Long-term renting vs short-term holiday lets in the South Hams: A 2025 snapshot for property owners

Mark Hoskin, manager of Stags South Hams lettings offices, comments:

“In 2025, landlords in the South Hams face a significant decision: whether to change tack to long-term renting or continue with short-term holiday lets. This choice, which may once have been more clear-cut, has become increasingly complex due to evolving regulations, shifting economic factors, changes in the tax regime and changing patterns in tourism. 

Traditionally, holiday lets have offered the appeal of high seasonal income, especially during peak summer months when tourism in the South Hams thrives. Many landlords have been drawn to the potential for higher returns in a short timeframe. However, this model is beginning to show signs of strain. With occupancy rates falling from post-Covid highs and recent changes to tax regulations- including tighter rules on what qualifies for certain tax reliefs and rising Council Tax premiums for second homes- historical financial advantage of holiday letting is narrowing. Additionally, the costs associated with running a short-term let, such as marketing, regular cleaning, linen services, management fees and utility provision, have all increased, particularly for landlords who rely on third-party services.

While the Renters’ Rights Bill will introduce changes to certain aspects of tenancy management in the future, long-term letting still offers several advantages. It typically provides a steady monthly income, involves less hands-on management, and usually results in lower maintenance costs due to fewer tenant changes compared to short-term holiday lets. In areas like the South Hams, where housing demand remains high, landlords also generally have little trouble finding reliable, high-quality tenants quickly.

As the South Hams’ leading Letting Agent and with over 150 years of experience in the wider South West property market, Stags is uniquely positioned to help landlords navigate the changing landscape and evolving opportunities.

Whether you are looking to make the switch from short to long-term letting, have a property you are considering letting, or simply want to understand how these changes might affect you, our expert team is on hand to guide you on [email protected] or 01803 866130.

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