Non-smoking holiday let in your annexe

Let a self-contained annexe, cabin or garden room to guests on a no-smoking basis, charged per night.

Bright self-catering holiday cottage living room with a no-smoking sign.
Startup cost£1.5k to £7.5k
Monthly revenue£500 to £2.5k
Time needed5+ h/week
First incomeWeeks
  • £1.5k-7.5k
  • Side hustle
  • From home

Estimates for a small start in the UK, not guarantees.

Official data

15,500 UK companies in this field, 34% registered in the last 2 years

SIC 55209 “Other holiday and other collective accommodation”. Source: Companies House, November 2026.

What it is

A self-contained annexe, outbuilding or garden room at your home, furnished for short self-catering stays. Guests agree to a clear no-smoking rule when they book.

Your first three steps

  1. Check with your mortgage lender, landlord or council whether you can let the space, and whether planning permission is needed
  2. Furnish and photograph the space, then work out a nightly rate by looking at similar lets nearby
  3. List it on one or two booking sites with a clear no-smoking rule and house rules, then ask early guests for reviews
Who pays

Holidaymakers, visiting relatives, walkers and cyclists, and people travelling for work or events nearby.

How it makes money

A nightly or weekly rate per stay, often with a cleaning fee. Rates usually go up in school holidays and around local events.

Skills that help
  • Friendly, clear communication with guests
  • Keeping a space spotless between stays
  • Basic organising and booking admin
Watch out for
  • Insurance that covers paying guests, as standard home insurance may not
  • Gas, electrical and fire safety checks and working smoke and carbon monoxide alarms
  • Planning permission, council tax or business rates, and your mortgage or lease terms, so check with your council and lender
  • Short-term let rules differ across the UK (Scotland has a licensing scheme), so check what applies where you live
  • Tax on rental income, so speak to an accountant or HMRC about what you need to report
  • Smoking rules only work if clearly stated and enforced, so set out any cleaning charge in your booking terms

Deep research report · UK

Everything you need to start: non-smoking holiday let in your annexe

Researched with live web search for United Kingdom: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to set up an annexe as a holiday let?

Startup costs are typically around £1,500 to £7,500, depending on the state of the space, furnishings and safety equipment. These are estimates. Check that your insurance covers paying guests, as standard home insurance may not.

How much can you earn from a holiday let annexe?

Monthly revenue is typically around £500 to £2,500, depending on your location, season and how often it is booked. These are estimates. Speak to an accountant or HMRC about what rental income you need to report.

What rules should I check before letting my annexe to guests?

Check gas, electrical and fire safety, including smoke and carbon monoxide alarms. Check planning permission, council tax or business rates, and your mortgage or lease terms. Short-term let rules differ across the UK, and Scotland has a licensing scheme.

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