Holiday Lets in a Town Tourist Hotspot Face Shutdown Due to New Government Tax Rules....

A source told HBC Exposed that a number of property owners around the Hartlepool Marina have been contacted by the freeholder & told to end their Holiday Lets, or face potential action...

6th December 2024

Hartlepool’s Marina, a hub for tourism and short-term holiday rentals, is said to be facing a major shakeup, following reports emerging that the freeholder in charge of numerous blocks of flats in the area have contacted property owners instructing them to cease using their properties as holiday lets, following the UK government’s new tax changes for holiday lets set to be introduced in just months, potentially spelling the end for holiday letting in the town.

According to information given to Teesside Today by a source, property owners around Hartlepool Marina have reportedly been 'warned' by the freeholder that they must stop operating their properties as holiday lets or risk facing legal action. The timing of these notices is said to coincide with the government’s announcement during the Spring Budget in March, which outlined sweeping changes to the taxation of Furnished Holiday Lettings (FHLs).

Effective from the 6th April 2025, the FHL tax regime will be abolished, removing the favourable tax treatment that has long been a lifeline for holiday-let landlords. Instead, its claimed income and gains from such properties will be treated as part of an owner’s broader property investments & subject to the same tax rules as other property income.

Holiday Lets are said to be a crucial role in attracting visitors to the towns Marina & other nearby attractions..

This policy shift is poised to hit Hartlepool hard, where tourism's said to be a vital part of the town's economy, particularly within the Hartlepool Marina area, where holiday lets play a crucial role in attracting visitors. Critics argue that the new tax rules will discourage property owners from continuing to offer short-term holiday accommodations, as the financial benefits will no longer outweigh the costs.

As a result, Hartlepool could be set to see a huge decline in available holiday rentals, leading to a ripple effect on local businesses that depend on tourist spending. Small businesses, already said to be struggling with increasing bureaucracy and “red tape” from the local council, may now find it even harder to stay afloat.

The abolition of the FHL tax regime is said to be part of the government’s broader effort not only to simplify tax reporting for property owners, but also said to be a move to stop local people being unable to afford to live in their own community.

By treating holiday let income the same as other property income, the government claims the changes will streamline the process for landlords managing mixed-use properties. However, many argue this "simplification" comes at a high cost.

Hartlepool's said to be 'not alone' in facing these challenges. Tourism-dependent towns across the UK are likely to be bracing for the fallout in the new year. However, the situation in Hartlepool is particularly acute due to the additional pressure from local leaseholders, with reports suggesting that as many as 30 holiday lets in Hartlepool Marina have already been contacted & told by their freeholders to cease using their homes as holiday lets or face potential action.

A Tourism Industry in Crisis

The end to a number of holiday lets in the towns Marina could have devastating consequences for the areas already struggling tourism industry

Hartlepool’s tourism industry, which has already been battered by economic downturns and chronic lack of investment, now faces an uphill battle. These tax changes could exacerbate the situation, leaving the Marina—a once-thriving tourist hotspot—littered with empty properties and declining footfall.

Local property owners and small business advocates are said to be calling on the government to reconsider the policy, emphasising its potential to devastate local economies such as Hartlepool, with the government's upcoming tax changes, combined with increasing tax burdens on those who let their homes as holiday lets set to create a perfect storm for the towns holiday-let market.

Whilst the intention to simplify tax reporting may sound reasonable on paper, the real-world implications for towns like Hartlepool are severe. Unless action is taken, its claimed the move could mark the end of an era for holiday lets at Hartlepool Marina, with far-reaching consequences for the town's economy and its struggling tourism sector.