Key points
- Since April 2025 the two are taxed in much the same way: the furnished holiday lettings tax regime has gone.
- In England, section 21 ended on 1 May 2026. Tenancies are now periodic, and rent can rise only once a year.
- On a short let you pay the bills and council tax or business rates. On a long let the tenant usually does.
- A short let is priced night by night and you can use the home yourself. A long let gives one steady payment.
- England is bringing in a register for short lets, and in Wales every short let must be registered by 31 March 2027.
In this guide
The basic difference
A long let gives a tenant the right to make your home their home, for a monthly rent. A short let takes guests for a few nights or weeks at a time, priced night by night, through sites such as Airbnb and Booking.com or booked direct.
Which earns more depends on the home, the street and who books there. The fair comparison is what you keep from each once every cost is paid, which starts with who pays for what.
Who pays what
| Long let | Short let | |
|---|---|---|
| Council tax | The tenant, in most cases | You, or business rates if the home qualifies |
| Energy, water, broadband and TV licence | The tenant, in most cases | You |
| Furniture | Often unfurnished or part furnished | Fully furnished and equipped |
| Cleaning and linen | The tenant, during the tenancy | After every stay, usually paid for by the guest’s cleaning fee |
| Management | A letting agent’s fee, if you use one | A short-let manager’s fee, if you use one |
| Empty periods | Weeks between tenancies | Unbooked nights through the year |
| Using the home yourself | Not during a tenancy | Block out the dates you want |
Our council tax and business rates guide explains when a short let pays business rates instead of council tax.
Tax: much closer than it used to be
Until April 2025, short lets that met the furnished holiday lettings rules had tax advantages over long lets. That regime was abolished from 6 April 2025 for income tax and capital gains tax, and from 1 April 2025 for corporation tax. Now:
- Mortgage interest. For individual landlords, finance costs on both kinds of let get relief only as a basic-rate tax credit of 20%, not as a deduction.
- Selling. Holiday let reliefs such as Business Asset Disposal Relief and roll-over relief no longer apply, apart from limited transitional cases.
- Pensions. Holiday let profits no longer count as relevant earnings for pension contributions.
- Furniture. Replacements now come under replacement of domestic items relief, as for any furnished let. Existing capital allowance pools can carry on.
The government has also announced separate income tax rates for property income from 6 April 2027, of 22%, 42% and 47%, with finance cost relief given at 22%. Ask your accountant how the changes apply to you, particularly if you live in Wales.
Long lets: what the Renters’ Rights Act changed
The Renters’ Rights Act 2025 became law on 27 October 2025. Its first phase came into force in England on 1 May 2026:
- Section 21 “no-fault” evictions ended.
- Assured shorthold tenancies became assured periodic tenancies, with no fixed end date.
- Rent can rise only once a year, through the section 13 process with two months’ notice.
- Rent in advance is capped at one month, and rental bidding is banned.
- To sell or move back in, a landlord generally has to give four months’ notice, and cannot use these grounds in the first 12 months of a tenancy.
Next, registration on the new private rented sector database starts on 15 December 2026 in the West Midlands and reaches the rest of England over the following 12 months. Joining the new landlord ombudsman is expected to become compulsory in 2028. Tenancy deposits must still be protected in a government-approved scheme within 30 days.
In Wales
Since 1 December 2022, the Renting Homes (Wales) Act 2016 has replaced tenancies with occupation contracts. A no-fault notice must give at least six months and cannot be given in the first six months. Every landlord must register with Rent Smart Wales, and anyone who lets or manages the home must hold a licence.
Short lets: the rules that apply
- A let for a holiday is not an assured tenancy, so guests do not gain tenancy rights and the Renters’ Rights Act does not cover their stay. A damage deposit is a matter for your booking terms.
- England is bringing in a national register for short lets. The Culture Secretary told Parliament in September 2026 that it will be up and running in full by March 2027.
- In London, a whole home can be let for short stays for up to 90 nights a calendar year without planning permission.
- In Wales, everyone taking bookings of 31 nights or less must register with the Welsh Revenue Authority by 31 March 2027, and councils can choose to charge a visitor levy.
- Many mortgages and leases restrict short lets, and a standard home or landlord policy may not cover them. Check all three before you start.
Our short-let register guide covers the register, the London rule and the Welsh levy in detail.
Safety rules for each
| Long let in England | Short let | |
|---|---|---|
| Gas | A gas safety check every year by a Gas Safe engineer | Appliances checked every year by a Gas Safe engineer |
| Electrics | An inspection at least every five years, required by law | An inspection every five years is recommended in guidance |
| Fire | A smoke alarm on every storey, and a carbon monoxide alarm by any fixed combustion appliance | A written fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005, with alarms and precautions to match |
| Energy rating | An EPC of at least E now, rising to the equivalent of C by 1 October 2030 | An EPC may be needed. The 2030 minimum does not currently cover short lets |
Which suits your home?
A short let tends to suit a home that
- is near hospitals, big employers, universities, transport or places people visit, which bring guests all year
- is furnished to a good standard, or can be
- you would like to use yourself at times
- you want to keep flexible, for example to sell later without a tenant in place
A long let tends to suit a home when
- you want one predictable payment and as little involvement as possible
- there is little demand for short stays nearby
- your mortgage or lease does not allow short lets
- you would rather not pay the bills or furnish the home
The only reliable answer is a comparison for your own home. Your free earnings assessment shows what your home could earn as a short let, month by month, after every cost, including the bills. If your home would earn more as a long let, we will tell you.
Get my free assessmentQuestions owners ask
Is a short let more profitable than a long let?
It can be, but not everywhere. Compare what you keep after bills, fees and unbooked nights with the rent a long let would bring, for your own home and street.
Does the Renters’ Rights Act apply to holiday lets?
No. A let for a holiday is not an assured tenancy, so the Act’s tenancy rules do not cover guests on a short stay. It applies to tenancies where someone makes the home their home.
Is a short let still taxed differently from a long let?
Much less than before. The furnished holiday lettings regime ended in April 2025, so both are now taxed under broadly the same rules for residential property. Check your own position with your accountant.
Do I need permission to run a short let?
Check your mortgage, your lease if it is a flat, and your insurance. In London there is a 90-night limit without planning permission, and in Wales every short let must be registered by 31 March 2027.
Who pays the bills on a short let?
You do, as the owner: council tax or business rates, energy, water, broadband and a TV licence. On a long let the tenant usually pays them.
