Guide to selling a holiday let
Though the processes are largely the same with a few extra considerations thrown in, selling a holiday let can feel more complex than selling an ordinary residential property. In reality, however, selling this type of asset doesn’t need to be difficult or intimidating, and can instead provide one last bit of profit before moving onto your next investment opportunity.
So, whether you’re moving on from running a holiday letting business, cashing in on a long-term investment, or simply ready for a lifestyle change, there are a number of important factors to keep in mind if you want to sell smoothly. From Stamp Duty Land Tax (SDLT) calculations to knowing what time of year buyer interest will be at its highest, we’ll help you prepare your property (and business) for sale.
What is a holiday let?
A holiday let is a property that is rented out to guests on a short-term basis, usually for leisure or tourism purposes. Unlike a standard buy-to-let, where tenants typically sign long-term agreements, holiday lets are booked for days or weeks at a time, often through platforms such as Airbnb, Booking.com, or directly with the owner.
These properties can range from city apartments and seaside cottages to rural lodges and larger family homes. What defines them is their use: they are furnished, fully equipped for self-catering, and let to holidaymakers who want a temporary stay rather than a permanent home.
For many owners, a holiday let represents both an investment and a lifestyle choice. It can generate significant seasonal income while still allowing personal use outside peak periods. However, the dual nature of these properties also means they attract a diverse group of buyers – some motivated by profit, others by the appeal of owning a second home in a desirable location.
Because of these differences, selling a holiday let comes with unique considerations compared with selling a typical residential property. Buyers may not only want to know about the property itself, but also about its income potential, occupancy patterns, and reputation with past guests – all of which can play an important role in shaping its value.
Is it hard to sell a holiday property?
Selling a holiday let is not necessarily difficult, but it does come with a few unique considerations. Just as buy-to-let landlords need to manage tenancy agreements and the rights of tenants in situ when disposing of their property, holiday let owners must take into account issues relevant to their position, including:
- Attracting buyers. Not everyone will be in the market for buying a holiday let or second home. So, in order to maximise your appeal to your specific audience, you’ll first need to understand their key requirements and preferences.
- Securing a fast sale. Higher costs, from council tax to running costs, make achieving a quick sale the most efficient way of reducing expenses.
- Taking bookings. Continuing to accept bookings can offset costs and generate last-minute profits, but careful choices need to be made about how far into the future to do this.
- Finding peak selling season. In such a seasonal industry, timing is everything. Balancing last profits with buyer demand will determine how far before or after peak holiday booking times to sell.
- Planning for tax implications. With the Furnished Holiday Let (FHL) classification being abolished in April 2025, previous tax reliefs are no longer available, so this will need to be considered in your selling cost calculations.
Each of these factors can be difficult to get to grips with, with each presenting their own challenges and needing to be applied specifically to the circumstances of you, your sale and your property. To help start you off on the right foot, we’ve gone into detail on each element with advice on how to approach it as a seller.
Attracting buyers
When selling a holiday let, it helps to begin by considering who your most likely buyer will be. Unlike a standard residential property, a holiday let can attract a wide range of people, from experienced investors to lifestyle buyers. Understanding these motivations is key to marketing the property effectively and making the right decisions before listing it for sale.
For example, an income-focused buyer will often be most interested in purchasing an established holiday let that already has bookings in place, comes fully furnished, and has marketing materials they can take over straightaway. By contrast, a lifestyle buyer may be more interested in the property itself as a home, and could therefore prefer to purchase it without the commitment of existing bookings. Recognising these different motivations will help you shape the way you present the property and the supporting information you provide.
Securing a fast sale
A fast sale is something that many sellers look to achieve regardless of property type, but that’s especially true for holiday let sellers. This is because these lots often come with higher ongoing costs than residential or even traditional buy-to-let properties. From second home council tax premiums to increased maintenance costs, utility bills, and management fees, the higher expenses require high occupancy rates and strong margins to offset – something that is made more difficult when in the process of selling.
A fast sale not only reduces this financial strain but also allows you to move on confidently to your next investment or personal plans without being tied down by ongoing costs. While a fast sale isn’t something that can be guaranteed, however, it is more reliably achieved when selling by auction. With fixed timescales, legally binding contracts, and completion usually within 30 to 60 days (depending on your selling method), you have the added reassurance that the property will not sit on the market indefinitely or fall through at the last minute, as can often happen with traditional estate agent sales.
By choosing a sale method that prioritises speed and certainty, you can protect your bottom line and make the process far less stressful.
Taking bookings
With ongoing operation fees higher than your average properly, something many holiday let sellers will consider to keep costs down during the selling process is to continue taking bookings. Though there are clear financial benefits to this, doing this can influence the type of buyer you attract, the appeal of your property, and the smoothness of the handover.
There are three main approaches you can take regarding taking guest bookings while selling:
1. Continue to take bookings, with the buyer honouring them
This option is attractive to buyers who want to run the holiday let as a business from day one. By inheriting confirmed bookings (the money for which can be transferred from you to them upon sale completion), they benefit from immediate income and reassurance that the property is already popular with guests. It works particularly well if you are selling the property fully furnished and with established marketing materials, as the buyer can step straight into a ready-made business.
