Rent v Short term let v Air BnB

[ItsALongWayAway]

I've previously let my BTL on a long term basis, but I'm considering Air BnB or short term lets (mostly because I may want to stop renting it out later next year, but I know very little about it. A quick google tells me that my mortgage interest could be tax deductible as well as capital costs, but may be not from next year?

What costs do I need to consider for short lets or Air BnB? How can I find out whether the market is saturated near me, or if there is demand for my type of property? It does seem like everyone here is Air BnB'ing. I'd be looking to use the property myself on a fairly regular basis (but flexible about when).

Anything else I need to consider (CGT, mortgage type etc)?

No, your mortgage capital is not deductible. Nor is your mortgage interest. You can claim 20% of the finance cost (including mortgage interest) as a tax credit in a different section of the tax return. However it's worked out as the lower of the 20% tax credit, 20% of the profit and 20% adjusted income.

CGT is absolutely a consideration but honestly the level of incorrect advice you'll get posting on Mumsnet means it's not worth me wasting my time when we don't have all the info- pay an accountant and get proper tax planning advice in advance.

Also check your mortgage to see if you are allowed to let via Airbnb, many have clamped down on it.

Following!

In addition to the practicalities, I would consider the ethics.

There is a legitimate need for shorter rentals with contracts of less than a year. Demand for this varies by area, but it is an often underserved market. Admittedly this may be for good reason because of the legal issues surrounding tenants who have stayed for decent amounts of time.

Tourism and business housing doesn’t belong in residential areas. It creates problems for neighbors who have to deal with people who are not bothered about integrating into the neighborhood. It also
removes housing stock.

That's very helpful and exactly the sort of thing I've been wondering about, thank you. I will take advice but it's useful, to help formulate the questions to ask as I'm not very good at thinking on the spot.

I take your point. It is quite a mixed area (lets, homeowners, affluent families, students, young professionals, air BnBs, a few housing association and supported housing properties, with shops and offices on the main road). The community is fairly transient anyway.
I'm hoping to move back into the property in a year or so, I just need to make ends meet in the meantime.

A client at work set an Airbnb up and it was well booked out due to location but they were a bit taken aback by the demands of the clients/ongoing maintenance and it really dragged them down in the end plus the neighbours started to get annoyed with thoughtless parking/noise. They spent way too much money on a certain look and as a result, they were constantly having to get the sofa cushions cleaned/rugs cleaned/appliances repaired. They've now gone back to long term lets.