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How we value self-catering accommodation, including holiday cottages and apartments
The rateable value is our assessment of the annual rent a business property could be let for on the valuation date. For properties like shops, offices or warehouses we can analyse actual annual rents to reach a rateable value.
For self-catering holiday accommodation – such as holiday cottages or apartments – annual rental evidence isn′t normally available so we apply a price per bed space on each individual property, based on its type, size and location, to produce its rateable value.
How do we work out the price per bed space?
The price per single bed space is worked out by looking at the profitability levels of a range of self-catering holiday properties. We look at the total income (excluding VAT) a typical property generated and then deduct the associated costs such as:
- Maintenance for the property and garden
- Water rates
- TV licenses
- Depreciation of fixtures.
Our calculation does not include the cost of any loan or mortgage used to buy the property.
When does a property qualify as self-catering holiday accommodation?
If your property is available for let for 140 days or more a year, it will be rated as a self-catering property.
Related FAQs and help pages
- I have some self-catering holiday accommodation – why have I been sent a valuation for business rates?
- Where did the information on the valuation about my self-catering holiday accommodation come from?
- How did you arrive at a rateable value for my self-catering holiday accommodation?
- What does single bed space mean?
- My self-catering holiday accommodation has fewer bed spaces than you have valued – is my rateable value too high?
- Why is other self-catering holiday accommodation valued for less bed spaces than they advertise?
- I no longer use this property for holiday lettings – what should I do now?
- I don′t actually let my holiday accommodation for more than 140 days a year – why should I pay rates?
- I sent you my receipts – have you taken these into account?
- Why can′t I pay council tax on my self-catering holiday accommodation?