Holiday let or tenancy? Clauses that show a stay is for a holiday
In England and Wales, a tenancy whose purpose is to let someone occupy a home for a holiday cannot be an assured tenancy, but the stay has to be genuinely for a holiday. VisitBritain says there is no limit on how long someone can stay under a licence to occupy, but the stay must actually be for a holiday. The label in your contract does not decide it.
What the law says about holiday lets
Schedule 1 to the Housing Act 1988 lists tenancies that cannot be assured tenancies. One of them is "a tenancy the purpose of which is to confer on the tenant the right to occupy the dwelling-house for a holiday". The schedule is marked as applying to England and Wales, so it does not settle the position in Scotland or Northern Ireland.
GOV.UK's page on tenancy types, which covers England, also lists "the property is a holiday let" among the cases where a tenancy is not an assured periodic tenancy. Both pages say the same thing in plain terms: the purpose of the stay matters.
A label is not enough
VisitBritain's holiday let guidance says that if you let a property for holiday purposes, "the law allows you to do this without the occupiers gaining any rights to remain in the property under what is termed a 'licence to occupy'". It adds: "There is no limit to the length of time that someone can stay in a property under a licence to occupy, but their stay must actually be for a holiday."
So calling a document a holiday let does not make it one. If a guest is in fact using your property as their home, a clause saying otherwise may not protect you. Whether a particular arrangement is a tenancy is a legal question, so take advice on any case that looks borderline.
Clauses that support a holiday purpose
VisitBritain recommends a basic agreement with the occupiers that includes a statement that you are letting the premises as a holiday let. Beyond that, these are general practice points for your booking terms.
- A purpose statement: the stay is for a holiday or short break, and the guest has another home to return to.
- Fixed arrival and departure dates, with no automatic renewal or rolling extension.
- A rule for extensions: any extra nights are a new booking, agreed in writing.
- A clear limit on who may stay and a bar on using the property as a postal address or main residence.
- Services and access: say what the stay includes, such as linen, cleaning and host access for changeovers, so it reads as accommodation for a stay.
- Payment by the night or stay, not a monthly rent, and no contract wording borrowed from residential tenancies.
Red flags to check before you accept the booking
Warning signs include a guest who says they are between homes, asks to register the address with banks or employers, wants to have post delivered, asks for a long fixed term, or keeps asking to extend. None of these proves a tenancy. They do mean you should ask questions, record the answers and think again about whether this is a holiday booking.
A short check sheet, completed for any longer or unusual booking, gives you a dated record of what the guest told you about the purpose of the stay.
Other nations and mixed use
Scotland has its own short-term let licensing scheme, and the Housing Act paragraph above is marked as applying to England and Wales only, so check the Scottish position separately. If you also let the same property long term, keep the holiday and residential paperwork completely separate and take advice before you switch a guest from one to the other.
What a short stay or tenancy check sheet should ask
A preview of our free Short Stay or Tenancy Booking Check Sheet. The complete, print-ready version is sent to you by email.
Booking details
- Property name or address
- Lead guest name
- + 5 more in the full form
Purpose of the stay
- Main reason for the stayHoliday or short break · Visiting family or friends · Business trip · Between homes · Other
- Does the guest have another permanent home to return to?Yes / NoIf yes, note the town or area only
- + 2 more in the full form
Terms and extensions
- Fixed departure date confirmed in the booking termsYes / No
- Has the guest asked to extend or stay on after the end date?Yes / NoIf yes, record the new dates and who agreed
- + 2 more in the full form
Decision
- OutcomeAccept as a holiday booking · Accept with conditions · Decline · Take advice first
- Reasons and any conditions setFree text
- + 2 more in the full form
The full form has 19 questions in 4 sections, a signed declaration and space for your business details. Get it free below.
Free template
Get the print-ready Short Stay or Tenancy Booking Check Sheet
A one-page sheet to complete for longer or unusual bookings: purpose of the stay, dates, red flags and how you decided to accept, with space for both signatures. Free, and yours to adapt.
Frequently asked questions
How long can a holiday let booking last?
VisitBritain says there is no limit to the length of time someone can stay under a licence to occupy, but the stay must actually be for a holiday. Length alone does not decide it, though a long stay is a reason to check the purpose and keep a record.
Does a holiday let need an assured shorthold tenancy agreement?
A tenancy whose purpose is a holiday cannot be an assured tenancy in England and Wales, so a genuine holiday let is arranged by a licence to occupy, not an AST. Use holiday let booking terms for holiday stays and take advice if the stay looks like a residence.
Can I use the same wording for a six month stay?
A six month stay is more likely to be someone's home than their holiday. Do not rely on holiday let terms for it. Take advice on the right arrangement and keep it separate from your holiday paperwork.
Does this apply in Scotland and Northern Ireland?
The Housing Act 1988 schedule we checked is marked as applying to England and Wales only. Scotland and Northern Ireland have their own housing law, so check the position for your property.
Sources
- Housing Act 1988, Schedule 1: Tenancies which cannot be assured tenancies, legislation.gov.uk
- Renting out your property: Tenancy types, GOV.UK
- Holiday Let Rules and Regulations in the UK, VisitBritain
The paperwork behind every booking
Holiday let agreement, cancellation and deposit policy, house rules, noise policy, GDPR notice and more as editable templates. One payment, no subscription.
See the packs, from £29 →These articles are general guidance for UK holiday let owners and hosts, not legal, tax or insurance advice. Holiday let rules differ between England, Scotland, Wales and Northern Ireland, so check the position for your property. Our documents are editable templates to adapt to your own lets.