', which means guests effectively have no rights. If they refuse to leave, you can call the police.' With more stringent regulations in the form of the Renters Rights Bill on the way, which will make it harder for landlords to evict tenants, this could be a welcome benefit for some investors. However, it doesn't mean holiday lets are rule-free. Depending on where your holiday let is based, you may be subject to a licensing scheme to make sure you abide by certain standards. This is already set up in Scotland, while Wales is moving towards the same goal. The development of a digital short-term let registration scheme in England is underway, and testing is planned to start in the next 12 months. You can enjoy your investment Many investors choose this route as the owners of holiday lets can stay in their own accommodation whenever it's not being let out. Of course, the more time you spend there the less money you'll earn from your property. Drawbacks of short-term lets Higher conversion and running costs While there is potential to make more money from renting out a holiday let, the conversion to get the property ready could be pricey – and the upkeep can be more expensive than what you'd expect to pay for a buy-to-let. Allen spent £1.65m on the conversion of Otherton Hall and spends around £10,000 for expenses like the mortgage, cleaning and ongoing maintenance. 'Everything needs to be immaculate if you want great reviews,' he says. 'It's not a set and forget kind of business that keeps bringing you in money every month, it's more hands on than that.' He added: 'Just to do the laundry after each changeover costs £400.' While an eight-bedroom farmhouse is an extreme example of how high running costs can be, all holiday let owners are responsible for utility bills and council tax, where applicable, or business rates – costs that landlords do not need to shoulder. And housekeeping is entirely the responsibility of the owner, a cost borne by the tenant when there is a traditional tenancy in place. Success hangs on location It's important to bear in mind that not every property that is converted from an owner-occupied home or buy-to-let into short-stay accommodation will be a success. It will likely hinge on whether there is demand for your property from holiday makers, or business travellers who need to be close to transport links and major cities. This is why the market research step is so important. No longer preferential tax treatment Until April 5, owners of furnished holiday lets who bought the property in their personal name could deduct their mortgage interest from their rental income before calculating their tax liability. This right has now been removed and replaced with a 20pc tax credit, putting them on an equal footing with other buy-to-let landlords. However, owners who buy properties within a limited company do still have this right. If you decide to move your properties from your personal name into a limited company, you must pay stamp duty as you are effectively selling the property to your limited company – so take tax advice first. This was just one of the changes made when the furnished holiday lettings tax regime was abolished this April. Others include the removal of beneficial capital allowances. *Names have been changed
Daily Mail
23-05-2025
- Daily Mail
Do YOU live in an Airbnb hotspot? Map shows the parts of the UK most dominated by short-term lets
Top beauty sites and London 's historic boroughs were among Airbnb hotspots last year, new figures have shown. A MailOnline analysis reveals how the City of London, Westminster, and Kensington and Chelsea had the highest rates of Airbnb stays in England and Wales in 2024. This was followed by Gwynedd, which contains much of Snowdonia, Camden, Cotswold, Derbyshire Dales, and Pembrokeshire. Westmorland and Furness, which includes the Lake District, and Isle of Anglesey completed the top 10 areas with the highest rate of Airbnb stays per population. Cornwall, North Norfolk and North Devon were just outside the top 10 areas in England and Wales. A wider analysis, conducted by the Office for National Statistics (ONS), showed there were a total of 90.1 million guest nights spent in short-term lets in the UK in 2024. This data revealed the number of apartments or rooms booked through Airbnb, and Expedia - but excluding hotels or campsites. The ONS found more than three-quarters (78 per cent) of guest nights spent in short-term lets in the UK last year were in England. A wider analysis, conducted by the Office for National Statistics ( ONS ), showed there were a total of 90.1 million guest nights spent in short-term lets in the UK in 2024 This compared to 12.7 per cent in Scotland, 6.9 per cent in Wales, and 2.4 per cent in Northern Ireland. But, according to the ONS analysis, the number of stays was strongly affected by the seasons. Almost 15 per cent of the total number of guest nights across the year were in August (12.8 million), which was the most popular month for stays. This compared with just 4 per cent in January (3.7 million guest nights). The UK local authorities with the highest number of stays in short-term lets in 2024 were Westminster (3.9 million), Cornwall (3.4 million), Edinburgh (3 million) and Highland (2.6 million). Major cities such as Birmingham, Liverpool and Manchester were also popular for stays, as was North Yorkshire and the Lake District. The ONS analysis showed guest nights were concentrated in relatively few local authorities, with a quarter (26 per cent) of all UK guest nights in 10 local authorities. It also revealed that guest nights were not evenly distributed within areas of the UK. For example, Hammersmith and Fulham had 899,610 guest nights in short-term lets in 2024, compared with 154,690 in neighbouring Richmond upon Thames. In Wales, there were 1,156,590 guest nights in Gwynedd in 2024; but next-door Ceredigion had only 353,850. The average length of stay in short-term lets in Westminster was four days in 2024. Compared with other local authorities, where the number of guest nights rapidly increased over summer, short-term lets in Westminster were relatively consistent. The most popular month of July (416,390) had only twice the number of guest nights as January (210,880), the lowest month. More than four in five guests (81.4 per cent) staying in short-term lets in Westminster in 2024 were international. By contrast, guest nights in Cornwall were found by the ONS to follow a more pronounced seasonal pattern. In the summer months, Cornwall overtook Westminster as the place with the highest number of guest nights in the UK. The August figure for Cornall (803,920) was almost 23 times the UK average guest nights (35,430) at that time. Most people staying in short-term lets in Cornwall were domestic visitors, with only 16.2 per cent being international guests. Of the guest nights recorded in Edinburgh, 411,900 (13.6 per cent) were in August when the city hosts the Edinburgh fringe festival. Of the four UK nations, Scotland had the largest proportion of guest nights by international guests in 2024 (45.8 per cent). But there were different findings at local authority level. Of the top 15 areas with the highest proportion of guest nights by international guests, 14 were in London. City of Edinburgh (67.4 per cent) was the only local authority outside of London to feature. The number of guest nights was calculated by multiplying the number of nights spend during a stay by the number of visitors in the travel party.
