Editor's note: This brief was summarised by The Property AI Newsroom from a report by Landlord Today. Read the original article for full details.

Government May Ease Controversial Holiday Lets Thresholds

A government consultation is underway which may ease pressure on holiday let landlords, according to a report by Landlord Today. The review could change the occupancy thresholds that determine how holiday let properties are classified for business rates purposes.

Under the existing rules, 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 miss these thresholds are usually treated as domestic second homes instead.

Why the thresholds matter

The distinction between a holiday let qualifying for business rates and a property being treated as a domestic second home carries significant implications for landlords. The current thresholds have proved controversial within the holiday let sector, and the consultation may result in that pressure being eased.

What this means for agents and clerks

For UK letting agents and inventory clerks working with holiday let clients, any change to the thresholds could affect how properties in their portfolios are classified and rated. Agents advising landlords with short-let properties should be aware that the rules governing eligibility for business rates may change following the consultation.

At this stage, the consultation is ongoing and no outcome has been confirmed. Landlords and agents with an interest in the holiday let sector may wish to follow developments as it progresses.