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. To end a tenancy, a landlord now needs a valid possession ground and must follow the process prescribed for it.
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. Regaining possession is no longer something a landlord can do without establishing a ground and following the prescribed steps, so repositioning a property quickly is harder to count on than it was.
That is a reason to reassess a property, not automatically a reason to move it into short-term letting. The Act changes the calculation; it does not settle it. What settles it is the property itself — location, character, capacity, amenities and the guest demand around it decide which model actually suits it, far more than the choice of tenure does.
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 6 April 2025 for Income Tax and Capital Gains Tax, and from 1 April 2025 for Corporation Tax. Income from short-term holiday accommodation and self-catering properties is now taxed under the usual residential landlord rules, and 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. A national registration scheme is coming. A separate planning use class for short-term lets has been proposed but has not been implemented, so it is a direction of travel rather than a rule to plan around today. Owners still 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.
Matthew’s view: what this means for the market
Matthew · Founder, South House
The Renters’ Rights Act does not suddenly make long-term letting a bad investment, nor does it make short-term letting the obvious alternative.
What it does do is change the calculation.
For landlords who have historically valued flexibility, the ability to regain possession relatively easily was part of the attraction of the private rented sector. That flexibility has reduced. At the same time, costs, compliance requirements and taxation across property investment have continued to increase.
I think that will cause more landlords to look much harder at what each property is actually capable of doing.
Some will remain excellent long-term rentals. Some owners will decide to sell. But properties in strong visitor locations, with the right layout, character and guest appeal, may increasingly be considered for professionally operated short-term or medium-term accommodation.
That does not mean putting a property on Airbnb and expecting it to perform.
The short-term market is becoming more competitive and more professional. Generic properties competing mainly on beds and price will find it harder. The properties that outperform will increasingly be those with a clear reason to book: great location, strong design, useful amenities, the right capacity and a well-defined guest market.
For Sussex, I think the result will be a gradual reshuffling of supply rather than a wholesale exodus from long-term renting. Better landlords will become more deliberate about which tenure suits which property, while the short-term market itself will continue moving away from amateur hosting towards properly managed hospitality businesses.
That is ultimately healthy for both markets.
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.