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Investing in a Holiday Let in the UK

The old tax advantages ended in April 2025.

Investing in a Holiday Let in the UK Property Investment & Wealth Building

Updated October 2026 · Fraser Bond

Investing · Holiday lets

Holiday let investment

FHL regimeabolished
Occupancy& seasons
Localrestrictions
Mgmtcosts
In short: Holiday lets can earn more per week than long lets, but income is seasonal and management costs are high. The special furnished holiday lettings tax regime was abolished from April 2025, so holiday lets are now taxed much like other residential lets, including the restriction on mortgage interest relief. Some areas restrict new short lets, charge council tax premiums on second homes or require planning permission, and in London whole-home short lets over 90 nights a year need permission. Model realistic occupancy before buying.

Frequently asked questions

Do holiday lets still get tax breaks?

The FHL regime ended in April 2025.

Can I short-let in London?

Up to 90 nights a year without permission.

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