Is short term letting still profitable in the UK?
August 13, 2025
Why landlords are switching from Airbnb to long term rentals
Is short term letting still profitable in the UK, or should landlords switch from Airbnb to long term rentals entirely? That question has been echoing across landlord forums for months, and 2025 looks set to give us the clearest answer yet. Ever-tighter local council short term let restrictions, heavier compliance burdens, and rising costs are forcing owners to weigh long term rental vs short term rental income UK and decide which model truly delivers the best rental strategy for landlords 2025 UK.
Over the last decade, hosts rode a wave of easy bookings and sky-high nightly rates. Yet the golden era is fading. From Edinburgh short term let licensing rules to a council crackdown on Airbnb 2025 proposals in London and Brighton, policymakers worldwide have begun reining in the once-laissez-faire holiday-let scene. At the same time, mortgage costs, energy bills and professional cleaning fees continue to bite.
Faced with these shifts, many investors are switching from Airbnb to traditional letting in search of income stability and fewer regulatory surprises. Below, we explore the major headwinds facing short-term rentals (STRs) and explain how a well-run private rented sector (PRS) tenancy can help landlords reduce risk as a UK landlord while still meeting their financial goals.
New short term rental rules UK 2025 - what landlords need to know
Local caps, licences & planning permission for short term lets
Remember when you could advertise a spare flat online within minutes? That era has ended. Cities large and small now impose night caps, compulsory registration, or full planning permission on holiday lets, including:
London limits entire-home STRs to 90 nights per calendar year without planning consent. Local enforcement teams are becoming more proactive, monitoring platforms and issuing fines. What are the legal rules for Airbnb in London? In many boroughs, hosts must prove they are the property’s main resident or secure a change-of-use permit.
Edinburgh adopted one of the strictest regimes. Hosts need both planning permission and a licence that covers fire-safety upgrades, insurance, and fit-out standards – a model other councils may emulate. These Edinburgh short term let licensing rules have already pushed hundreds of landlords to re-enter the PRS.
Coastal and heritage hotspots such as Brighton, Bath, York and St Ives all cite housing shortages as they request UK-wide powers for blanket STR caps. Expect more short term let planning permission UK debates in Parliament this year.
The direction of travel is clear, new short term rental rules UK 2025 will make life harder for casual hosts. With fines topping £30,000 for non-compliance, many landlords decide the risk is not worth the reward.
UK short term rental compliance checklist
Tick-box duties once limited to gas certificates and smoke alarms have ballooned. A modern holiday-let must often provide:
Commercial-grade fire doors and emergency lighting
Professional PAT testing for every electrical appliance
Public liability insurance
Evidence of planning consent or a licence number displayed in all marketing
Failure to satisfy even one item on this UK short term rental compliance checklist can invite enforcement action. Keeping pace with short term let licence requirements UK will feel like a part-time job for many owners.
Short term rental profit vs long term - earnings and costs
At first glance, a nightly rate of £180 can look tempting. But zoom out and consider the hidden costs.
Cost Category | STR Reality |
Mortgage | Often variable and recently 2-3× higher than five years ago |
Utilities | Hosts pay all bills which is painful during an energy spike |
Cleaning & Laundry | £70–£120 per turnover, sometimes twice a week |
Platform & Management Fees | 15–30% of gross income |
Furnishing & Repairs | Higher wear-and-tear, frequent replacements |
Add seasonality, cancellations and gaps between bookings, and many owners discover short term rental profit vs long term UK is not as one-sided as headline rates suggest. In fact, is long term letting more profitable than Airbnb is now one of the most-googled landlord questions.
Benefits of renting to long term tenants in the UK
Income stability long term vs short term lets
With the right tenant in place, you collect rent monthly, rarely chase arrears, and avoid deep-clean turnovers. When comparing income stability long term vs short term lets, steady beats spiky for many mortgage-backed investors.
How to simplify property management UK
Guest messaging, key-drop logistics, linen inventories. Short-term hosts sometimes feel like hotel managers. Long-term letting, by contrast, requires an onboarding and compliance rhythm, but far fewer daily tasks. If you value time, you might wonder when to stop doing Airbnb and go long term.
Digital platforms such as August offer tools to switch from short term to long term letting, handling compliance checklists, suggested reminders and document storage automatically. It is the simplest answer to how to simplify property management UK.
Short term rental mortgage and tax issues vs buy-to-let
Lenders prefer predictable rents and longer tenancy agreements. Meanwhile, the Treasury has proposed abolishing Furnished Holiday Let tax perks, meaning short term rental mortgage and tax issues could worsen. Some hosts will benefit from the relative transparency of the buy-to-let regime. Understanding landlord tax rules for Airbnb properties versus standard ASTs is vital, professional advice can prevent surprises.
Reduce risk as a UK landlord by choosing long term lets
Neighbours welcome quiet, stable residents more than a revolving cast of suitcase-rollers. By re-entering the PRS, owners can reduce nuisance complaints and maintain better community relations, particularly in flats and apartment blocks. These reasons landlords are leaving short term lets rarely make headlines, yet they matter in a licence-driven landscape.
When to stop doing Airbnb and go long term: four key questions
1. What’s better for landlords - long term or short term lets, given my location?
Run a side-by-side cash-flow model using realistic occupancy and cost figures. Online calculators comparing how much you can make from Airbnb vs letting can help.
2. Do I understand my landlord legal responsibilities for short term rentals?
If not, read up on how to stay compliant with short lets in the UK or speak to your local council housing officer.
3. Could I obtain planning consent if needed?
Some councils grant change-of-use approvals sparingly.
4. Am I prepared for further rule changes?
Policymakers continue to debate how to deal with short term rental regulation changes. Those conversations rarely end with lighter touch.
If the answers make you uneasy, you may be better off learning how to let a property long term legally in the UK and positioning your portfolio for predictable returns.
Switching from Airbnb to traditional letting
Carry out a cost/benefit review – gather real data on short term rental costs landlords forget, including linen replacement and extra insurance.
Serve notice on upcoming bookings – follow platform guidelines and protect your review score while exiting.
Refresh compliance – download our landlord checklist to understand the major steps you need to take. This is available in much more detail in the app.
Market smartly – today’s tenants care about EPC ratings, fast repairs and fair fees. Highlight the benefits of renting to long term tenants in the UK, such as security and community ties.
Automate management – adopt August for tenancy reminders, rent tracking and maintenance tracking. Our property dashboard allows you to quickly track your properties market value, tax bands and the status of your EPCs.
Short term rental vs long term UK final thoughts
Is short term letting still profitable in the UK? In limited pockets, yes. But the landscape grows tougher each quarter. For a growing number of landlords, consistent yields, clearer compliance and smaller time commitments matter more than chasing peak-season rates.
If you’re weighing short term rental income vs long term UK, why not explore how August simplifies switching from Airbnb to traditional letting? Our platform helps you to stay compliant, organised, and connected to tenants all under one roof. If you have tried other property management software and are now wanting all that in an app, then try August.
Ready to regain control? Join August with one month free and discover a calmer way to invest in 2025 and beyond.
