Short-term letting in Gloucester and Cheltenham

Two very different towns share this market. Cheltenham lives by its calendar: the jump-racing Festival in March, then literature, jazz and science festivals, plus a steady flow of visitors heading into the Cotswolds. Gloucester, a short hop away, draws cathedral visitors, rugby fans, contractors and families at a more modest price point. Regency flats and townhouses in Cheltenham, and period cottages on the edge of the hills, are what guests search for most.

What the rules say today

England has no short-let licence yet. The government told Parliament in early September 2026 that a national register should be fully operational by March 2027; the details of what hosts will have to submit are still to be published. There is no nightly cap outside London. What does apply is ordinary planning law: Gloucester City Council, Cheltenham Borough Council or the relevant district decides case by case whether intensive letting of a home has become a material change of use. A flat in a converted Regency terrace, with shared entrances and residents above and below, is where that question is most likely to be raised.

Council tax or business rates

Both Gloucester and Cheltenham now charge a 100% premium on second homes, so a furnished property nobody lives in pays double council tax. A genuine holiday let can move to business rates instead, but only if it is available for at least 140 nights and actually let for at least 70 nights in a 12-month period. Miss those thresholds and you are back on a doubled council tax bill. Since April 2025 the furnished holiday lettings tax regime no longer exists, so profits are taxed like any other property income.

• Check your lease and mortgage for clauses against short letting.
• Carry out a fire risk assessment and keep gas and electrical certificates current.
• Plan occupancy so the 70-night test is met even in a quiet winter.

Our view

The Festival week alone does not make a year. Owners who do well here price the peaks firmly but build year-round demand from corporate stays in Gloucester and weekend breaks in Cheltenham. Tell us about your property; we study every request and tell you honestly whether and how we can help.

Docks, the Doughnut and a tidal wave

Cheltenham's largest employer is GCHQ, housed in the ring-shaped building nicknamed the Doughnut at Benhall. It brings visiting staff, contractors and new recruits looking for somewhere to stay while they search for a home, and they value discretion, good broadband and parking. Montpellier and the Promenade, with their Regency terraces, suit leisure guests; Pittville, around the Pump Room and the park, is calmer and close to the racecourse at Prestbury Park, which also stages meetings in autumn and April outside Festival week.

Gloucester's regenerated docks, with their Victorian warehouses, the outlet shopping at Gloucester Quays and the waterways museum, give the city a weekend offer. The cathedral's cloisters have appeared in several films, which still attracts fans.

Nature provides a stranger draw. On the largest tides, the Severn Bore, a wave that travels upstream towards Gloucester, can be watched from spots such as Minsterworth and is surfed by enthusiasts. Published predictions let owners anticipate visitors who come just for it. Cleeve Hill, above Cheltenham, is the highest point of the Cotswolds and a stage of the Cotswold Way.

• Festival week brings high prices but also large groups; a deposit and firm house rules protect a townhouse.
• Residents' parking zones cover much of central Cheltenham, so a driveway is worth mentioning.
• Guests visiting the Forest of Dean, west of Gloucester, often use the city as a base.