If you let a property in England, the Renters’ Rights Act has changed the way private renting works. If that has made you wonder whether holiday letting is a better fit for your property, it is a fair question. But it needs a proper answer, because holiday letting has changed too.
What changed for landlords
From 1 May 2026, private landlords can no longer use Section 21 no-fault eviction notices for new or existing tenancies in England. Landlords now need to rely on specific possession grounds rather than ending a tenancy without giving a valid reason.
Tenancies in the private rented sector now roll on month to month or week to week, depending on the arrangement, rather than being fixed contracts with a set end date. Rent increases, rent bidding, upfront rent and tenants requesting pets are also part of the new landscape.
Why landlords are looking at alternatives
None of this means long-term letting no longer works. Many landlords will adjust and continue. But the balance has changed. Ending a tenancy can be slower, flexibility is reduced and the property may feel harder to reposition quickly if circumstances change.
Where holiday lets sit
A genuine holiday let is different because guests are staying temporarily rather than living in the property as their main home. That is one reason holiday letting comes up when landlords review their options. It is not a shortcut around the law. It is a different model, with a different set of rules, risks and responsibilities.
The tax position has changed too
The old Furnished Holiday Let tax regime has been abolished. From the 2025 to 2026 tax year onwards, income from short-term holiday accommodation and self-catering properties is taxed under the usual residential landlord rules. The previous FHL tax reliefs no longer apply.
That matters. The case for switching to holiday letting now needs to stand on real rental performance, not on tax treatment that no longer exists.
Short-term lets are getting more regulated
Short-term lets in England are moving towards more oversight, including national registration and planning measures. Owners also need to think about fire safety, gas and electrical safety, insurance, business rates, planning permission and any local rules that apply in their council area.
For Brighton, Hove, Worthing and the wider Sussex coast, the direction is clear: informal hosting is getting harder to justify. Proper setup, compliance and management matter more than they used to.
What switching actually involves
A holiday let is not passive. It needs pricing, guest communication, cleaning, laundry, maintenance, check-in, review management, safety checks, insurance and ongoing attention. Done well, it can be a strong option for the right property. Done casually, it can become a lot of work for uncertain return.
How to assess the real opportunity
Before deciding, look at the property properly. Location, layout, parking, guest type, seasonality, nearby demand, photography, nightly rate, occupancy, cleaning costs, management fees, compliance costs and owner availability all affect the answer.
A flat that works well for a long-term tenant may not work well as a holiday let. A house that looks average on paper may perform strongly because it solves a specific guest problem, such as parking, dog-friendly space, beach access or room for a family.
Review your property’s potential
Benchmark the property against its market and get a clear, prioritised action plan.
Where South House can help
South House can review the property from a holiday let perspective and give you a clear view of whether it is likely to work, what would need to change and what kind of management it would require. Start with the investor page or go straight to a South House Performance Review.