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Home / Who we help / Holiday lets
Last updated August 2026
Who we help
Business Water for Holiday Lets
The water bill for a holiday let is rarely the biggest line item, but it is one of the few that can be improved without operational change.
You can switch retailer. Holiday lets have had that right in England since 2017. Most never have. This page covers where holiday let water costs come from, how to switch retailer, and where overpayment usually hides.
| Wholesale supply | Comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others). |
|---|---|
| Contracting | Holiday lets can contract directly with retailers, and multi-site operators can contract centrally for portfolio pricing. |
| Biggest savings levers | Surface water drainage rebates, meter validation and tariff reviews. |
| Properties on business rates | 85,000 holiday homes in England and Wales, with 17,124 self-catering units on non-domestic rates in Scotland. |
| Market opened | England in 2017 and Scotland in 2008. |
| Licensed retailers | Around 20 are licensed by Ofwat to supply non-household water. |
Where the money goes
Why holiday lets pay more for water than they should
The usual story on a holiday let bill is that the tariff was set up for a business using water all year round, and nobody has looked at it since. The five checks further down are where that shows up.
A holiday cottage uses water in unusual patterns: a busy hot summer week with full occupancy can hit ten times the volume of a wet February week. That seasonality should drive a tariff with a sensible standing/usage split, but most holiday lets sit on a default commercial tariff designed for a steady-state office that never goes empty.
The other quiet drain on the bill is surface water drainage. A typical holiday let sits on a generously sized plot, with gardens, parking and sometimes paddocks. None of that drains to the public sewer, but the retailer charges for surface drainage on the building footprint plus surrounding hardstanding by default. Documenting where rainwater actually goes recovers up to six years.
Where it shows up
The five areas holiday lets overpay
Where holiday lets overpay and why it matters.
Standing charges through low season
Default tariffs charge the full daily standing fee year-round, even when the property is empty for weeks. A tariff review that includes checking the meter size the charge is based on can show whether you are set up correctly.
Surface water drainage on garden/parking
Charged on the site footprint by default, but how surface drainage is assessed depends on your regional wholesaler. Where driveways, gardens and patios drain to soakaways or grass rather than the public sewer, the charge can be challenged, and in many wholesaler regions rebates can be backdated.
Leaks running unnoticed between stays
An empty property should use next to no water. A dripping ballcock, running overflow or hidden underground leak can run for weeks between changeovers before anyone notices. Comparing meter readings between stays catches it early.
Bills based on estimated readings
Holiday let usage swings sharply between seasons, so estimated readings are often wrong. A winter bill can assume summer levels of use. Submitting regular actual readings keeps charges in line with what the property really used.
Multi-property portfolio paying default tariff per unit
Owning three or more lets and not having a portfolio-rate contract leaves money on the table, as retailers can discount on a single multi-site contract.
Results
Case studies
Contracted rates 60% below the default out-of-contract rates the owner would have paid.
Moved from a default tariff to a better retailer with lower pricing. Full case study to follow.
Case study coming soon
Worth knowing
Business rates decide which market you are in
A holiday let sits in the business water market only while it is rated for business rates. In England that means being available to let for 140 nights a year and actually let for 70, a test the VOA has applied since April 2023. The Scottish Assessors run the same day counts north of the border.
The test has teeth. In the year after it came in, around 10,700 self-catering properties in England came off the business rates list, and most of those moved back to council tax and a domestic water tariff with it. If your property passes the day counts, it belongs on a commercial contract you have chosen rather than a default one.
The market
Can holiday let owners and agents switch water supplier?
Yes. England’s non-household water market opened to competition in April 2017 and Scotland’s opened in 2008, so every holiday let can choose a different water retailer. Wholesale supply still comes from your regional water company; only the retailer (the company that bills you and reads your meter) changes.
The 12 retailers below are all licensed by Ofwat to supply non-household water. Pricing, service and sector experience vary from retailer to retailer.
Choose your route
Routes to procurement
Three ways operators in this sector typically bring a new water contract in. Each comes with its own trade-off between control, effort and how sharp the price lands.
Owner-direct contract
Owner signs straight with a licensed retailer. Best for single-property owners who want a sharper rate. You handle the comparison and switch yourself.
Letting agency portfolio scheme
Some holiday-letting agencies offer a portfolio water contract their owners can opt into. Compliant, fast, but you’re tied to whichever retailer the agency negotiated with.
Broker-led market test
A water broker compares the market for you, handles the paperwork and manages the switch from start to finish.
Why choose The Business Water Shop
- Award-winning independent brokerage, not owned by or tied to any water retailer.
- Rated 5 stars on Google and 5 stars on Trustpilot by UK businesses.
- Experts with experience in business water for holiday lets and short-stay accommodation.
- We compare quotes from up to 14 licensed retailers.
- We handle the whole switch, from the comparison and paperwork to the supplier contact.
- One point of contact for multi-property portfolios.
Questions
Holiday let water FAQs
Do holiday lets pay business water rates or domestic?
Holiday lets that are commercial-rated for council tax / business rates pay non-household water rates, which is the open market we operate in. Holiday lets still on domestic council tax are on a residential water tariff and can’t switch retailer. Check with your council if you’re unsure.
Does this apply to Airbnbs and serviced accommodation?
Yes. It depends on how the property is rated, not the platform you let through. In England, a self-catering property is assessed for business rates by the VOA once it is available to let for 140 nights a year and actually let for 70. A business-rated property is on non-household water and can switch retailer.
What about holiday lets in Scotland?
Scotland’s business water market has been open since 2008, longer than England’s. The Scottish Assessors apply the same tests (available to let 140 days, actually let for 70) to move a property onto non-domestic rates, and unmetered Scottish supplies are charged on rateable value rather than what you use. See our guide to assessed water charges and our Scotland page.
How does seasonality affect the bill?
Standing charges run year-round even when occupancy is zero, and usage swings sharply between peak and off-season. That makes it worth reviewing the whole tariff, the standing charge and the unit rate together, against how the property is actually used across the year, rather than sitting on a default commercial tariff.
My property is in a remote village. Are all 12 retailers actually available to me?
Yes. The retailer relationship is contractual. They bill you and read your meter. The wholesaler (the regional water company) supplies the water. Geography only affects who the wholesaler is, never which retailer you can choose.
I rent out via a managing agent. Can the agent switch on my behalf?
Only with written authority. The contract sits in the legal owner’s name unless explicitly assigned. Most owners switch themselves once the agent flags it’s worth doing.
How do I get a quote?
Send a recent water bill from one of your properties. The SPID, annual cubic-metre volume and current retailer are all on it. We come back within two working days with an alternative quote and a flag if anything looks worth auditing for historic refunds.
