How to Set a Floor Price for Your Holiday Let (UK 2026)

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Overview

Most owners can quote their headline nightly rate without thinking. Ask for the lowest rate they would accept for a quiet Tuesday in November and the answer is usually a guess, or a figure borrowed from the lodge next door. That gap matters more in 2026: guests ask for better rates more often, working stays are a growing share of off-season bookings, and platform fees have changed. A floor price turns each of those conversations from a gamble into a decision you have already made. This guide sets out how to find yours, with current figures for the costs behind it, and how to use it when an enquiry arrives at less than you hoped.

What a floor price is, and what it is not

A floor price is the lowest amount per night at which a booking still leaves you better off than an empty property. It is not your target rate, your average rate or the rate you advertise; it is the line you will not cross, worked out in advance so you never decide under pressure.

It is also not a single number. A two-night weekend in August, a Monday to Friday stay for a crew of four in February and a 28-night winter let carry different costs and different alternatives, so each deserves its own floor. The method is the same for all three; only the inputs change.

Frequently asked questions

Line	Three-night leisure stay	Four-night Monday to Friday crew stay
Changeover (clean, linen, welcome pack)	£125 over 3 nights = £42	£125 over 4 nights = £31
Energy and hot tub per night	£12	£16
Fixed costs per night (£9,000 over 150 nights)	£60	£60
Cost per night	£114	£107
Minimum margin at 20 per cent	£23	£21
Net floor per night	£137	£128

What is a floor price for a holiday let?+

It is the lowest nightly rate at which a booking still leaves you better off than an empty property, after cleaning, energy, consumables, your share of fixed costs and a minimum margin. It is a private figure used to accept, counter or decline requests, not the rate you advertise.

Should my floor price include platform commission?+

Work out the floor as the net amount that must reach your account, then gross it up for the channel. On a 15.5 per cent host fee a £137 net floor becomes about £162; on a 10 per cent all-in commission it becomes about £152.

How much lower should my rate be for a Monday to Friday crew stay?+

Let the costs decide rather than picking a percentage. A four-night working-week stay spreads one changeover over more nights than a two-night weekend, which lowers cost per night even though energy use is often higher. In the worked example the crew floor came out about seven per cent below the leisure floor.

Do I need a different floor in winter?+

Usually yes. Energy per occupied night rises, and under the October to December 2026 cap the average electricity unit rate is 26.32p per kWh. Demand is lower too, so the alternative to a lower-rate booking is more often an empty night. Most owners run a separate floor from November to March.

How does the end of the furnished holiday lettings regime affect my floor?+

Since 6 April 2025 mortgage interest is relieved only as a 20 per cent tax reducer rather than deducted from profits, and capital allowances on new fixtures and furnishings have gone. For a mortgaged property owned by a higher-rate taxpayer the after-tax cost of borrowing has risen, which pushes the floor upwards. Confirm the figures with your accountant.

How often should I recalculate the floor?+

At least twice a year and whenever a major input changes: a new energy tariff, a change in platform fees, a move between council tax and business rates, or a rise in your cleaner's charges. The Ofgem cap resets every three months, so a quarterly check costs little.

How to Set a Floor Price for Your Holiday Let or Contractor Accommodation (UK, 2026)

Overview

What a floor price is, and what it is not

Tell hosts what you are looking for

Step 1: Add up what one occupied stay costs you

Step 2: Spread fixed costs across the nights you will realistically let

Step 3: Decide the margin you will not go below

Step 4: Gross the floor up for commission

Different floors for different kinds of stay

Using the floor when a guest asks for a better rate

Mistakes that quietly lower your real floor

Frequently asked questions

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