Is it time to sell your short term rental property?
Do you have a property that you use as a short-term rental investment? You might have noticed an increase of other similar properties coming on to the market in their droves and be wondering why. This article explores some of the reasons that holiday property owners are leaving the industry and how you can protect your investment moving forward.
With the rise of platforms like Airbnb and Booking.com, the short-term rental market has evolved rapidly. What was once the domain of charming countryside cottages tucked away in Sussex’s most picturesque villages has expanded into a sea of listings, from modern apartments in Brighton to beachside bolt-holes in Shoreham and rural retreats around Lewes.
This surge in availability has opened up lucrative opportunities for property investors. The preference for Staycations over budget hotels means that many landlords have successfully tapped into a growing pool of holidaymakers and business travelers alike.
But while short term letting may still seem like a profitable path on the surface, we’re now seeing a noticeable trend across Sussex more and more owners are selling their short term rental properties. So why the shift? And as a property owner, is it time to re-evaluate your strategy?
Regulatory Changes and Financial Pressures
As estate agents working across Brighton, Lewes, Shoreham and beyond, we’ve seen the growing impact of government changes on the short-term let market.
From alterations in how income is taxed to stricter EPC (Energy Performance Certificate) requirements, it’s becoming harder to make the numbers stack up. If your property falls below compliance standards or is costly to maintain, the return on investment may be shrinking faster than expected.
Add to that the increased running costs, including higher utility bills, management fees, and platform commissions it’s no surprise that many landlords are reassessing their options.
What Are Your Options?
If your short term let is no longer performing as well as it once did, you’re not alone. Here are three routes many Sussex landlords are considering:
1. Switch to Long Term Letting
While this can seem like a natural step, it isn’t always straightforward. Many holiday lets are fully furnished, smaller in size, or located in areas less suited to commuting, factors that may not appeal to long term tenants.
2. Transfer to a Limited Company
Some landlords choose to transfer ownership of their property to a limited company, which can have tax advantages. However, this is a move that comes with its own complexities including legal, accounting, and mortgage considerations. We recommend getting advice from a specialist before making this decision.
3. Sell the Property
Selling your holiday let may seem like a last resort, but in reality, it can be a strategic move. You may even be able to maintain bookings during the marketing phase, and releasing the equity could open doors to new investment opportunities or simply reduce financial and time-related pressures.
A Changing Market Calls for Fresh Thinking
The Sussex property market is dynamic and continues to attract strong buyer interest, especially for unique, well-located homes that have previously served as holiday lets. Whether you're in the heart of Brighton, the countryside near Lewes, or along the coast in Shoreham, now could be the ideal time to take advantage of the demand.
At Oakley Property, we’re here to help you explore your options. Whether you're thinking of selling, switching strategy, or simply want to understand what your property is worth in today’s market, our team of local experts can provide the honest, informed advice you need.
📞 Let’s Talk About Your Next Step
Contact us today for a free, no-obligation valuation or chat about your property goals.
