New Tax Rules Hit Holiday Let Owners Hard
New Tax Rules Hit Holiday Let Owners Hard: One Landlord Faces £20,000 Council Tax Bill
The UK government’s push to tackle the housing crisis in coastal and rural communities is having a serious knock-on effect on holiday let owners—and not in the way many expected. In a striking example, Blackpool-based holiday let owner Judith Robbins is now facing a hefty £20,000 council tax bill after six of her eight self-catering flats were reclassified as second homes under new 2023 legislation.
From Business Rates Relief to Council Tax Burden
Previously, Robbins benefitted from small business rates relief, paying about £3,500 per year to operate her holiday flats. However, with the new rules, these flats are no longer considered active holiday lets unless they meet strict occupancy thresholds. As a result, her properties have been reclassified as second homes, and she’s now liable for nearly triple the amount in council tax—roughly £9,000 per year.
“I don’t know how I’ll survive this,” Robbins said in an interview with the BBC, expressing fears of bankruptcy. The income generated by the flats no longer covers the increased financial burden. Her case isn’t unique, either.
The Bigger Picture: Cracking Down on Empty Homes
The policy change is part of a broader government initiative aimed at reducing the number of underused or vacant second homes, particularly in areas where locals are struggling to find affordable housing. But for many small business owners, the transition has been swift and financially damaging.
Local business forums in Blackpool report that several landlords are now considering selling their properties or shutting down entirely due to similar reclassifications. The hope of encouraging long-term rental conversions may inadvertently lead to fewer holiday accommodation options and hurt local tourism economies.
What’s Next?
Robbins is appealing the decision, but the process may take up to six months. In the meantime, she—like many others—is left in limbo, balancing overhead costs with declining profitability.
Final Thoughts
While the aim of the new tax rules may be well-intentioned, stories like Judith Robbins’ raise important questions: Are small holiday let businesses being unfairly penalised? Can a better balance be struck between housing reform and economic sustainability for tourism-reliant communities?
If you’re a property owner affected by these changes, now is the time to seek professional advice, reassess your occupancy strategies, and—if needed—lodge an appeal.
Have thoughts or similar experiences? Let us know in the comments below.
Looking for help managing your holiday let? Reach out—we’re here to support property owners navigating these changes.
