Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 10 February 2025 to Question 27711 on Holiday Accommodation: Taxation, what quantitative information her Department holds on (a) the number of properties converting between longer-term rentals and short-term holiday lets, (b) comparative tax advantages between short-term holiday lets and longer-term rentals and (c) property investment patterns that demonstrate potential market distortion.

The Government will abolish the Furnished Holiday Lettings (FHL) tax regime from April 2025. The FHL tax regime has created a distortion that favours short-term holiday lets over longer-term rentals, by providing a tax incentive to invest in and provide the former over the latter. Abolishing it will equalise the tax treatment of FHL and non-FHL landlords' income and gains, making the tax system fairer.