Holiday Let Management in London
Last updated: May 2026
This page is for London property owners — not for guests looking to book. If you own a London property and want it managed as a holiday let, this covers what the service involves, what the income looks like against a long-term tenancy, and what the abolition of the Furnished Holiday Let regime in April 2025 means for London landlords specifically.
Holiday let management in London operates under the same hybrid model as all London short-let management — 90 peak short-let nights within the annual planning cap, combined with mid-term bookings for the balance of the year.
Stayful manages London holiday lets at 15% + VAT, with no setup fee, no minimum contract, and verified income data from Central London managed properties.
A two-bedroom Central London property (EC4M) managed by Stayful as a holiday let nets £3,218 per month on average against a long-let of £2,040 — a 58% uplift. Even in the quietest month the managed figure exceeds the long-let by 31%. The FHL tax regime was abolished in April 2025 — London holiday let income is now taxed as standard UK property income. The London 90-day rule still applies. Management fee: 15% + VAT, no setup fee, rolling monthly contract.
2-bed Central London
2-bed Central London
City to North London
Based on verified enquiry data from a managed property in EC4M (City of London, 58% uplift) and NW3 (North London, 117% uplift). The range reflects genuine variation — City postcodes with high LTR rates show more modest uplifts; outer Central and inner North London postcodes show stronger gains. Conservative estimate.
What a Central London holiday let earns — and what a quieter month produces
The figures below are from a two-bedroom property in EC4M (City of London, Central London), managed by Stayful.
All figures are net after Stayful's 15% + VAT management fee.
No seasonal variation
Worst month: £2,040
Peak month: £3,933
Quietest month: £2,682
Key figureEven in the quietest month (£2,682 net), this Central London property earned 31% more than the long-let equivalent of £2,040 — in a postcode where long-let rates are already high relative to the rest of England.
North London comparisonA two-bedroom property in NW3 (Hampstead area) shows a wider margin: £3,388 average net against a long-let of £1,560 — 117% uplift, with a worst month of £2,823 that still beats the long-let by 81%.
Annual pictureThe EC4M property netted £38,616 across the full year against a long-let equivalent of £24,480 — an annual net advantage of £14,136 on a two-bedroom Central London property.
What the 2025 abolition of the Furnished Holiday Let regime means for London landlords
The Furnished Holiday Let (FHL) classification was abolished on 6 April 2025.
For London property owners, this changes the tax position for existing and new holiday lets in four specific ways — all of which apply on top of the continuing 90-day planning restriction.
The FHL regime had offered capital allowances, mortgage interest relief without the 20% cap, BADR-rate CGT, and pension contribution treatment. All four have changed. London landlords with significant capital appreciation or mortgage debt are most directly affected.
Now capped at a 20% tax credit — the same as standard buy-to-let. For higher-rate taxpayers with London mortgages, this reduces net return materially. Model with a qualified accountant before proceeding.
No longer available on new holiday let purchases from April 2025. Existing qualifying expenditure may retain its allowance position — confirm with your accountant.
Business Asset Disposal Relief (BADR) at 10% no longer applies. Standard 24% residential CGT rate applies. Given London property values, this is the highest-impact change for London holiday let owners with significant appreciation.
Holiday let income now reported as standard UK property income under Self Assessment — no longer under the separate FHL supplementary pages. Stayful provides monthly income statements to simplify your return preparation.
Tax treatment depends on individual circumstances — always confirm with a qualified accountant.
The abolition of FHL status reduces the tax efficiency of London holiday lets compared to the pre-2025 position — but the income advantage over a long-term tenancy (58–117% depending on postcode) remains unchanged. Whether the net position is favourable after the new tax treatment depends on your specific mortgage, property value, and marginal rate. The income estimate shows the gross advantage; your accountant confirms the net-of-tax position for your circumstances.
Everything Stayful handles for your London holiday let — one fee, no hidden extras
The 15% + VAT management fee covers the full end-to-end service for both the short-let and mid-term components.
