LegislationIs Short-Term Letting Becoming More Attractive?
With long-let regulation tightening and demand for quality stays rising, we examine whether 2026 is the moment short-term letting becomes the smarter strategy.
The Renters' Rights Bill represents the most significant reshaping of the private rented sector in a generation. For landlords across Bath, Bristol and the wider South West, it changes the fundamental balance of the long-let model — and it is worth understanding exactly how.
The headline reform is the abolition of Section 21 "no-fault" evictions. Once in force, landlords will no longer be able to regain possession simply by serving notice at the end of a fixed term. Possession will instead rely on specific statutory grounds — sale, moving in, serious arrears — each of which must be evidenced and, if contested, argued before a court system already under strain.
For many owners, the practical consequence is a loss of flexibility. A property let on a long tenancy becomes harder to recover quickly, whether you wish to sell, refurbish, or simply change strategy.
The Bill also converts fixed-term assured tenancies into open-ended periodic tenancies, restricts rent increases to once per year, and gives tenants stronger rights to challenge those increases at tribunal. Combined with expanded requirements around property standards and a new ombudsman, the compliance load on self-managing landlords rises considerably.
None of these reforms apply to genuine short-term rental operations. Guests stay under licence, not tenancy; the owner retains full control of the calendar; and the property can be sold, occupied or repurposed at any time without possession proceedings. That control — alongside the income potential of well-located homes in Bath and Bristol — is why a growing number of landlords are asking whether their property could perform better as a short-term rental.
The right answer depends on your property, your mortgage terms and your goals. Short-term letting brings its own regulatory landscape — covered in our guide to short-term rental regulations — but for the right home it offers flexibility the long-let market can no longer match.
If you would like a clear-eyed view of how your property would perform, we prepare detailed income projections for owners across the South West — with no obligation.
Prima Stays provides boutique short-let management across Bath, Bristol and the Cotswolds — full service for a straightforward 15% fee.
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