As we’ve spoken about recently, the government has changed the tax rules around holiday letting, the result being that holiday let owners can no longer offset their mortgage interest against their profits.
A recent article written by the journalist Leah Milner, posted by Mortgage Strategy on 7 May 2024, discusses this significant change. Here are some key excerpts from the article:
“If this is meant to boost first-time buyers in Devon and Cornwall, it is flawed”
Housing campaign group Generation Rent
“Affordable housing is needed in those coastal areas and other areas, but I don’t think freeing up former holiday lets is the answer”
Andrew Soye, Founder of HCM
“We have seen a real interest in switching from personal name to limited company models where you can circumvent the furnished holiday-let issue altogether”
Andrew Soye, Founder of HCM
“Squeezing the holiday-lets market does nothing to solve the ongoing question of where the UK’s homes of the future will come from”
Andrew Soye, Founder of HCM
You can read the full article here: https://www.mortgagestrategy.co.uk/cover-feature/cover-feature-holiday-lets-getting-the-balance-right/
The conversation around the government’s new regulations and any consequent shift in the holiday letting market will continue for the foreseeable future. If you have any questions about buying or operating a holiday let, please don’t hesitate to get in touch.
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FCA disclaimer
The information contained in this article is accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time and so please speak to one of our Consultants to confirm the most accurate up to date information. Nothing in this article constitutes financial advice. You understand that by clicking any external links on this page that you will be leaving the website of Holiday Cottage Mortgages and we cannot be held responsible for the content of this external website. Please always consult your accountant or solicitor for all financial, taxation or legal matters.