Holiday Let Rules and Regulations: A Guide by The Upgrade Authority (TUA)
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At TUA, we understand that managing a holiday let property involves more than just maintaining its aesthetic appeal. To guarantee a smooth operation, owners must also comply with various rules and regulations, ensuring their property is safe and suitable for guests. Here’s our guide on the critical regulations you need to know as a holiday let owner.
Table of Contents
Insurance Coverage
Insurance is paramount when operating a holiday let. Ensure your policy covers the property and its occupants during both letting periods and all other times. The insurance should be specifically designed for holiday letting and not just regular home insurance.
It’s best to consider a holiday let insurance that includes buildings and contents coverage, with a critical component being Public Liability Insurance, which should ideally provide a minimum of £2m coverage per event or claim.
TUA can recommend reputable insurance providers experienced in holiday let coverage, should you need assistance.
Navigating Mortgages for Holiday Lets
Choosing the right type of mortgage is crucial when investing in a holiday let property. While a holiday let mortgage is specifically designed for short-term letting to tourists, certain Buy to Let mortgages may already permit holiday lets. So, it’s essential to understand your options.
Buy to Let Mortgage
Buy to Let properties are usually rented out long-term, but they could potentially serve as holiday lets. The advantage here is that it opens the door to a different set of tax benefits, such as the ability to deduct finance costs from income.
However, to qualify as a holiday let for tax purposes, your property must be available for letting for at least 210 days a year and let out for at least 105 days a year. There are also other tax considerations to remember, such as stamp duty for second homes and second home council tax (more about this later).
Holiday Let Mortgage
Holiday let mortgages differ from Buy to Let mortgages in terms of affordability calculations. Lenders consider an income projection figure based on the fluctuation in income throughout the year, rather than a simple annual rental figure. At TUA, we can provide you with accurate income projections to supplement your mortgage application. Get in touch with us to find out more.
To secure a holiday let mortgage, typically, you’d need a minimum deposit of 25% of the property’s value, a minimum income of £20,000 to £40,000 per year, in addition to your rental income, and a rental income that covers your mortgage payments plus a 25%-45% safety margin.
Remember, the choice of property can impact your mortgage options. If you’re unsure, consider consulting with a mortgage broker or an independent financial advisor.
Health & Safety
Holiday let owners should consider the following health and safety measures:
- Childproofing the property
- Identifying and eliminating trip or slip hazards
- Securing handrails on staircases
- Providing hazard warnings where relevant e.g., low ceilings
- Providing a list of emergency contacts
The Health and Safety Executive (HSE) provides resources to assist you in risk assessment and creating a safety action plan.
Fire Safety
For those providing holiday accommodation in England or Wales, it’s legally mandatory to perform a fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005. Additionally, any fire safety equipment provided should be checked regularly and come with clear usage instructions.
If your property includes upholstered furniture, you must comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988. A suitable automatic detection and fire warning system, dictated by the size of your property, is also essential.
Electric and Gas Safety
Ensure your property’s electrics are safe, performing regular visual checks and Portable Appliance Testing (PAT) at least every five years. Regarding gas safety, annual checks by a Gas Safe registered engineer are required, resulting in a Gas Safety certificate. It’s also good practice to install a carbon monoxide detector in rooms with gas, oil-burning appliances, wood burners, or open fires.
Risk Assessment: Swimming Pools, Hot Tubs, etc.
As part of your commitment to providing a safe environment for guests, a thorough risk assessment is crucial, particularly when your holiday let property features elements like swimming pools and hot tubs.
A risk assessment for your swimming pool is necessary to identify potential hazards and implement the necessary measures to prevent any incidents. This includes providing safety equipment, posting clear usage rules, and ensuring regular maintenance checks.
Similarly, if your property has a hot tub, a risk assessment is equally essential. Apart from regular maintenance, ensure you provide clear instructions to guests on how to safely use the hot tub. Consider factors such as temperature control, cleanliness, and potential hazards associated with its use.
This emphasis on risk assessment and safety not only ensures a pleasant stay for your guests but can also help in mitigating potential legal issues related to accidents and injuries.
TUA will be releasing a risk assessment template soon. Sign up to our mailing list to stay up to date on new features and services.
TV, DVD and Music Licences
When it comes to providing entertainment in your holiday let, there are several rules and regulations that need to be followed:
Television Licence:
Under UK law, if your property has a television and guests can watch or stream live TV on it, you must hold a TV licence. For holiday lets, a special type of licence is required – the Hotel and Mobile Units Television Licence (hotel licence). A single hotel licence, currently costing £157.50, covers up to 15 accommodation units within the same site. If you have holiday cottages in various locations, each location requires a separate licence. It’s important to note that these licences also cover devices that can record live TV, like PVRs and computers with TV tuners.
