Industry insights
Stay compliant, stay profitable: navigating new rules without sacrificing returns
21 Nov 2025
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By Amanda Sanders
As speculation grows around the 26th November Budget and its potential impact on second homes and holiday rentals, property owners face a dual challenge: staying compliant with changing regulations while maintaining strong profitability. At Travelnest, we believe compliance and profitability are not opposing goals. In fact, the most resilient and successful holiday-let businesses treat them as two sides of the same strategy.
The new reality: compliance is non-negotiable
Across the UK, the regulatory landscape for short-term lets has changed dramatically:
Scotland now requires all short-term lets to be licensed
Wales allows councils to charge up to 300% council tax on second homes
England is tightening planning rules and consultation on similar measures is underway
London continues to enforce its 90-day annual rental limit
Local authorities in tourist hotspots like Cornwall and the Lake District are introducing further restrictions
And with potential tax increases expected in the upcoming Budget, there has never been less room for error.
The cost of non-compliance versus the rewards of doing it right
What non-compliance could cost:
Fines of £1,000 to £20,000 per violation
Delisting from key platforms like Airbnb and Booking.com
Forced closure for unlicensed operations
Triggered tax investigations or audits
Damaged reputation and negative guest reviews
What full compliance can unlock:
10–15% higher nightly rates for licensed properties
Better placement in search results across major booking channels
Increased guest trust and higher conversion rates
Better tax outcomes with correct deduction strategies
Long-term protection as regulations evolve
The Travelnest compliance framework
Our end-to-end support helps you stay compliant and profitable, no matter where your property is located.
1. Licensing leadership
We’ve helped hundreds of hosts across the UK navigate licensing rules. Travelnest provides:
Application templates, checklists and guidance
Safety certification support through verified inspectors
Deadline tracking so nothing slips through the cracks
Renewal reminders to maintain year-round compliance
2. Smart tax positioning
With the Furnished Holiday Letting (FHL) scheme under review, understanding your tax position is critical. Travelnest supports:
Tracking qualifying nights and bookings
Identifying all legitimate, deductible expenses
Keeping digital records of every transaction
Advising on whether FHL status is still right for your setup
We don’t just support today’s rules, we help you prepare for future changes too.
3. Managing the 90-day rule in London
London’s short-let restrictions require careful planning. Travelnest helps you stay compliant by:
Automatically tracking 90-day usage across all channels
Optimising rates to maximise revenue within the limit
Advising on how to use remaining days for medium-term lets
Providing reporting that satisfies local authorities
4. Platform compliance mastery
Each booking platform has different requirements. We make sure your listing stays fully compliant with:
Verified documentation and up-to-date safety records
Maintaining strong response rates to avoid delisting
Meeting quality thresholds like Superhost or Premier Partner
Adapting instantly to new platform policy updates

Your compliance action plan
Immediate steps before Budget Day
Check your licensing status
Review whether you meet FHL conditions
Audit your documentation and expense records
Check your platform compliance performance
Post-budget response
Book a consultation with your Travelnest Property Expert
Model the impact of proposed changes on your property
Take advantage of any tax positioning updates
Adjust your pricing to protect net income
Long-term strategy
Bake compliance into daily operations
Maintain premium property and listing standards
Diversify revenue streams within the rules
Stay informed through Travelnest’s property updates and expert guidance
The professional advantage
In today’s landscape, amateur property management is risky. A professional approach ensures:
No missed compliance deadlines
Every legal deduction is captured
Your listing outperforms others in visibility and bookings
You’re protected from regulatory shocks
Travelnest gives you the tools and support to stay compliant, tax-efficient and highly profitable.
Compliance is an investment, not a cost
The smartest property owners treat compliance as an asset. With the right setup, every pound spent on licensing, safety and guidance can return many more in:
Higher occupancy and better guest reviews
Increased property value
Long-term business resilience
Ready for whatever comes next
The 26 November Budget may introduce new rules, but Travelnest hosts will be ready. With expert guidance and robust systems in place, you’ll be positioned to adapt quickly and stay ahead.
Don’t wait for regulatory changes to catch you off guard.
