Holiday letting in Somerset

Somerset is less famous than its neighbours for holidays, and that works in owners' favour when the offer is right. Exmoor and the coast at Porlock, Minehead and Dunster attract walkers and families; the Quantock Hills and the Somerset Levels bring nature lovers; Wells, England's smallest city, Glastonbury and Frome appeal to culture and food audiences. Festival weeks around Glastonbury create sharp peaks. Farmhouses, converted barns and cottages in villages with a good pub are what guests look for.

Where planning decisions are made

Somerset Council is the planning authority for most of the county, while the Exmoor National Park Authority decides within the park. Neither runs a short-let scheme. Nationally, England has no licence and no nightly cap outside London; the government says its register should be fully operational by March 2027. What can catch owners out is the history of a building. Many rural conversions were permitted for holiday use only, or tied to agricultural or local workers. Such conditions shape both your business and your resale value.

Council tax: the April 2025 change

Somerset Council decided in December 2023 to charge a 100% premium on second homes, and has done so since 1 April 2025. Owners of furnished homes they use only part of the year therefore pay double. A holiday let that is available for 140 nights and actually let for 70 in the same 12 months falls under business rates instead, where small-business relief can make a large difference. Income from lettings is taxed as ordinary property income since the furnished holiday lettings regime ended.

Five things we would check

• The planning permission and any occupancy condition.
• Mortgage and insurance terms that allow holiday letting.
• Fire risk assessment, gas and electrical safety certificates.
• Access for cleaners and maintenance in remote spots.
• A realistic plan for winter, when demand thins outside Christmas.

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Gorges, murmurations and a power station

The Mendip Hills bring a different visitor from the coast: Cheddar Gorge and its caves, Wookey Hole and the climbing crags draw day-trippers who can be tempted to stay. In winter, starling murmurations over the Avalon Marshes reserves at Shapwick Heath and Ham Wall attract crowds at dusk, a rare draw in the low season. Glastonbury Abbey and the Tor pull spiritual and heritage visitors all year, beyond festival week. Exmoor was the first international dark sky reserve in Europe, and the West Somerset Railway runs steam trains between Bishops Lydeard and Minehead.

A major source of demand has nothing to do with tourism: the construction of the Hinkley Point C nuclear power station near Bridgwater has brought large numbers of contractors needing furnished stays, often for months. Bridgwater's illuminated carnival in November and the Royal Bath and West Show at Shepton Mallet add event peaks, and Taunton's county cricket ground brings sports visitors.

How we would use this

• Near Bridgwater, a house with parking for vans and a work-friendly layout can be let to contractors on longer bookings.
• On the Levels, flood history and insurance deserve close checking before purchase.
• Around Cheddar, bike and climbing gear storage makes a listing stand out.

The second-home premium against the 70-night test

Somerset Council's 100% council tax premium applies from the first day a property is classed as a furnished second home, with no grace period once the December 2023 decision took effect on 1 April 2025. The business-rates route through the 140-available/70-let test is the only way out of that bill, and it requires the actual letting record, not a projection: an owner who lists a cottage for the full 140 nights but only manages 55 genuine bookings stays on council tax and pays double, even though the property was clearly being run as a holiday let all year.

Keeping the booking calendar and the platform payout records for the full 12-month period is therefore not just good practice for tax on rental income; it is the evidence a valuation appeal will ask for if the council disputes the 70-night claim.