From 1st May 2026, major reforms of the Renters’ Rights Bill are expected to significantly reshape the private rental sector. The aim is to give tenants more security and rights, but for many landlords it also means less flexibility and more regulation when managing long-term rental properties.

Because of this, many property owners are now asking the same question: is it still worth renting long-term, or does a holiday rental make more sense?

Here are some of the key changes coming and why they are prompting some landlords to consider switching to short-term or holiday rentals instead.

No More Section 21 Evictions

The bill removes “no-fault” evictions, meaning landlords can no longer easily regain possession of their property without a specific legal reason.

WHY SWITCH? Holiday rentals operate on short bookings rather than long-term contracts, giving you far more control over when your property is available and who stays there.

Fixed-Term Tenancies Are Being Scrapped

Traditional fixed-term agreements will be replaced by rolling periodic tenancies, meaning tenants can remain in the property indefinitely unless legal grounds for eviction apply. Tenants will be able to leave at any point by giving two months’ notice.

WHY SWITCH? Holiday rentals give owners clear booking periods and the ability to control availability without the uncertainty of open-ended tenancies.

Rent Increases Will Be Restricted

Under the new rules, rent can only be increased once per year, and tenants will have the right to challenge increases they believe are above market value.

WHY SWITCH? Holiday rentals allow you to adjust pricing dynamically depending on demand, season, and local events, allowing you to maximise revenue.

Restrictions on Rent in Advance

Landlords will only be able to ask for one month’s rent upfront, removing the option to request multiple months in advance to reduce risk.

WHY SWITCH? With short-term stays, payment is taken in full before the guest arrives, reducing the risk of arrears.

More Tenant Rights and Obligations

The bill introduces additional rules around issues such as pets, discrimination, tenant protections and rental bidding wars.

WHY SWITCH? Holiday rentals operate under guest accommodation terms rather than residential tenancy law, meaning a lot less legal obligations.

The Bottom Line

The changes coming through the Renters’ Rights Bill are designed to improve conditions for tenants, but they also create new limitations for owners and landlords managing traditional rentals.

For some property owners, switching to a holiday rental offers:

• More control over the property
• Greater pricing flexibility
• Reduced risk of long-term tenant disputes
• Better property upkeep through regular cleaning and inspections
• The option to use the property personally whenever you want

Thinking of switching your Bath property from an AST into a holiday let? Contact us today for a free, no-obligation quote.