Why Are Landlords Leaving the Holiday Let Market?
Landlords across South Devon are rethinking their holiday let strategies—and for good reason. With tax breaks scrapped and tighter regulations on the horizon, many are making the switch from short stays to long-term tenancies. If you’ve been feeling the pressure of managing a holiday let, you’re not alone. In this blog, we explore why so many landlords are stepping away from the holiday market—and how Bright Star Lettings can help make the transition smooth and profitable.
The Perfect Storm: Why the Exodus?
Tax Changes That Bite
One of the biggest reasons landlords are turning away from holiday lets is the recent abolition of the Furnished Holiday Lettings (FHL) tax regime. This change, which came into effect from April 2025, removes key financial benefits such as mortgage interest relief, capital allowances, and business rates exemptions. For many landlords, this means a significant drop in profit—especially for those with high running costs. The once-attractive tax treatment that helped justify the extra effort of managing a holiday-let is no longer on the table, leaving many reconsidering their position.
Heavier Regulation and Rising Costs
Holiday let owners are facing increasing levels of scrutiny and regulation. Local authorities are introducing tighter planning rules and licensing schemes, and there’s growing pressure to meet commercial fire safety standards. On top of that, landlords must keep up with rising utility bills, ongoing maintenance, and guest turnover costs like cleaning and laundry. It’s a full-time operation. For many, the regulatory and financial burden has tipped the balance, making long-term lettings a far more manageable and cost-effective option in today’s market.
Volatility and Vacancy Woes
The holiday let market has always been seasonal, but with more competition from platforms like Airbnb and fluctuating tourism demand, many landlords are now experiencing longer void periods and unreliable income. Cancellations, last-minute gaps in booking calendars, and increased guest expectations all contribute to a more stressful—and often less profitable—experience. When you compare that to the stability of a long-term tenancy, with consistent monthly income and fewer headaches, it’s no surprise that many are choosing to let for six months or more instead.
The Case for Long-Term Rentals
Steadier, Predictable Income
Unlike the peaks and troughs of holiday lets, long-term rentals provide a reliable income stream. Rent is paid monthly, often by standing order, and tenancy agreements provide landlords with legal clarity and protection. There are fewer surprises and significantly less time spent managing bookings or responding to last-minute guest queries. For landlords who rely on consistent returns or want a more passive income model, long-term letting offers the kind of financial stability that’s difficult to achieve in the short-let market.
Growing Demand in South Devon
The demand for quality long-term rental properties across Torbay, Teignbridge, and the South Hams has never been higher. With fewer available rentals on the market and rising house prices pushing homeownership out of reach for many, local families and working professionals are actively seeking well-maintained homes. This creates a great opportunity for landlords to attract reliable tenants at strong rental values. Moving from a holiday let to a long-term rental not only fills the voids—it meets a real and growing housing need in our local area.
Simpler Management (With Help!)
Managing a long-term rental is far less hands-on than running a holiday let. There’s no need to coordinate cleaners between bookings or worry about fluctuating guest reviews. Instead, landlords can benefit from stable tenancies, reduced maintenance, and far fewer administrative tasks. And if you’re not ready to go fully hands-off, services like Tenant Find Only mean you can get help where you need it—finding a great tenant—while keeping control of the day-to-day. It’s flexible without the full-time job of managing a holiday let.
Making the Switch: From Holiday Let to Long-Term Let
Property Prep Tips
Transitioning from holiday let to long-term rental starts with rethinking the space. Long-term tenants look for practical features: ample storage, comfortable living areas, and energy efficiency. You might need to declutter, remove surplus furnishings, or convert a room used for holiday extras into a more functional space. Don’t forget the legal essentials—an EPC rated E or above, a valid EICR, and a Gas Safety Certificate if applicable. Bright Star Lettings can walk you through exactly what’s needed to make your property compliant and ready for long-term marketing.
Pricing and Marketing
Holiday lets are often priced nightly, with cleaning fees and seasonal fluctuations. In contrast, long-term rentals need realistic, stable pricing that reflects local demand and tenant expectations. That’s where a free market appraisal from Bright Star Lettings comes in. We’ll help you determine a competitive monthly rent based on current market trends across Torbay, Teignbridge, and the South Hams. Marketing also shifts focus—from eye-catching holiday photos to showcasing liveability: natural light, layout, storage and broadband. With our support, your property can stand out to the right long-term tenants.
Timing the Change
Choosing the right time to switch is crucial. If your holiday let is seasonal, consider making the transition in quieter months—typically autumn or early spring—when bookings dip and tenant demand rises. This gives you breathing space to make any updates or repairs before viewings begin. Don’t worry if the timing feels tight—Bright Star Lettings can help coordinate viewings around existing bookings and ensure a smooth transition. The key is to avoid long void periods and get your property generating steady income as quickly as possible.
Long-Term Gains in Long-Term Lets
With tax perks vanishing and regulations mounting, it’s no wonder many landlords are moving away from holiday lets. Long-term rentals offer stability, less hassle, and growing demand—especially across Torbay, Teignbridge and the South Hams. But if you’re not quite ready to go fully hands-off, our Tenant Find Only service is the perfect in-between. We’ll handle everything from marketing to referencing, so you get a reliable tenant without the stress.
Whether you’re exploring your options or ready to make the switch, Bright Star Lettings is here to help. We know what tenants want—and how to position your property to attract them quickly and with confidence.
Thinking of switching from a holiday let to a long-term rental? Book your free market appraisal today and let us find the right tenant for you.