- Guest communication — 24/7 response across all London holiday let bookings
- Dynamic pricing — daily adjustments against London event calendar, seasonal patterns, and postcode-level demand data
- 90-day calendar management — peak holiday let nights allocated to highest-demand periods; mid-term lets fill the balance compliantly
- Mid-term bookings channel — professional and corporate stays targeted to fill non-peak calendar at premium rates
- Cleaning management — coordinated between every stay; cleaning cost passed to guests at cost price
- Key management — guest access handled for every booking
- Maintenance coordination — issues resolved promptly; your approval above agreed threshold
- Property inspections — quarterly checks with photographic reporting
- Guest screening — ID verification on all bookings
- Multi-platform advertising — Airbnb, Booking.com, VRBO, Google, Stayful direct
- Direct booking channel — 40% of Stayful bookings direct at 0% platform fee
- Monthly income statements — suitable for Self Assessment preparation
- Owner calendar — block any dates for personal use; no notice required
- £100,000 host damage protection and £200 security deposit on all bookings
How the 90-day rule applies to London holiday lets — and why it doesn't eliminate the income case
Under the Deregulation Act 2015, entire-home short-lets in Greater London are capped at 90 nights per calendar year without planning permission — this applies to all London holiday lets regardless of how they are marketed or managed.
Airbnb enforces this cap automatically. Other platforms and direct booking channels do not enforce it automatically — the legal responsibility to track total nights across all channels rests with the property owner.
The 90-night cap does not mean the property can only earn income for 90 nights. Mid-term stays of 28+ nights are not short-lets for planning purposes and can fill the rest of the calendar compliantly.
Stayful manages the 90-night allocation annually — peak holiday let nights are deployed in the periods that generate the highest nightly rates (summer, Christmas/New Year, major events), and the remaining calendar is managed as mid-term professional accommodation.
For the complete rule breakdown: London Airbnb 90-day rule — complete guide.
The income case — the gross revenue advantage of short-let over long-let — is unchanged by FHL abolition. London holiday let properties continue to generate 58–117% more monthly income than comparable long-let properties in the same postcode.
What FHL abolition changes is the tax efficiency of that income. The mortgage interest cap, loss of capital allowances, and higher CGT rate all reduce the post-tax advantage compared to the pre-2025 position.
For London landlords without a mortgage on the let property, the impact is largely limited to the CGT change on eventual disposal — the income tax position is broadly similar to the long-let alternative.
For London landlords with a significant mortgage relative to rental income, the 20% tax credit cap is the most material change and should be modelled with a qualified accountant before deciding whether to switch from long-let to holiday let.
The honest position: FHL abolition makes London holiday lets less tax-advantaged than they were before April 2025 — but the gross income advantage over long-let remains substantial, and for most London landlords the net post-tax position is still meaningfully better than the long-let alternative.
A London holiday let property that is available to let commercially for at least 140 nights per year and is actually let for at least 70 nights qualifies for business rates rather than council tax.
The interaction with the 90-day rule: short-let bookings of 1–89 nights and mid-term lets of 28+ nights both count toward the 70-night minimum letting threshold, but only the short-let bookings count toward the 90-night planning cap.
Properties with a rateable value under £15,000 may qualify for Small Business Rate Relief, which can reduce or eliminate the business rates liability entirely.
Always confirm the applicable rating with your London borough council and Valuation Office Agency — the position varies by property and borough.
Stayful London holiday let management — what's included vs the alternatives
| Feature | Stayful | Typical London HL agent |
|---|---|---|
| Management fee | 15% + VAT | 15–20% + VAT typically |
| Setup / onboarding fee | £0 — none ever | Often £200–£500 |
| Minimum contract | Rolling monthly | Often 6–12 months |
| Platforms | Airbnb, Booking.com, VRBO, Google, Stayful direct | Airbnb + Booking.com typically |
| 90-day planning compliance | ✓ Tracked and managed across all channels | Airbnb auto-block only |
| Mid-term professional lets | ✓ Fills non-STR calendar | Varies |
| Direct bookings | ✓ 40% of all bookings — 0% fee | Not available |
| Monthly income statements | ✓ Suitable for Self Assessment | Varies |
Questions London holiday let owners ask before running the numbers
Holiday let management in London is a full-service arrangement where a management company takes operational control of your property and manages it as a furnished short-let — handling all guest communication, pricing, cleaning, maintenance, compliance, and income reporting.
