Holiday let rules in the Cotswolds
The Cotswolds cover several councils, mainly Cotswold, Stroud and West Oxfordshire, with Gloucestershire Fire and Rescue Service covering most of it. Here is what applies to Cotswold holiday lets now.
Checked against official sources on 28 Sept 2026. This is general information, not legal advice.
What's specific to the Cotswolds
Second homes premium across the Cotswolds
Cotswold District Council, Stroud District Council and West Oxfordshire District Council all charge a 100% second homes premium from 1 April 2025. Cotswold District estimated about 1,500 second homes when it made the decision, around 365 of them purpose-built holiday homes that may be exempt. A holiday let on business rates is not affected; one that fails the 140/70 test stays on council tax and can be charged the premium.
Holiday-only planning conditions
A lot of Cotswold holiday accommodation, especially around the Cotswold Water Park, has a planning condition restricting it to holiday use, so it cannot be anyone's main home. Check any condition on your property before you change how it is used; it also affects which council tax exceptions apply.
When a short let needs planning permission
Cotswold District Council's short-term lets working group set out the test its enforcement team uses: whether letting a house short-term is a material change of use is "a matter of fact and degree", looking at things like the turnover of occupants and large group bookings. There is no Article 4 direction or blanket rule, so it is decided case by case.
Cotswold District Council: short-term lets working group note (PDF)
Fire safety: Gloucestershire Fire and Rescue Service
GFRS says the Fire Safety Order applies if anyone pays to stay in your premises, and that failing to meet it can lead to enforcement, prosecution, fines or imprisonment. Ahead of the 2026 Cheltenham Festival it published guidance for people opening their homes to visitors. West Oxfordshire is covered by Oxfordshire Fire and Rescue.
Read the guideGloucestershire Fire and Rescue: paying guest accommodation
What applies across England
The national short-term let register
A national register for short-term lets in England is on the way. It isn't in force yet; the government said in September 2026 it will be fully operational by March 2027. Hosts are expected to register each property and show a registration number on their listings. Fees and the exact details haven't been published.
Business rates or council tax: the 140/70 rule
Your holiday let is assessed for business rates instead of council tax only if it was available to let for at least 140 nights in the last 12 months, was actually let for at least 70 of them, and will be available for 140 nights in the next 12 months. The Valuation Office Agency decides, not the council.
Read the guideGOV.UK: business rates for self-catering properties
Furnished holiday lettings tax rules have gone
The special furnished holiday lettings (FHL) tax regime ended in April 2025. Holiday let income is now taxed like other property income, so mortgage interest relief is restricted to the basic rate and FHL capital gains reliefs no longer apply. Speak to your accountant about what this means for you.
Fire safety applies to every holiday let
Paying guest accommodation falls under the Regulatory Reform (Fire Safety) Order 2005. Every host needs a written fire risk assessment, suitable alarms and clear escape routes, and must give guests fire safety information. Fire services can and do prosecute.
Read the guideGOV.UK: making small paying guest accommodation safe from fire
Keep your Cotswolds holiday let compliant, automatically
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