Holiday Let Registration Scheme - North Norfolk

Existing Holiday Lets

A Compulsory Registration Scheme For Holiday Lets is now to become law. Councils are awaiting timelines and guidelines from the government & holiday let registration schemes are likely to be reported in more detail in the summer 2024. It is expected that existing holiday lets will be automatically 'passported' into any registration scheme put forward by North Norfolk District Council, subject to holiday let owners being able to show that their properties comply with fire safety regulations, are properly insured and that their properties are registered for Business Rates.  Please do not hesitate to contact us to discuss any questions you may have  mark@norfolkstay.co.uk

Second Home Owners

A new Holiday Let Registration Scheme & New Planning Class for holiday lets are now officially on the statute books, this new legislation gives local councils the choice to how and when they implement these new restrictions. It is difficult therefore to fully anticipate how North Norfolk District Council will interpret their duty, balancing political pressure on local housing against the £2.8 billion the tourist trade contributes to the Norfolk economy.

However a wait and see stance by second home owners may well see them suddenly blocked out of the holiday let market, it could be a simple case of ‘ use it now or loose it '.

Option 1)

Some second home owners are making a dash to rent out their properties as holiday lets asap using the definitions set out by the Small Business Rate system as their goal, hoping this will automatically passport their property onto a new planning use as a holiday let, when NNDC bring this new planning requirement into force.

1. You cannot apply for Business Rates until your property has been actively marketed and available as a holiday let for 140 days.
2. You must achieve 70 nights of actual commercial bookings ( non being over 28 days in duration) before applying for Business Rates.

Option 2)

Some second home owners may decide to use their property as their sole and main residence. This for some would prove very inconvenient, but it could be an option in some circumstances, especially when working from home is an option.

1. May prevent double Council Tax increase in 2025 to be levied on North Norfolk second homes.
2. May allow you to let the property for 90 days commercially without registering as a holiday let.

Option 3)

Some second home owners may use their Norfolk property purely as a second home used by family and friends ( not commercially advertised as a holiday let ) 

1. This may be policed by the Online Travel Agent sites such as airbnb who may be required to only advertise registered holiday lets

HMRC Regulations For Short Term Let Platforms

HMRC have set out new regulations for UK 'intermediaries' such as self-catering agencies and online booking platforms including Airbnb. One requirement is that those advertising holiday lets will need to declare the Land Registry reference number for the holiday rental property which will show:

• Legal owner/s
• Whether main residence or not
• Lender details if applicable 

The changes came into effect on the 1st January 2024 and aim to improve tax compliance and transparency. 

Business Rates Rules 

Under the new rules in England, self-catering accommodation will be assessed for business rates rather than council tax only if the owner can provide evidence that:

1. it will be available for letting commercially*, as self-catering accommodation, for short periods totalling at least 140 days in the year after the day in question
2. during the previous year, it was available for letting commercially, as self-catering accommodation, for short periods totalling at least 140 days
3. during the previous year, it was actually let commercially, as self-catering accommodation, for short periods totalling at least 70 days

*“Commercially” is defined in the legislation as being “on a commercial basis, and with a view to the realisation of profits”. This will usually mean the property being let at market rates and actively advertised, for example through commercial marketing sites and publications. Lettings to friends or relatives at zero or nominal rents will not be covered.

These rules apply from 1 April 2022, but as they require retrospective evidence over the previous 12 months they do not come into effect until 1 April 2023.

Newly Available Holiday Lets

A property that becomes newly available as a holiday let (or that is purpose built as a holiday let) will be liable for council tax for each day until it has been available for 140 days and let out for 70 days in the previous 12 months. On the day that these two criteria are met, assuming the property will continue to be available for 140 days in the coming 12 months, it will qualify for a business rates assessment.

For example, a property that is first advertised as a holiday let would be liable for council tax for the next 140 days. If it was actually let out for 70 of these days, on day 141, it would qualify for a business rates assessment (provided the owner intended to advertise it for 140 days in the coming 12 months).

What You Need To Do

It would be prudent therefore for all holiday let owners to register their holiday homes for Business Rates before the new registration scheme starts to hit the media.  It is currently a requirement that holiday lets are registered for Business Rates opposed to Council Tax & it is highly likely therefore that a new Registration Scheme will only register holiday lets that are on the Business Rates register. I understand there is already a waiting list for new applications for Business Rates and I would suggest owners apply now before the real rush.

• Email  ndronline@voa.gov.uk   stating you have a commercial holiday let & wish to register the property for Business Rates  / show a link to the agent webpage for your property, or other proof that you are advertising a commercial holiday let.
• When registered then apply for small business rates relief https://www.north-norfolk.gov.uk/tasks/business-and-trade/business-rates/apply-for-small-business-rate-relief
• Organise private refuse collection  cleansing@north-norfolk.

Please do not hesitate to contact me to discuss any questions you may have  Mark  Tel; 07951 712 958

If you own a holiday let self-catering accommodation you should ensure you are now gathering the evidence required to meet the new rules.

The Valuation Office Agency is contacting customers from 24 October 2022 to let them know about the new eligibility rules and will be sending letters to owners of self-catering properties currently in the business rates list.

The Valuation Office Agency will be carrying out compliance checks to ensure properties meet the new requirements and moving properties back to the council tax list if they do not. If you feel your property will not meet the new requirements you should contact the Valuation Office Agency as soon as possible to avoid a large backdated council tax bill.

Safety Legislation

We are a fully registered agent with many years experience and we will make sure your cottage complies with all the Health and Safety checks and certificates required for your holiday let property. We also adhere to the standards set out by the Quality in Tourism organisation : Visit England (the official Tourist Board Accreditation). We keep proper records and organise the re-certification of gas appliances and boilers, smoke detectors, Carbon Monoxide detectors, chimney sweeping, etc.  

We automatically register your specific property with the Visit England Quality Assessed Scheme, 

Always Select A Registered ' Safe Agent'

All letting agents in England must now by law be registered with a Client Money Protection Scheme which gives certain protections to client monies held by a property agent, make sure your letting agent is registered with one of the following approved schemes;

• Client Money Protect
• Money Shield
• Propertymark
• RICS
• Safeagent 
• UKALA Client Money Protection

This also gives confidence to guests booking holiday cottages directly though an agent's website.