If you own rental property in the UK right now, you're navigating one of the most significant shifts the private rented sector has seen in decades. The Renters' Rights Act officially took effect in May 2026, abolishing Section 21 "no-fault" evictions and moving all tenancies to periodic rolling agreements. At the same time, a brand-new National Registration Scheme launched in April 2026, requiring every short-term let host to register with their local council.
The result? Many landlords are asking the same question: Is now the time to make the switch to short-term lettings?
The answer, for the right property in the right location, is increasingly yes — but only if you approach it strategically. This guide breaks down everything you need to know, including the opportunities, the pitfalls, and how platforms like Digzz are making it easier than ever to list, manage, and grow a short-term letting portfolio.
What the Renters' Rights Act Actually Means for You
The Renters' Rights Act has fundamentally altered the relationship between landlords and long-term tenants. Under the new rules:
- Section 21 is gone. You can no longer reclaim your property without proving a specific legal ground (e.g. persistent rent arrears, property needed for family use). The process is longer, more expensive, and less certain than it used to be.
- All tenancies are now periodic. Fixed-term contracts have been replaced by rolling month-to-month tenancies. A tenant can leave with two months' notice, but a landlord must prove a statutory ground and navigate the courts to remove a tenant they need to exit.
- Bidding wars are banned. Landlords and agents can no longer accept offers above the advertised asking rent, compressing yield growth in competitive markets.
For many landlords, this represents an unacceptable shift in risk. According to property industry analysts, 2026 is the year many landlords are finally reaching their threshold — and short-term lettings are an increasingly attractive alternative.
Why Short-Term Letting Has Never Been More Compelling
The timing is notable. AirDNA's 2026 Outlook Report declared this the best year to invest in short-term rentals since 2021, citing cooling supply growth, stronger average daily rates, and resilient travel demand. The STR Premium — a measure of how well short-term rental earnings stack up against investment costs — has climbed to its highest level since 2022.
Beyond the data, there are structural reasons why short-term letting makes sense right now:
Higher yield potential. A well-located property in urban areas, near transport hubs, or in tourist-friendly towns can significantly outperform a long-term tenancy on monthly income. You control your pricing dynamically, increasing rates during peak periods and events.
You keep control of your asset. With short-term lettings, you are never locked in. If your circumstances change, you can use the property, sell it, or repurpose it without waiting for a court order.
The mid-term rental sweet spot. One of the most significant trends in 2026 is the growth of mid-term stays — typically two weeks to six months. These attract corporate travellers, contractors, relocating professionals, and remote workers. They offer more stable income than constant weekend churn, with less tenant risk than long-term lets. Many landlords are finding this hybrid approach the most profitable model.
Understanding the New Rules: What You Must Know Before You List
Short-term letting is not a free-for-all. The regulatory environment has tightened considerably, and getting this wrong can cost you.
The National Registration Scheme (April 2026)
From April 2026, all hosts offering short-term accommodation in England must register with their local council. This is non-negotiable. The scheme is designed to improve safety standards and give local authorities better visibility of STR activity in their area. Failure to register can result in fines and enforcement action.
What you need to register:
- Property address and ownership details
- Confirmation of planning permission compliance
- Gas safety, electrical safety, and EPC certificates
- Public liability insurance
This is largely a one-time process, and platforms like Digzz can guide you through documentation requirements as part of your onboarding.
London's 90-Night Rule
If your property is in a London borough, you are subject to the 90-night cap. You can let your entire property on a short-term basis for a maximum of 90 nights per calendar year across all platforms combined without planning permission. This is a hard limit — and enforcement has strengthened.
Outside London, there is no national nights cap, but local planning authorities are increasingly active in monitoring STR activity, particularly in popular tourist and coastal areas.
The End of Furnished Holiday Lettings Tax Relief
As of April 2025, the Furnished Holiday Lettings (FHL) tax regime was abolished. This was a significant change that many short-term landlords are still adapting to. Practically, it means:
- You can no longer claim capital allowances on furnishings
- You lose the previously favourable capital gains treatment when selling
- Rental income no longer counts as "relevant earnings" for pension contributions
This doesn't make short-term letting unviable — far from it. But it does mean your tax planning needs to be sharper than it was before. We strongly recommend speaking with a property tax specialist before making the switch.
Where the Real Money Is — Direct Long-Term Bookings
Many landlords assume that to succeed in short-term lettings, you need to be across every major platform — Airbnb, Booking.com, Vrbo — juggling separate calendars, fielding messages from three inboxes, and watching 15–20% of your revenue disappear into OTA commissions on every booking. There's a place for multi-platform visibility, but it's not where the serious profits come from.
