Holiday lets contribute to the economy, create jobs, and support tourism.  Let me be clear that the Government backs small businesses, including responsible short-term holiday letting, which I recognise brings significant investment to local communities. At the same time, it is important to acknowledge the impact that large numbers of holiday lets concentrated in an area can have on local communities. 

At the Spring Budget, the Chancellor announced that the Government will abolish the furnished holiday lettings tax regime from 6 April 2025. Importantly, this will eliminate the tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants. This does not stop people conducting short-term lets, but rather ensures that the system is equal for those letting long term or short term. I understand your disappointment at this decision, however I believe it is an important step to level the playing field between short-term and long-term lets and support people to live in their local area. I am told that draft legislation will be published in due course.

While I hope this response has explained why I believe it is only right to remove the current incentive for landlords to offer short‑term holiday lets rather than longer-term homes, I will ensure my ministerial colleagues are aware of the strength of feeling on this matter.