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Furnished Holiday Letting Consultation

Monday 01 November 2010, 11:41 AM

The Tourism Alliance agrees with the Government's position that the FHL Rules should only be available to legitimate self-catering businesses that are intended to be operated for profit and provide economic benefits to local communities.

As such, the Alliance accepts the Government?s aim of increasing the thresholds in order to reduce potential abuse of the rules by the owners of second homes - although it should be noted that there is no evidence of widespread abuse at the current threshold levels.
A survey of 30,000 self-catering operators undertaken by the Tourism Alliance indicates that raising the threshold for which a property is available for letting from 140 to 210 days and the minimum period for which a property must be let from 70 to 105 days per year will adversely affect around 20% of self-catering operators.
While the actual level of impact will be lower as operators currently operating at between 10-14 weeks occupancy will be incentivised to operate for longer periods, it should be noted that the level of impact will not be evenly distributed across the UK. Operators in more remote locations (eg., Cornwall and West Wales) and/or with shorter summer seasons (eg., Scottish Highlands) will be disproportionately affected and it is these communities that are more dependent upon tourism than areas closer to urban centres...
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