Converting Your Rental to Airbnb: What UK Landlords Need to Know in 2026

What's changed for long-term landlords in England

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025, and its main private-rented-sector tenancy reforms — including the abolition of Section 21 — came into force on 1 May 2026. These reforms apply to England. Housing is a devolved matter, and Scotland, Wales and Northern Ireland each have their own separate rented-sector law, so if you let property outside England, don't assume the same rules apply. If you're currently letting long-term in England, here's what's worth understanding even if you're only considering a switch:

• Section 21 “no-fault” evictions are gone. Existing assured shorthold tenancies convert to assured periodic tenancies with no fixed end date, and landlords now need a valid ground for possession to end a tenancy.

• Rent increases are limited to once a year, via a formal Section 13 notice (Form 4A) with at least two months' written notice — contractual rent-review clauses no longer apply.

• Rental bidding is banned. Properties must be advertised at one clear asking rent, and landlords/agents cannot accept or invite offers above it.

• New protections stop landlords refusing tenants solely because they have children or receive benefits.

None of this makes long-term letting unviable, but it does mean less flexibility and a longer commitment once you have a tenant in place — which is exactly the trade-off many landlords are now re-examining.

The short-let side of the equation

Short-let and serviced accommodation aren't exempt from regulation either, and it's worth knowing the boundaries before converting:

• If you're ending a long-term tenancy to convert the property, there are restrictions on how soon you can re-let it as a short-let afterwards — designed to stop eviction grounds being used as a backdoor route to short-let conversion.

• In Greater London specifically, letting an entire property short-term is capped at 90 nights per calendar year without planning permission — a rule that predates the Renters' Rights Act (it dates to the Deregulation Act 2015) but still catches people out.

• The Furnished Holiday Lettings tax regime was abolished with effect from 6 April 2025 for Income Tax and Capital Gains Tax, and 1 April 2025 for Corporation Tax. That means short-let landlords no longer get the capital allowances on furnishings, the more favourable capital gains treatment on sale, or the ability to count rental profits toward pension contributions that FHL status used to offer.

• The Private Rented Sector database is expected to begin rolling out regionally from late 2026, requiring landlords to register properties and compliance information — worth keeping an eye on regardless of which letting model you choose.

So which actually earns more?

This is genuinely property- and location-specific, which is why we're cautious about quoting generic percentage uplifts — a two-bed flat five minutes from a city centre and a rural cottage behave completely differently as short-lets.

Short-let income tends to be higher per night but less predictable month to month, and it comes with real running costs — cleaning between stays, guest communication, dynamic pricing, and maintenance turnaround — that a long-term let simply doesn't have. Long-term letting is lower-touch and more predictable, but under the new rules it's also a longer, less flexible commitment once someone's in.

The honest answer is: it depends on your specific property, and the only way to know for certain is to look at real comparable numbers for your address.

What a management company actually handles

If the short-let side appeals but the operational side doesn't, that's the gap a management company like Havanex exists to close. In practice that means listing setup and optimisation across major platforms, dynamic pricing, 24/7 guest communication, cleaning and maintenance coordination, and ongoing performance tracking — see our management services for the full list.