2. Continue to take bookings, without the buyer honouring them
In some cases, you may take bookings but allow the new owner to cancel them if they wish. Whether this is possible depends on the booking contracts in place, as some contracts will be voided once ownership has passed on, while others will require compensation to be paid to the booked guests if their visit is cancelled. If the agreements are direct between you and the guest, you can review the terms yourself; if the bookings were made through a third-party platform such as Airbnb or Booking.com, the process may be more complex.
Having the ability to cancel future bookings without running into legal or financial troubles will allow your property to maintain appeal to those not looking to rent it out immediately upon purchasing. Buyer types for this include those looking to renovate, redecorate and remarket before letting out, or those who want to use the property as a personal holiday home.
3. Don’t accept any bookings past the sale date
For many sellers, the safest and simplest route to appeal to all potential buyers without sacrificing income to do so is to wind the business down by refusing to take any bookings that extend past the sale date. By setting this clear cut-off date, you avoid complications if a buyer does not want to honour future reservations.
Of course, the route to selling can have unexpected twists and turns that can through the expected sale date off course. When this happens and the completion date is pushed further and further back, the missed opportunity for generating income can put strain on the sale. Fortunately, selling by auction can reduce the risk of this, with additional security and defined time frames giving you a reliable point to stop taking bookings while still maximising income in the lead-up to the sale.
Finding peak selling season
As we say in our When is the best time of year to sell a house? blog, the best time to sell varies greatly depending on the property, the target buyers, and your own personal needs as the seller. Just with any house, the timing of your sale can make a big difference to how smoothly the process runs and how attractive your holiday let is to buyers, so getting it right is as important as any other factor.
In a holiday let sale, this means paying attention to the following things:
- Viewings. Any savvy potential buyer will want to view the property themselves before making an offer or placing a bid. While this is usually easy enough for residential properties, and slightly more inconvenient for buy-to-let sellers with permanent tenants to work around, holiday lets cannot be shown while guests are staying. To avoid clashes, it’s worth keeping your booking calendar clear for dedicated viewing times, ideally outside of your peak season to reduce impact on income.
- Buyer interest. Whether the buyer is looking for an income generator, second home, or a mix of both, they’ll most likely be keen to complete before the busiest holiday periods, such as summer holidays, winter breaks, or local festivals and events. Owning the property ahead of these times allows them to carry out renovations, set up their business operations, or simply prepare the home for personal use. For this reason, autumn is often a practical time to sell, though the best timing ultimately depends on your location and personal circumstances.
Planning for tax implications
Before taking your property to market, you should also be aware of the tax implications when selling. From April 2025, the Furnished Holiday Let (FHL) tax regime has been abolished, which means these properties no longer benefit from reliefs such as Business Asset Disposal Relief or Business Asset Rollover Relief.
Instead, holiday let sales are now subject to the standard rules for second homes under Capital Gains Tax (CGT). The current rates are 18% for basic rate taxpayers and 24% for higher or additional rate taxpayers, which is payable only on the profits made (the difference between the price you paid, as well as any capital improvements, and the price you sell for).
So, how do I sell my holiday let?
To achieve the best outcome, a little preparation goes a long way. First, decide how you want to market the property: will you be presenting it as a business opportunity with financial records and a profitability pack, or simply as a residential property? Making this decision early allows you to tailor your approach to the right buyer group.
Getting the property itself ready is also important. While auction buyers in particular are often comfortable with properties that require some work, presenting your holiday let in good condition can increase its appeal to lifestyle buyers and investors looking for a quick turnaround. Nailing this and generating as much interest as possible is a great way to encourage competitive bidding.
For buyers looking to continue the property as a holiday let, preparing a business operations pack is also valuable. This should include information such as:
- Annual rental income and key seasonal peaks
- The proportion of repeat guests
- Typical guest types and booking sources
- Relationships with agents, cleaners, or service providers
- Management processes and booking software used
- Opportunities to grow income further.
This information provides buyers with reassurance and reduces uncertainty, making them more confident to bid.
Should I sell by auction or estate agent?
Finally, consider the best method of sale. While traditional estate agents may be suitable in some cases, selling by auction offers distinct advantages for holiday let owners. An auction offers certainty, with legally binding sales and fixed completion dates that make it easier to manage bookings and financial commitments. Sales are also much faster, usually completing within 30 to 60 days (depending on whether you opt to sell as conditional or unconditional).
The competitive nature of auctions can also work in your favour. With multiple buyers bidding against one another, the final selling price can be driven higher than expected. Importantly, once the hammer falls, the buyer is committed, giving you the peace of mind of a guaranteed sale.
Ready to sell your holiday let?
At SDL Property Auctions, we have extensive experience helping sellers achieve fast and successful results, including sales of holiday lets, investment properties, and residential homes. If you are considering selling your holiday let and want a process that is clear, reliable, and designed to get you the best outcome, get a free, no obligation valuation today.