What’s happening with holiday let regulations in Cornwall?
- alimabey
- Jul 2
- 3 min read
Updated: 6 days ago
Here’s what you need to know
There’s been a lot of conversation lately around the future of holiday lets in Cornwall, from tax changes to tighter regulations. If you own or manage a short-term rental, it’s essential to stay informed and prepare for what’s coming.
At Guested, we provide Airbnb property management in Falmouth and work closely with local property owners to help them adapt to changes in the market. Here's a clear, up-to-date overview of what’s happening, what it could mean for your property and how you can stay ahead.
Tax changes: major reforms coming for holiday let owners
One of the most significant updates is the government’s decision to scrap the Furnished Holiday Lettings (FHL) tax classification. Under the old system, holiday lets that met certain conditions were eligible for tax reliefs such as:
Deducting full mortgage interest
Claiming capital allowances
Qualifying for business rates instead of council tax
From April 2025, these benefits will no longer apply. Holiday lets will be taxed in the same way as regular residential rental properties, reducing the financial appeal for some owners.
Second homes to face higher council tax in Cornwall
Cornwall Council has also confirmed it will introduce a 100% council tax premium on second homes starting 1st April 2025. This means anyone with a second home used occasionally, but not permanently let or lived in, will effectively pay double council tax.
The aim is to free up housing for locals and reduce the number of properties sitting empty outside of the peak season.
Planning permission and holiday let regulation on the horizon
The government is also working on new planning rules for short-term lets. Under the proposed system, some areas may require hosts to apply for planning permission to use their property for holiday letting. These changes haven’t yet come into effect, but they’re expected to be introduced in phases.
This could result in a registration scheme or licensing system for holiday lets in Cornwall, giving councils more oversight — particularly in areas with a high volume of Airbnb and short-term rental activity.
What this means for the local market
Some owners are considering their options
With the financial and regulatory changes ahead, some property owners are rethinking whether short-term letting is still worth it. A number of holiday homes are being sold or converted into long-term rentals, especially in areas with rising costs and tighter restrictions.
But demand is still strong, especially in Falmouth
Despite the uncertainty, demand for holiday lets in Cornwall remains high, especially in sought-after coastal locations like Falmouth. We’re still seeing strong bookings for the summer and shoulder seasons, with families, remote workers and British holiday makers all seeking out well-managed, well-located properties.
The housing crisis and the push for balance
There’s no denying that the popularity of holiday lets has added pressure to Cornwall’s housing market. With limited housing stock, rising prices, and many properties set aside for tourists, it’s become harder for local residents to find affordable places to live. The challenge for councils and communities is to find a fair balance — supporting the tourism industry while protecting local housing needs.
What’s happening in Falmouth right now?
A few local headlines reflect how fast the landscape is shifting:
A former care home has been approved for demolition to make way for a car park
A new landlord has taken over a well-known Falmouth pub
The Falmouth Oyster Festival is returning, a sign that demand for visitor experiences remains strong
The National Trust is exploring long-term letting options for some of its holiday cottages
How Guested is supporting local owners
As regulations tighten, having expert support will be more important than ever. At Guested, we offer:
Full-service Airbnb property management in Falmouth
Professional compliance guidance and local market insight
Dynamic pricing to ensure your holiday let in Cornwall stays competitive
Local cleaning, linen, maintenance and guest support
A personal, trusted service that helps owners adapt with confidence
Need help navigating the changes?
If you own a holiday let and aren’t sure how these updates might affect you, we’re here to help. Whether you want to continue letting, switch strategies, or simply reduce your workload, Guested can support you every step of the way.
Get in touch with us to talk about your options and how to stay successful in a changing market.
