Holiday Let Management Bath — Income, Fees and What a Slower Month Looks Like

For a property to have been treated as a Furnished Holiday Let under the pre-2025 rules, it needed to be available for holiday letting for at least 210 days per year, actually let for at least 105 days, and each individual letting period was no longer than 31 consecutive days.

From April 2025, the FHL regime has been abolished and replaced with the standard UK property income framework.

The practical consequence is that Bath holiday let income is now treated identically to long-term rental income for tax purposes — the separate FHL category no longer exists.

The 140-day rule now applies specifically to the council tax versus business rates classification — a Bath short-let property that is genuinely available for at least 140 days per year and let for at least 70 days may qualify for business rates rather than council tax, potentially accessing Small Business Rate Relief if the rateable value is under £15,000.

Under the FHL regime, mortgage interest was deductible in full as a business expense against holiday let income.

From April 2025, mortgage interest relief is now capped at 20% as a tax credit — consistent with the treatment that has applied to long-term residential landlords since 2020.

For higher-rate taxpayers with mortgaged Bath properties, this increases the effective tax bill on the same gross income.

It also means the income advantage of short-term letting over long-term letting becomes more significant on an after-tax basis for some landlords — because the higher gross income can still produce a better net position even after the reduced relief.

Always confirm the specific impact on your tax position with a qualified accountant.

Capital allowances on furnishings and equipment are no longer available for new purchases from April 2025 — the accelerated FHL rate has been removed.

Capital Gains Tax on disposal is now 24% at the standard residential rate for higher-rate taxpayers, and Business Asset Disposal Relief at 10% is no longer available on former FHL properties.

For Bath landlords considering whether to sell or continue operating a holiday let, the CGT position on disposal is now aligned with standard residential property.

Tax treatment depends on individual circumstances — always confirm with a qualified accountant before making decisions based on this information.

For most Bath properties, yes — because the income differential between a Bath holiday let and a long-term tenancy is large enough to remain compelling even after the FHL tax advantages have been removed.

A three-bedroom in BA2 nets £42,684 per year through Stayful against a long-let total of £16,800 — a difference of £25,884.

The tax changes reduce some of the structural advantages that previously made FHL properties attractive as investment vehicles, but they do not materially affect the core income argument for Bath landlords who already own their property and are comparing STL against a long-term tenancy.

The income estimate gives you the net figure after the management fee — your accountant can then apply the relevant tax treatment to your specific position.

Bath receives approximately 4 million visitors per year.

UNESCO World Heritage status — covering the Roman Baths, Thermae Bath Spa and the Georgian city — generates international visitor demand that does not follow the domestic leisure seasonal pattern.

The Roman Baths and Thermae Bath Spa are open year-round and anchor a visitor base that keeps occupancy above the national STL average even through January and February.

Properties in BA1 and BA2 — within walking distance of the city's heritage attractions — consistently achieve the highest nightly rates and occupancy figures in the Bath market.

The Bristol–Bath economic corridor generates consistent midweek corporate short-stay demand throughout the year.

MOD placements at Corsham and Abbey Wood, along with Rotork and the growing Bath professional services sector, regularly require short-let accommodation for staff on project work — this demand continues through winter when leisure bookings are lower.

The University of Bath and Bath Spa University bring visiting academics, conference attendees and family visitors, particularly around graduation in June and July and open days in autumn.

Bath Christmas Market — running annually from mid-November through mid-December — is one of the UK's most visited Christmas events and drives nightly rates that rival peak summer.

Most UK holiday let markets experience a December trough; Bath has a December peak, which is structurally unusual and accounts for a significant share of the annual income advantage over comparable cities.

Other regular demand events include Bath Half Marathon in March, Bath Racecourse race days from May to October, Bath International Music Festival in May and June, and Bath Rugby home fixtures at the Recreation Ground from September through May.

A one-bedroom property in BA1 averages £2,880 net per month through Stayful — against a long-let equivalent of £1,000, an uplift of 188%.

A three-bedroom in BA2 averages £3,557 net per month — against a long-let equivalent of £1,400, an uplift of 154%.

Even in the quietest month of the year, comparable Bath holiday lets net between £2,400 and £2,964 depending on property size — both above the long-let equivalent in every month of the year.

All figures are net after Stayful's 15% + VAT management fee. The income estimate gives you the figure for your specific Bath postcode in under 2 minutes.

"Airbnb" refers to the platform — a website and app through which guests book short-stay accommodation.

"Holiday let" is the property use type — a furnished residential property let on a short-term basis to guests, typically for leisure purposes.

A holiday let managed by Stayful is listed on Airbnb as one of five platforms — Airbnb, Booking.com, VRBO, Google and Stayful's own direct booking channel.

The income advantage of Stayful's model over a purely Airbnb-listed property is that 40% of bookings come through direct channels where no Airbnb platform fee applies.

Yes — you block any dates you want to use the property in your owner calendar with no notice period and no approval process required.

Many Bath holiday let owners block a week or two in January — the quietest period — for personal use, which has no meaningful impact on the annual income picture.

Unlike a long-term tenancy, no guest has exclusive possession of your property. Every booking ends, and you retain full control of what happens next.

The figures on this page are conservative estimates based on Stayful's Bath area enquiry data — they are not best-case projections.

Below-market performance would require two things to fail simultaneously: Stayful's pricing and occupancy management, and the direct booking channel that currently accounts for 40% of bookings and reduces platform dependency.

Even if a month came in below the quiet month figure shown, Bath's structural demand profile — year-round tourism, corporate travel and the December Christmas Market premium — means any shortfall would be temporary rather than structural.

No STL provider can guarantee a minimum income figure — and we would be cautious of any company that does.

Stayful charges 15% + VAT of rental income — no setup fee, no photography surcharge, no fixed contract.

Cleaning is coordinated within the management fee but the cleaning charge is passed to guests at cost — it does not come out of your income.

The income estimate shows you the net figure after the management fee, so what the estimate shows is what lands in your account each month.

For most Bath properties, no planning permission is required to operate as a holiday let.

The main checks are: whether your property is leasehold and the lease restricts subletting; whether you have a residential mortgage and the lender requires consent to let; and whether Bath and North East Somerset Council has applied any specific conditions to your property.

Over 70% of Bath is within a designated conservation area, but conservation area status primarily governs physical changes to buildings — not occupancy use type — in most cases.

Always check your specific mortgage terms and lease before proceeding.