DVD Licence:
If you provide a DVD film library for your guests to enjoy, you will also require a licence. Supplying films to paying guests without a licence is considered an infringement of copyright law under the Copyright, Designs and Patents Act 1988. Licences for film exhibition can be obtained through organisations like Filmbankmedia, who manage public viewing rights for a wide variety of producers and distributors.
Music Licence:
Lastly, if you wish to play music in your holiday let, you may need a copyright licence, according to the Copyright, Designs and Patents Act 1988. Any use of copyrighted music in public settings, including holiday lets, generally requires the copyright holder’s permission. Licences can be obtained through organisations like the Performing Rights Society (PRS) and Phonographic Performance Limited (PPL), who manage copyright for music creators and performers.
However, it’s worth noting that if you operate a single self-catering unit with three guest bedrooms or fewer, you likely won’t require a music licence.
By adhering to these regulations, you ensure that your guests can legally enjoy a wide range of entertainment options during their stay, enhancing their overall holiday experience.
Accessibility
In compliance with the Equality Act 2010, your property should make reasonable adjustments to accommodate disabled guests.
Physical Access
Ensure there’s adequate access for guests who use wheelchairs or walking aids. Consider installing ramps for entrance ways with steps, and if possible, ensure there’s at least one bedroom on the ground floor. A clear, unobstructed pathway should lead from the car park to the entrance of the property.
Bathrooms
Adapted bathrooms can make a significant difference for guests with mobility issues. Installing grab bars near the toilet and in the shower can provide added support. Walk-in showers with seats are another valuable addition.
Visual and Hearing Impairments
For guests with visual or hearing impairments, consider installing features like tactile signs, visual alert systems for fire alarms, and induction loops.
Furniture and Interior Design
Thoughtful furniture placement can enhance mobility within your holiday let. Try to create wide, clear paths in all rooms. Similarly, adequate lighting, contrasting colours, and clear signage can aid visually impaired guests.
Information
Provide detailed information about your property’s accessibility features on your website or booking platform. Include photographs and measurements where possible. This can help guests with specific needs to determine if your property is suitable for them.
Training
Consider training for you and your staff about how to interact with and assist guests with various disabilities. This can range from learning about wheelchair maintenance to understanding how to guide someone with visual impairment.
While not all changes may be feasible, especially in older properties like the ones in Bristol which are Grade listed, it’s crucial to make as many reasonable adjustments as possible. Remember, improving your property’s accessibility can positively impact the guest experience and encourage repeat bookings.
Council Tax and Business Rates
For holiday lets available 140 days or more a year, business rates apply instead of council tax. Rules may differ for properties in Wales and Scotland, so checking with your local authority is advised.
Ensuring you follow all relevant rules and regulations can feel overwhelming, but it’s crucial for operating a safe, legal holiday let. At The Upgrade Authority, we’re here to help guide you through these processes, ensuring your guests have an enjoyable and safe stay.
Navigating the myriad rules and regulations for holiday lets can be a challenging endeavour. This is where TUA can assist. As experts in holiday let management, we have the knowledge and experience to ensure your property meets all legal requirements. We pride ourselves on offering comprehensive services tailored to your needs, enabling you to provide a safe, comfortable and fully compliant holiday let experience for your guests. Partner with us at TUA to elevate your holiday let to new heights of excellence and guest satisfaction. Let us handle the complexities, so you can focus on providing a memorable holiday experience. Get in touch with us today to learn more about how we can upgrade your holiday let management experience.
This blog post is intended to provide a general overview of some of the rules and regulations concerning holiday let properties in the UK as of the date of publishing. It should not be construed as legal, financial, or professional advice. While every effort has been made to ensure the accuracy of the information, The Upgrade Authority Ltd does not accept any responsibility or liability for any errors or omission, or for any actions taken based on the information provided in this post.
Laws, regulations, and industry standards can change over time and vary by location, and the specifics of your situation may involve factors not accounted for in this post. Therefore, it is essential that property owners and operators independently verify any information before applying it to their own situation.
We strongly advise you to consult with a qualified professional such as a solicitor, accountant, insurance agent, or local authority to get specific advice tailored to your circumstances. Always ensure that you are compliant with all relevant laws and regulations. Your use of any information or materials from this blog post is entirely at your own risk, for which TUA shall not be liable.
