Ex-Council House - holiday let / long term let

larainotterton

Three years ago, we purchased an ex-local authority house from a private seller, i.e. it hasn't been a council house for over 30 years.  Do you think I will be able to rent it out, preferably as a holiday let, but failing that a long term at some point in the future?  Any advice appreciated, thanks!

Flugelhorn

it would depend if there were any covenants associated with it 

Section62

larainotterton said:

Three years ago, we purchased an ex-local authority house from a private seller, i.e. it hasn't been a council house for over 30 years.  Do you think I will be able to rent it out, preferably as a holiday let, but failing that a long term at some point in the future?  Any advice appreciated, thanks!

Councils in popular holiday areas are increasingly resisting use of homes for holiday lets (wanting to favour locals instead) so if there are covenants it may be that the council is more likely to enforce them.

You also need to check the situation with planning - some councils are putting restrictions on use of properties for holiday/short-term lets, and there are proposals to introduce a new use-class covering short term lets.  If this comes in then it may be necessary to apply for a change of use, and could be another tool councils use to restrict this activity in popular holiday areas.

https://www.gov.uk/government/consultations/introduction-of-a-use-class-for-short-term-lets-and-associated-permitted-development-rights/introduction-of-a-use-class-for-short-term-lets-and-associated-permitted-development-rights

Albermarle

Plus the tax regime for holiday lets is tightening, as announced in the 2024 budget.

2.7 Abolition of the Furnished Holiday Lettings (FHL) tax regime

As announced at Spring Budget 2024, the government will abolish the Furnished Holiday Lettings tax regime, eliminating the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants. This will take effect from April 2025.

Draft legislation will be published in due course and include an anti-forestalling rule. This will prevent the obtaining of a tax advantage through the use of unconditional contracts to obtain capital gains relief under the current FHL rules. This rule will apply from 6 March 2024.