As a property owner, you may be considering purchasing a holiday home as an investment, a second home for your own use or even a main residence. With the increasing demand for UK holiday accommodation, owning a furnished holiday let can provide substantial rental income and capital growth.
However, before making this investment, it’s crucial to understand whether holiday homes can be used as a main residence.
The Difference Between a Primary Residence and a Holiday Home
A primary residence is a property where you have full rights to live all year round and can register as your official dwelling. On the other hand, a holiday home cannot be your main residence. Holiday properties are typically located in popular tourist destinations and are intended for temporary stays and short-term letting. When purchasing a holiday home, it’s essential to pay close attention to any local council regulations and restrictions on the use of the property as a permanent residence.Council Tax and Business Rates for Holiday Homes
As a holiday homeowner, you are required to pay local authority rates similar to those for your main residence. However, if you let your holiday home to tourists or tenants, you may be eligible for a discount on the tax you pay.How to receive a tax reduction
To qualify as a furnished holiday let and receive a tax reduction, your property must:- Offer sufficient furniture for normal occupation
- Be let commercially
- Be available for at least 210 days a year (excluding any days you stay in the property yourself)
Restrictions on Living in a Holiday Home as a Main Residence
While some holiday homes may be available for use throughout the year, this doesn’t mean you can live there permanently. In fact, it’s often illegal to do so. The amount of time you can spend residing in a holiday home will vary depending on local rules and regulations, which should be clearly outlined in your purchase agreement or property documentation. It’s crucial to familiarise yourself with the specific restrictions on the use of your holiday home and to seek clarification from local authorities or legal professionals if needed.The Difference in Protection Between Primary Residences and Holiday Homes
Primary residences and holiday homes receive different levels of protection under the law. Legislation often grants primary residence homeowners specific rights when buying, selling, and residing in their properties. These rights may include fewer restrictions on what homeowners can do with their properties and limits on interference from external parties. Holiday homes, however, do not typically receive the same protections as primary residences. Living in a holiday home for extended periods may put you at risk of losing specific rights and warranties, and may be in breach of local regulations.Reasons to Buy a Holiday Home
If you’re looking for a long-term residence, purchasing a primary residence is a better option. However, if you plan to stay in the property for short periods or wish to let it out for profit, a holiday home can be an excellent investment. Buying a holiday home provides you with a fantastic opportunity to own a property in one of the UK’s best-loved destinations, whether you prefer coastal retreats or countryside getaways. Before signing a holiday home purchase agreement, it’s essential to carefully read through the terms and understand that you cannot reside in a holiday home permanently. Each property may have different rules and regulations, so if you’re unsure about what you’re signing, it’s advisable to seek help from a solicitor.53 Degrees: Your Trusted Partner in Airbnb Property Management
Owning a holiday home can be a rewarding investment, providing both personal enjoyment and financial benefits. However, it’s crucial to understand the legal and tax implications of using a holiday home as your main residence. While primary residences allow for permanent living, holiday homes are restricted to temporary stays and cannot be used as a primary dwelling. At 53 Degrees Property, we specialise in holiday let management. Our experienced team understands the intricacies of managing holiday lets and can help you navigate the legal and tax implications of holiday home ownership. We offer comprehensive services, including marketing your property, handling guest enquiries and reservations, cleaning, maintenance, and 24/7 guest support. By partnering with 53 Degrees, you can enjoy the benefits of owning a holiday home while we take care of the day-to-day operations, ensuring your property generates a steady income from happy guests year-round. Contact 53 Degrees today to discuss how we can help you maximise your investment and provide an exceptional experience for your guests.Get your FREE Holiday Let Valuation below!
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