Buy to Let Holiday Lodges: All You Need to Know

Holiday home letting can be a fantastic way to offset costs and share your lovely lodge with other holidaymakers. But is it as simple as handing over the keys? 

Park rules, planning permissions, tax criteria and specialist insurance all play a part in determining if your lodge can be let out – and how much you can earn from doing so. This expert guide walks you through everything you need to know.

Key takeaways:

– Letting out your holiday lodge can offset ownership costs and bring in income

– Understanding what running a buy to let involves will help you navigate the legal landscape and the guest management process

If you buy a holiday lodge with us, our Love To Let service makes things easier

What are buy to let holiday lodges?

Buy to let holiday lodges are purpose-built, fully furnished leisure homes designed for short-stay guests. Unlike residential properties, they sit on parks that hold the correct holiday licences, meaning they can only be used as holiday accommodation rather than a full-time residence.

Owners can enjoy the lodge themselves for part of the year and let it out during other times to generate income. Many holidaymakers now prefer lodge stays for their privacy, comfort, and scenic surroundings – so there is usually year-round demand for renting out your lodge.

Can you rent out a holiday lodge?

In most cases you can rent out a holiday lodge. However, the ability to let your lodge isn’t automatic. The key considerations are:

Your ownership agreement: The specifics you’ve agreed to.

Park rules: Every holiday park has its own terms, restrictions and procedures around letting.

Park licensing: Only parks with the correct holiday licence (not a residential licence) can legally allow guest stays.

Lovat Parks’ Love To Let

Lovat Parks makes holiday letting simple and stress-free through our Love To Let managed service, designed for owners who want a reliable income without the hassle of running a rental business.

Key benefits include:

• Fully Managed Bookings: Lovat Parks handles marketing, pricing, enquiries, guest communication and secure payment processing.
• Professional Housekeeping & Maintenance: Your lodge is cleaned, inspected and maintained to high standards between every booking.
• Expert Revenue Management: Benefit from our pricing strategies and peak-period demand across Lovat Parks’ popular coastal and countryside hotspots.

Peace of Mind: With on-park teams available daily, both owners and guests enjoy security, support and an exceptional holiday experience.

What’s needed for holiday letting? Legal & regulatory

Buy to let holiday lodges in the UK come with legal requirements. Understanding these early helps avoid costly mistakes.

Do I need planning permission for a holiday let?

In most cases, you won’t need to apply for your own planning permission. Holiday parks already operate under their own planning consents.

However, there are situations where planning rules may affect how your lodge can be used:

• ‘Use Classes’: holiday lets are seen as different to second homes or main residences. A newly proposed C5 ‘Short-Term Let’ use class could soon apply to properties used as furnished holiday accommodation. While this mainly impacts residential properties converted into holiday lets, it’s important for holiday lodge owners to be aware of emerging rules.
• Article 4 Directions: Local councils can issue Article 4 directions, restricting short-term lets in certain hotspots. These typically affect urban areas (e.g., London, parts of Cornwall). Although, holiday parks with established planning use are usually exempt.

Top Tip: Always check your lodge’s existing permissions.

Your park operator (e.g. Lovat Parks)  will confirm:

• The type of planning licence in place
• Whether letting is permitted
• Any seasonal restrictions
• Occupancy limits
• How the lodge must be used throughout the year

This is why buying on a reputable park is essential.

What is the ’10-year rule’ for buy to let holiday lodges?

The 10-year rule refers to a principle in planning law:

If a property has been used as a holiday let continuously for 10 years without enforcement action, that use may become lawful through established use.

This does not grant permanent residential rights but can help protect the continued use of a lodge as holiday accommodation, if planning issues arise.

Most purpose-built holiday parks already have established rights, so the 10-year rule is more relevant to homeowners converting residential properties into holiday lets. Still, it’s useful background knowledge when researching the sector.

Holiday home letting insurance

Standard holiday home insurance isn’t enough if you plan to let out your lodge.

You will need specialist holiday home letting insurance, which typically includes:

• Public liability cover (often £2m–£5m)
• Loss of income if your lodge becomes unusable due to an insured event
• Accidental damage cover for guests
• Employer’s liability if you hire cleaners or tradespeople
• Legal expenses protection
• Contents and fixture insurance
• Many parks require certain insurance levels as part of their letting agreement
• Lovat Parks can recommend trusted insurers who specialise in holiday lodge letting cover

Financial benefits & tax implications

Letting your lodge can offer attractive financial advantages, so understanding how holiday lets are taxed  is worth your  time. 

What is the tax ‘loophole’ for holiday lets?

One widely discussed benefit is the Furnished Holiday Letting (FHL) status, often referred to as a “tax loophole for holiday lets”.

This isn’t a loophole in the traditional sense – it’s a legitimate tax category that offers generous allowances if your lodge qualifies.

To qualify as an FHL, your holiday lodge must meet three criteria:

• Be available to let for at least 210 days a year
• Actually let commercially for 105 days or more per year
• No long-term lets (more than 31 days) that exceed 155 days in total

Key tax advantages of FHL status:

• Mortgage interest relief: Unlike standard buy to let properties, you can deduct 100% of mortgage interest from your taxable income.
• Capital allowances: Claim on furniture, fixtures, equipment and appliances.
• Capital Gains Tax reliefs: Including rollover relief, business asset disposal relief and gift relief.
• Offset expenses: Site fees, utilities, insurance, marketing and maintenance are all allowable.
• Pension contributions: Income from FHLs may count as relevant earnings for pension purposes.

N.B.: Tax rules can change. Always seek advice from a qualified tax adviser.

Earning potential & running costs

It’s also important to know about the costs and processes involved in running a let. 

Holiday lodge letting income varies based on:

• Location
• Lodge size and specification
• Time of year
• Quality of the park
• Interior design and guest amenities

Expenses that can be offset by letting your holiday lodge:

• Pitch and site fees
• Utilities
• Cleaning and laundry
• Repairs and maintenance
• Insurance
• Bookings platform fees (if self-managing)
• Depreciation on fixtures and fittings

If you take on all of the guest management, expect to handle booking enquiries, check-ins and -outs, guest communication, emergencies, cleaning turnaround, reviews and payments.

Furnishing, presentation & maintenance

It’s best to make your lodge attractive, welcoming and easy to maintain if you buy with the goal of letting out.

Think of easy-clean floors, neutral colours, hotel-quality linens and modern appliances – all touches your guests will notice. First impressions matter – both in person and in photos.

What’s more, regular checks ensure safety and avoid costly repairs later. 

Your routine should include:

• Annual gas and electrical safety tests
• Boiler servicing
• Decking and exterior cleaning
• Deep cleans each season
• Rapid response to any reported issues

Making the decision: Is letting right for you?

Holiday lodge letting can be a rewarding way to offset costs and make the most of your property – especially in the months you’re not using it. 

But letting comes hand-in-hand with responsibilities, depending on how much of the guest management you take on.

With Lovat Parks’ Love To Let, you can enjoy all the advantages of holiday home letting while leaving the hard work to an expert, on-park team. Whether you’re exploring buy to let holiday lodges for the first time or looking to optimise an existing home, we’re here to guide you every step of the way.

Learn more about Love to Let

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