The real money is in direct long-term bookings — stays of 2 to 6 months booked without a platform middleman taking a cut. Your ability to secure even two or three extended stays per year can significantly increase your property's and your business's profitability. Here's why:
The maths are transformative. A property earning £150 per night with constant weekend turnover might look busy, but after platform commissions, cleaning costs for 100+ turnarounds, and the operational overhead of managing short stays, your net margin shrinks fast. Compare that to a three-month direct booking at a competitive monthly rate of £2,200: that's £6,600 with zero commission, one turnaround, minimal management — and the guest is a professional who treats the place like home, not a holiday let.
Every direct booking saves you 15–20% in commission. On a six-month stay worth £13,200, that's up to £2,640 straight back in your pocket rather than going to Airbnb or Booking.com. Over a year, across multiple bookings, the savings add up to thousands.
The demand is surging. Corporate relocations, NHS and contract workers on 13-week placements, remote professionals wanting a few months in a new city, insurance placements for families displaced by fire or flood — the pool of guests actively looking for 2–6 month furnished lets has never been deeper. These guests book early, pay reliably, and stay longer, giving you predictable income without the stress.
Repeat business becomes your growth engine. After a great three-month stay, that guest — or their employer — is highly likely to book again. A returning guest discount or a referral incentive turns one booking into a recurring annual income stream. You can't build that kind of loyalty through an OTA.
This is where Digzz fits in. Digzz is built for serious property owners and short-term managers who want these high-value, longer-term bookings without the compromises of the big platforms. It's a curated marketplace that connects vetted properties with corporate bookers, professionals on extended placements, and quality guests who book for months, not nights. You set your terms, you keep more of your revenue, and you build direct relationships that compound over time.
7 Practical Steps to Transition Your Property to Short-Term Lettings
Making the switch takes planning. Here's a proven framework:
1. Check your mortgage and insurance. Most residential buy-to-let mortgages do not permit short-term letting without specific consent. Contact your lender. You'll also need specialist short-term let insurance — standard landlord policies don't cover it.
2. Register with your local authority. Under the National Registration Scheme, this is now a legal requirement. Get your documentation in order early — gas safety certificate, EICR, EPC, and public liability insurance are the essentials.
3. Understand your planning position. Particularly if you're in London or a conservation area, check whether short-term letting triggers a change of use under planning law. Your local planning authority can advise.
4. Set up your property for guests. Short-term guests have different needs from long-term tenants. Think quality furnishings, reliable fast WiFi, a well-equipped kitchen, and clear arrival instructions. First impressions drive reviews, and reviews drive bookings.
5. Price strategically. Don't just set a flat rate and forget it. Use dynamic pricing principles — weekend uplift, event pricing, seasonal adjustment. For extended stays, offer competitive monthly rates that undercut serviced apartments while reflecting the value of a furnished, self-contained home.
6. List on Digzz. Getting your property in front of the right audience from day one is critical. Digzz's curated platform is designed to match high-quality properties with high-quality guests — which means better reviews, fewer issues, and stronger repeat bookings. [List your property on Digzz today →]
7. Review quarterly. The STR market moves fast. Keep an eye on occupancy trends, adjust your pricing, refresh your photography annually, and stay on top of regulatory updates in your area.
Is Short-Term Letting Right for Every Landlord?
In all honesty, no. Short-term letting demands active management or the cost of a professional manager. Properties in rural areas with poor transport links, or those that don't lend themselves to self-contained stays, may not yield the returns that justify the effort.
But for landlords in cities, commuter towns, tourist destinations, or areas with strong corporate demand, the numbers are compelling — and in 2026, with the long-term rental market reshaping itself through regulation, the case for exploring short-term lettings has never been stronger.
Start Your Short-Term Letting Journey with Digzz
Digzz was built for property owners who want to do short-term letting properly. Whether you're a single-property landlord exploring your options or a portfolio manager looking for a better-quality booking channel, we can help.
List your property on Digzz today and get access to a curated audience of guests, transparent pricing, and a team that understands the UK short-term rental landscape inside out.
👉 List your property on Digzz →
The information in this article is provided for general guidance only and does not constitute legal or tax advice. Always consult qualified professionals before making decisions about your property.
SEO Meta Description: The Renters' Rights Act 2026 has changed everything for UK landlords. Discover why smart property owners are switching to short-term lets — and how direct long-term bookings of 2–6 months can transform your profitability.
Tags: short term lets UK, Renters Rights Act 2026, landlord alternatives, short term rental regulations UK, National Registration Scheme 2026, mid-term rentals, direct booking profitability, long term bookings short term lets, Digzz, property management UK, FHL tax abolition, corporate accommodation UK