Northern Ireland's Short-Term Let Shake-Up: What it Means for North Belfast

For residents of North Belfast who own or use short-term rental properties, such as Airbnbs, significant changes are on their way. Northern Ireland’s short-term let market is set to face its toughest challenges yet with a combination of new taxes, stricter planning regulations specifically for Belfast, and a fresh government consultation on safety standards. This 'triple whammy' is creating a perfect storm for local hosts and could impact holidaymakers too.

Property owners operating short-term lets will feel the financial pinch. The Furnished Holiday Lettings (FHL) tax regime was abolished in April, meaning local hosts have lost valuable mortgage interest relief and capital allowances. They are now taxed similarly to standard residential landlords. Adding to this, the UK Autumn Budget announced a 2% rise in Property Income Tax rates from April 2027, pushing basic rate taxpayers to 22% and higher rate payers to 42% on rental profits. When profits are squeezed, many expect rental prices and short-term let rates to rise.

Belfast is seeing even tighter regulatory controls. Following the Belfast Local Development Plan Strategy, a Planning Appeals Commission (PAC) decision in 2025 clarified that any rental exceeding 90 days is considered 'permanent residential use.' This closes a loophole some owners used to avoid change-of-use planning requirements by claiming their property was a 'second home.' With new Supplementary Planning Guidance currently under consultation until January 2026, the city council is making it clear that converting residential homes into Airbnbs will no longer be a simple process.

Visitors can expect a more professional short-term let market, but potentially a more expensive one due to reduced profits for hosts and a potential reduction in available properties. The Department for the Economy launched a major consultation in October 2025 (open until January 6, 2026) to modernise the outdated 1992 Tourism Order. This review proposes stricter minimum quality standards for all overnight accommodation. While this is great news for safety and quality assurance, compliance costs are almost certain to be passed on to the consumer. This, combined with tax hikes for hosts, means a weekend break in Belfast could become more expensive compared to other European destinations.

Looking ahead, the recent UK Budget has also empowered local councils to introduce visitor levies, or 'tourist taxes,' to help fund local services. While not yet implemented in Northern Ireland, this is a power now available and could be another factor contributing to increased costs for visitors in the future.

Ultimately, these combined changes signal a significant shift towards a more regulated and professional short-term rental sector in Northern Ireland. While aiming to ensure quality and fairness, it’s likely to transform the landscape for both property owners in areas like North Belfast and those visiting our vibrant city.