Renters' Rights Bill: What Holiday Let Owners Need to Know

If you own a holiday let property, you may have been following coverage of the Renters' Rights Bill with some concern. There has been a lot of noise — some of it quite alarming — about what the legislation means for property owners. The reality for holiday let owners, however, is considerably more straightforward than the headlines might suggest. This article explains what the Bill covers, what it doesn't, and what — if anything — you should be doing differently as a result.

What Is the Renters' Rights Bill?

The Renters' Rights Bill is a piece of legislation introduced by the Labour government aimed at reforming the private rented sector in England. Its central provisions include the abolition of no-fault evictions (previously available under Section 21 of the Housing Act 1988), the introduction of rolling periodic tenancies to replace fixed-term assured shorthold tenancies, and the creation of a new Private Rented Sector Ombudsman and a landlord database.

The Bill represents the most significant change to the private rental sector in decades, and for long-term landlords with residential tenants, the implications are substantial. The removal of Section 21 means landlords will need to rely on specific grounds under Section 8 to regain possession — a materially different legal position.

Does the Renters' Rights Bill Apply to Holiday Lets?

The short answer is: no, not directly. The Renters' Rights Bill applies to assured and assured shorthold tenancies — the legal arrangement used for long-term residential lettings. Holiday lets operate on a fundamentally different legal basis.

A holiday let is a licence, not a tenancy. Guests pay for the right to occupy a property for a short, specified period as a holiday — typically up to 31 consecutive days. Because the occupier never acquires the rights of a tenant under the Housing Acts, the protections and restrictions that apply to assured tenancies do not apply. The Renters' Rights Bill does not change this.

This distinction is important. It means that the abolition of no-fault evictions, the mandatory periodic tenancy regime, and the landlord database requirements introduced by the Bill are not, in their current form, relevant to holiday let operators.

Holiday lets operate on a licence basis, not a tenancy — placing them outside the scope of the Renters' Rights Bill

The Important Caveat: How Your Property Is Actually Used

The distinction between a holiday let and a tenancy is not simply a matter of labelling. Courts and local authorities look at the substance of the arrangement, not just what the contract says. If a property is marketed as a holiday let but is in practice being used as someone's permanent home, the occupier may acquire tenancy rights regardless of what any agreement says.

There are a few circumstances where owners should take particular care. If you allow a guest or occupier to stay for an extended period — particularly more than 31 days continuously — the nature of the occupation may shift from holiday letting into something that falls under residential tenancy law. If someone is using your property as their main or only home, the same risk arises.

For standard holiday letting — guests booking for breaks of days or a few weeks — none of this is a concern. But if you are considering any arrangement that sits outside normal holiday letting patterns, it is worth taking legal advice before proceeding.

What About Short-Term Let Regulations More Broadly?

While the Renters' Rights Bill is not directly targeted at holiday lets, the broader regulatory environment for short-term rentals is changing. The government has introduced a short-term let registration scheme and has given local authorities greater powers to control the growth of holiday let properties in certain areas through planning permission requirements.

In some areas — particularly popular tourist destinations — local councils have the ability to designate areas where properties switching to short-term letting require planning consent. Dorset and the New Forest are among the areas that have seen discussion of these powers, though implementation varies significantly by council and specific location.

It is worth checking with your local planning authority if you are establishing a new holiday let operation, particularly if the property was previously a long-term rental or owner-occupied residence. The planning position can be complex, and getting it wrong can be costly.

What Should Holiday Let Owners Actually Do?

For most holiday let owners operating in a straightforward way — guests booking short breaks, professional management in place, property genuinely used for short-term holiday accommodation — there is no urgent action required in response to the Renters' Rights Bill itself.

What is worth doing is ensuring your operation is well-documented and clearly structured as a holiday let. That means:

This is simply good practice — and it is exactly what professional management provides. If you'd like to understand how we help owners stay compliant and well-organised, visit our holiday let management page.

Will the Regulatory Landscape Change Further?

It would be naive to suggest the regulatory environment for short-term lets will remain static. Across Europe, cities and national governments have taken increasingly interventionist approaches to short-term rental markets, driven by concerns about housing supply and affordability. The UK is not immune to these pressures.

The most likely developments in the coming years include expanding registration requirements, more active enforcement of planning rules around short-term lets in high-demand areas, and potentially new data-sharing obligations between platforms like Airbnb and local authorities.

None of this makes holiday letting unviable — far from it. But it does reinforce the value of operating through an experienced, professionally managed structure that stays current with regulatory requirements. Get in touch if you'd like to discuss how we keep our owners compliant and protected.