Cashing in on the Staycation boom



Have you thought about either converting your rental property to a holiday let or start to let out part of your home to holidaymakers? Not only could you benefit from a greater level of rental income than a buy-to-let rent but also more preferential tax treatment.

What required to be classed as a Furnished holiday letting?

  • Available to let for at least 210 days a year
  • Actually let for at least 105 days a year
  • Not let for a period of 30 days or more on the same let at any time during the year

Mortgage interest relief

  • From April 2020 Buy to let investors will only receive a 20% tax credit on the mortgage interest
  • Furnished holiday lets can deduct the full value of mortgage interest against rental profits even beyond April 2020.

Capital gains tax

  • If you are considering letting your home in whole or in part for the first time you should consider the capital gains tax consequences
  • If the Furnished Holiday Let is treated as a business for tax purposes it can be eligible for a reduced capital gains tax rate of 10%

Rental yields

The National Average for furnish holiday let yields is 10% but the average is expected to increase to 14% by 2022. One of the important factors in determining rental rates are good online reviews. With few reviews in the first-year rents will have to be priced competitively, but landlords could see a 5-10% annual increase in rates as good reviews are received.


Agents to manage the lettings can charge up to 20% of the letting fee but can aid in getting the all-important holiday makers through your doors.

If you would like to know more about Furnished Holiday lettings please e-mail or call 01473659777 to arrange a meeting to discuss the financial implications.