When it comes to letting your house as a holiday home, you may require planning permission, depending on several factors. The type of house, whether you require a conversion or need to apply for a change of use will determine whether you will need to apply for planning permission.
This blog will explore whether you will need planning permission, as well as the things you’d need to consider when thinking of letting your house for a holiday home.
What Is Your House Class?
The class of your house will determine whether you have to apply for a change. If you need to change classes, then this will require planning permission and an application for a change of use.
If your house is classed as C3, it means that it’s a ‘dwelling house’ which covers the following three:
- C3A: Covers use by a single person or family.
- C3B: Covers up to six people living together as a single household.
- C3C: Covers groups of up to six people living together as a single household.
If your house is a C4 class, it’s shared between three and six unrelated individuals. Subsequently, if your holiday let will house more than six people, then either a Class C1 or Sui Generis (in a class of its own) will need to be obtained. To apply for planning permission, contact your local authority.
Types of Holiday Let Conversions
There are many property types which can be converted to holiday lets; some are easier than others. Here are the most common conversions:
Residential Properties
If you’re converting a residential property, the alternations are likely to be made within the property and therefore, usually do not require planning permission. However, it is always best to check with your local council. A change of use will need to be applied for depending on the current class of the property.
Class Q
In 2014, the ‘Class Q Permitted Development’ regulation came into place which allows certain buildings to be converted from agricultural to residential without having to go through the full planning permission process. For further information about Class Q Permitted Development Rights, read our previous blog here.
Outbuildings
If you’d like to convert an outbuilding, such as a garage or annex, you will require planning permission for any modifications made. You will also need to apply for a change of use for the outbuilding.
Lodges & Log Cabins
Over the last few years, lodges and log cabins have become increasingly popular, if you’d like to convert a space into a permanent lodge or log cabin, then planning permission and a change of use will be required.
Things to Consider
When it comes to letting a property as a holiday home, there are a number of things to consider, such as:
Your Mortgage
The type of mortgage you require for a holiday let may differ from a standard mortgage. If you are yet to acquire the holiday let, it is best to research the mortgage options available for holiday homes.
If you already own the property and are looking to convert, you will need to check that your current mortgage provider allows you to do so, as many residential mortgages won’t allow you to let out the property.
Insurance Needed
Letting your house for a holiday let won’t be covered under domestic insurance. Therefore, you will need to acquire the correct insurance. As the property will likely be unoccupied for longer periods of time, the risk of theft increases. Holiday let insurance ensures that the owner, the property and the holidaymakers are all protected in case of any damage or accidents.
If your holiday let is mortgaged, then you will likely need buildings insurance to keep the mortgage company happy, as well as contents insurance to cover anything which could be damaged or stolen.
Council Tax
Owners of second homes or holiday lets were once given a reduction on council tax on the second property. However, this has now been changed, and the local authorities set council tax rates, so check with the council about their rates.
Inform HMRC
When planning to let out a holiday home, you’ll need to inform HMRC, as tax may be liable on the income which you make from the property.
Invest in the Features
A holiday home is an investment; to make the property more attractive and to add value to the property, it is vital to think about the features within the space. Will you add a hot tub? Will you allow pets? How will you furnish the space? The aesthetics in your property can add value to bookings.
Letting out a holiday home can have numerous benefits. If you’re looking to start a project of your own, Martin Perry Associates offer a range of property services. Whether you require a chartered surveyor or structural engineer in Cornwall, get in touch with us today.