In London specifically, the 90-day rule means holiday let management typically combines peak short-let nights within the annual cap with mid-term professional lets for the balance of the year — both managed under the same arrangement.
Stayful manages London holiday lets at 15% + VAT with no setup fee and no minimum contract.
A two-bedroom Central London property (EC4M) managed by Stayful nets £3,218 per month on average — against a long-let of £2,040, a 58% uplift. The quietest month produces £2,682 net, still 31% above the long-let equivalent.
North and West London properties with lower long-let rates relative to STR demand show larger percentage uplifts — a two-bedroom in NW3 (Hampstead area) nets £3,388 average against a long-let of £1,560 (117% uplift).
The income estimate gives a figure specific to your London postcode and bedroom count — including the hybrid model projection for the full year.
The Furnished Holiday Let (FHL) tax classification was abolished on 6 April 2025. From that date, holiday let income is treated as standard UK property income under Self Assessment — not as FHL income with its separate and more favourable tax rules.
The four key changes: mortgage interest is now subject to the 20% tax credit cap (same as buy-to-let); capital allowances are no longer available on new purchases; CGT on disposal is now 24% rather than the 10% BADR rate; and the pension contribution treatment for FHL profits no longer applies.
The income advantage of holiday letting over long-term letting is unchanged by these tax changes — the gross revenue uplift remains 58–117% for London properties depending on postcode. What has changed is how that income is taxed. Confirm your post-tax position with a qualified accountant before making decisions based on the pre-2025 FHL tax position.
Yes — the 90-night entire-home short-let cap applies to all London holiday lets across all 32 boroughs plus the City of London. The cap predates the FHL regime and is entirely separate from it — FHL abolition did not change the 90-day planning rule.
The cap does not prevent you from earning income for more than 90 nights — mid-term stays of 28+ nights are not short-lets for planning purposes and can fill the remaining calendar compliantly.
Stayful manages the 90-night allocation annually. See the full rule: London Airbnb 90-day rule guide.
Stayful charges 15% + VAT of the net booking value — calculated after the platform booking fee has been deducted, not on the gross guest payment. No setup fee, no exit fee, no minimum contract period.
Most London holiday let management companies charge 15–20% + VAT with additional setup fees for photography and onboarding. Stayful's 15% + VAT is the all-in rate.
Yes — you block any dates you want to use the property in your owner calendar. No notice period, no approval process.
For the 140-night availability threshold for business rates eligibility, note that owner-blocked dates count toward the 140-night availability requirement (the property is "available to let" when not blocked for personal use) — only guest-let nights count toward the 70-night minimum let requirement.
What a comparable Central London holiday let earned — strong month and quiet month
This two-bedroom property in EC4M (City of London) moved from a long-term tenancy at £2,040 per month to Stayful holiday let management under the hybrid short-let and mid-term model. Monthly average since onboarding: £3,218. January — the quietest month — produced £2,682 net, driven primarily by corporate mid-term stays from nearby financial services professionals. The long-let paid £2,040 every single month regardless of season. Every month, including the worst, the holiday let came in above the long-let.
Two-bedroom holiday let, City of London (EC4M) — figures net of Stayful 15% + VAT management feeSpeak to the Stayful team about your London holiday let — or run the income estimate for figures specific to your postcode.
Ready to see what your London holiday let could earn after the FHL changes?
Net annual figures for the hybrid model — short-let peak nights plus mid-term balance — after all fees. Specific to your London postcode. Takes 2 minutes.