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Airbnb · Holiday lets · Serviced stays

Short let or long let?

Holiday lets lost their special tax treatment in April 2025, so both are now taxed the same way. Compare what each keeps you once fees, cleaning and bills come out.

Short let
Long let instead
Both
Short let, after tax, each year–
Short let: you keep–
Long let: you keep–after tax, 2027/28
Break-even–nights booked

Side by side, one year

Short letLong let

Furnishing is spread over five years. A short let also takes your time: messages, check-ins and reviews.

Rules for short lets in England

  1. London90 nights a yearLetting a whole home for longer needs planning permission. Count nights across every platform, not just Airbnb.
  2. TaxNo more holiday-let perksSince April 2025 mortgage interest only gets the basic-rate credit, and capital gains on sale are taxed like any rental.
  3. RatesThe 140 and 70 night testTo pay business rates instead of council tax, it must be available 140 nights and actually let 70.
  4. Second homesCouncil tax premiumCouncils can charge up to double council tax on second homes that don't qualify for business rates.
  5. SafetyFire risk assessmentHoliday lets need one, plus gas and electrical safety, alarms and fire doors where required.
  6. ComingNational registerA short-let registration scheme is being piloted. Each listing will need a registration number once it's mandatory.
  7. CheckMortgage, insurance and leaseMost buy-to-let mortgages and many leases ban short lets. Get consent and a holiday-let insurance policy.

Taxed at the 2027/28 property rates, with mortgage interest relieved at 22%. Platform fees vary by listing setup; check yours in your host account. An estimate, not tax advice.

Why the sums changed in 2025

Until April 2025, furnished holiday lets had their own tax rules. Owners could deduct all their mortgage interest, claim capital allowances on furniture and pay less capital gains tax on a sale. Those rules have gone. A short let is now taxed like any other rental, so the comparison comes down to what's left after the extra running costs.

What eats into short-let income

Platform fees typically take around 15% if you pay the host-only fee. Each changeover needs a clean and fresh laundry, so shorter stays cost more per night. You also pay the bills, broadband, council tax or business rates, and replace worn furnishings. A long-let tenant normally covers bills and council tax themselves.

Worked example

A flat outside London that would long-let for £1,850 a month, short-let at £165 a night and booked 70% of the year, keeps its owner about £2,200 a year more as a short let after tax. That's before counting the time spent on messages, check-ins and reviews. Tick the London box and the 90-night limit puts the short let far behind.

Questions landlords ask

Is Airbnb income taxed differently from normal rent?

Not since April 2025. Short-let profit is taxed as property income, mortgage interest gets only the basic-rate credit, and capital gains on a sale are taxed like any other rental.

What is London's 90-night rule?

Letting a whole home in London for more than 90 nights a year needs planning permission. The limit counts nights across all platforms and direct bookings.

Will I pay council tax or business rates?

To pay business rates, the property must be available for at least 140 nights a year and actually let for at least 70. Otherwise it pays council tax, and councils can charge up to double on second homes.

Do I need my lender's permission?

Usually. Most buy-to-let mortgages and many leases don't allow short lets. You may need a holiday-let mortgage, your freeholder's consent and specialist insurance.

Sources

Last updated 1 October 2026.

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