Short-term lets have gained popularity among landlords seeking higher yields and greater flexibility. Platforms like Airbnb and Vrbo have made it easier to market properties to a broad audience, potentially increasing occupancy rates and income. In tourist hotspots and urban centers, short-term rentals can command premium rates, especially during peak seasons.  

Regulatory considerations 
However, the landscape is shifting. The UK government has introduced measures to regulate the short-term rental market more closely. The Levelling-up and Regeneration Act 2023 includes provisions for a national registration scheme for short-term lets, aiming to provide local authorities with better data and control over the sector. Additionally, from April 2025, tax reliefs previously available to furnished holiday lettings will be removed, aligning their tax treatment with that of long-term rentals. 

Market dynamics and challenges 
While short-term rentals can be lucrative, they come with challenges. The market is sensitive to external factors such as travel restrictions, economic downturns, and seasonal demand fluctuations. Moreover, increased competition in popular areas can lead to price wars and reduced occupancy rates. Landlords must also consider the operational aspects, including cleaning, maintenance, and guest communication, which can be more intensive than traditional lettings.  

Making an informed decision 
Before transitioning to or investing in short-term rentals, landlords should conduct thorough market research. Assessing local demand, understanding regulatory requirements, and calculating potential returns versus costs are crucial steps. Engaging with property management professionals who specialize in short-term lets can also provide valuable insights and support.  

 
Evaluate if short-term letting aligns with your property goals