Government targets holiday let evictions with Renters’ Rights Act

The UK government has announced that new provisions within the Renters’ Rights Act will stop landlords from evicting tenants simply to convert their properties into short-term holiday lets. Baroness Taylor of Stevenage, Parliamentary Under-Secretary of State for Housing, confirmed this in response to a written parliamentary question, signalling a clear intent to protect tenants from displacement caused by the rising popularity of holiday rentals.

This development comes amid growing concerns that the expansion of short-term lets can reduce the availability and affordability of homes for long-term renters and buyers. The government’s approach includes both legislative changes and fiscal measures aimed at balancing the benefits of holiday lets with the needs of local housing markets.

Addressing the impact of short-term lets on housing affordability

In a written question dated 27 February 2026, Lord Truscott asked when legislation would be introduced to regulate short-term let properties. Baroness Taylor responded by acknowledging that while second homes and short-term lets can boost local economies, excessive concentrations in some areas can negatively affect housing availability and affordability.

To tackle this, the government has abolished the furnished holiday lets tax regime, removing tax incentives that encouraged landlords to prioritise short-term lets over longer-term tenancies. Additionally, Stamp Duty Land Tax rates on additional dwellings have been increased by five percentage points above standard rates, further discouraging the acquisition of properties solely for holiday letting purposes.

Baroness Taylor also highlighted that the Renters’ Rights Act contains a specific provision to prevent evictions aimed at converting properties into holiday lets. Furthermore, the Department for Culture, Media and Sport is advancing plans for a national registration scheme for short-term lets, which will enhance oversight and regulation of the sector.

Legal changes preventing eviction for holiday let conversions

The key legal change comes from Paragraph 8 of the Renters’ Rights Act, which removes Ground 3 from Schedule 2 of the Housing Act 1988. Previously, Ground 3 required courts to grant possession if the property had been used as a holiday let within the 12 months before the tenancy began. This allowed landlords to let properties seasonally as holiday lets and then to private tenants for the remainder of the year.

The explanatory notes to the Renters’ Rights Act clarify that removing Ground 3 means courts will no longer be obliged to award possession on the basis of prior holiday let use. This change effectively prevents landlords from evicting tenants solely to re-let properties as short-term holiday accommodation during periods of high tourist demand.

Additional measures and future powers

Beyond the Renters’ Rights Act, the government has announced a consultation on granting new powers to regional Mayors to impose an overnight levy on holiday lets. This could provide local authorities with further tools to manage the impact of short-term rentals on housing markets and community cohesion.

What this means for landlords and letting agents

For landlords and letting agents, these changes mean that evicting tenants to switch a property into a holiday let will no longer be a straightforward legal option. Those considering entering the short-term rental market should be aware of the new restrictions and the potential for increased regulation through registration schemes and local levies.

Landlords must ensure compliance with the updated legal framework to avoid unlawful eviction claims and consider the financial implications of the abolished tax reliefs and higher Stamp Duty rates on additional properties.

Suggested internal link anchors

• Renters’ Rights Act
• holiday let regulations
• short-term lets impact
• housing affordability
• Stamp Duty Land Tax changes
• tenant eviction rules
• national registration scheme
• regional Mayors’ powers
• overnight levy on holiday lets
• furnished holiday lets tax regime

TLA update

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