The Government is considering taxing short-term holiday lets as second homes, meaning they could face council tax instead of business rates. The review follows concerns that some owners use small business relief primarily to reduce tax, while opponents warn the change could raise costs, reduce available accommodation and increase prices for holidaymakers.

In England, holiday lets can currently qualify for business rates if available for at least 140 days annually and actually let for 70 days. The Professional Association of Self-Caterers estimates the proposed change could add up to £3,000 a year for an average owner, while the Government says it is consulting stakeholders and has not announced a decision; the issue comes alongside plans allowing local mayors to introduce percentage charges on overnight stays.