Journal

Holiday Letting Rules Made Simple

Before welcoming guests, it’s essential to understand the full scope of holiday let rules and holiday let regulations that apply to your property.  In this article, we outline the key holiday let health and safety regulations and financial requirements you need to meet before opening your doors to guests.

Are you a new or established owner weighing up your options, or simply need local advice? Contact the team here

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Holiday let health and safety regulations

safety

Buying a holiday home is subject to similar standards as long-term rentals, particularly when it comes to safety and legal responsibilities. All of our owners must ensure their self-catering accommodation complies with current legislation before letting begins. 

While accidents are rare, they can happen, and failing to meet legal standards could result in serious consequences, including legal action.

Complying with holiday let health and safety regulations help to ensure both your guests and your business are protected. Ensuring your property is safe, well-maintained and fully compliant demonstrates professionalism and gives guests peace of mind. 

Gas safety regulations

Meeting current gas safety regulations is a legal requirement for all holiday let owners. You must obtain a valid Landlord Gas Safety Record (also known as a CP12 certificate) and keep copies for at least two years. 

All gas appliances should be inspected by a Gas Safe registered engineer every 10–12 months from the date of the previous check.

While some appliances may have different service intervals, an annual inspection is strongly recommended to ensure ongoing safety and compliance.

Carbon monoxide

Holiday let owners are legally required to install a carbon monoxide alarm in every room containing a fossil fuel appliance, such as a boiler, gas oven or log burner. 

If your property features a log burner or open fire, a popular addition in many self-catering holiday homes, additional precautions are essential: 

  • Have the chimney swept annually 
  • Ensure the hearth is free from cracks or damage 
  • Provide a suitable fireguard, particularly for families with children or pets 
  • Supply appropriate safety equipment, such as fire gloves, long matches or firelighters, and a dedicated ash bucket 

Regular servicing of boilers and appliances by qualified professionals is also vital. 

Hot tub and swimming pool regulations for holiday lets 

Adding a hot tub can significantly enhance your property’s appeal, and even increase revenue by 21%, according to Sykes’ Holiday Letting Outlook Report.  

However, strict hot tub and swimming pool regulations must be followed. 

Before installation, ensure the facilities can be properly maintained and operated safely at all times. For swimming pools, check regularly for loose tiles, secure steps and slip hazards. Hot tubs must be drained, cleaned and refilled between each guest stay. 

Hot tubs must comply with (HSG) 282 guidance to meet health and safety standards. Clear instructions should be included in your guest handbook, covering safe usage, supervision requirements and storage of floats or accessories to prevent hazards. Failure to comply with safety standards could lead to serious incidents and legal liability. 

You can read more about it here: Health and safety around swimming pools. 

Financial responsibilities for holiday lets

Alongside safety compliance, understanding the financial side of holiday letting is equally important. From holiday let insurance to holiday let tax, there are several key areas to consider:

Holiday let insurance

Standard home insurance is not sufficient for a holiday rental. You will need specialist holiday let insurance that covers guest stays, public liability and potential loss of income. Choosing a policy designed specifically for short-term letting ensures you are properly protected. 

Holiday let mortgages

If your property is mortgaged or you plan to purchase using finance, you must confirm that your lender permits holiday letting.  

A standard mortgage will usually require consent to let or conversion to a dedicated holiday let mortgage. Failing to notify your lender could breach your mortgage terms. 

TV licensing for holiday lets

Many owners are surprised to learn that a standard domestic TV licence is not enough. TV licensing for holiday lets requires a Hotel and Mobile Units Television licence. 

You will need this licence even if programs are watched on mobiles, laptops or tablets. 

Holiday let council tax rates

If your property is available to let for at least 140 days per year, it may need to be registered for business rates instead of standard council tax. In some cases, you may qualify for Small Business Rates Relief, reducing your overall liability. 

From the date of the latest Budget announcement (26th November 2025), if you expand your holiday let business from one property to two and already qualify for Small Business Rates Relief (SBRR), you will now retain eligibility on your second property for up to three years – an increase from the previous one-year limit. 

Holiday let taxation can be complex, so seeking advice from a qualified accountant is often a worthwhile investment to ensure compliance and maximise efficiency. 

It is very important that you declare all earnings when filing your annual return to HMRC. 

It can be a bit tricky to do yourself, so we recommend investing in a good accountant (they will ensure you are making the most of the allowances on offer for holiday letting). 

For more information, read our Tax for Furnished Holiday Lets guide.

Let your property with Yorkshire Coastal Cottages 

At Yorkshire Coastal Cottages, we’re proud to deliver exceptional local service backed by strong booking performance and impressive income levels for our owners.  

Based in the heart of Whitby, our local team of holiday letting agents provide expert guidance at every stage of your journey, from initial planning and property development through to income forecasting and interior design advice, helping you turn your holiday let into a successful, long-term investment. 

 

As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes)). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.