The landscape of second home ownership along the South Coast has shifted significantly as we enter 2026. For years, the corridor stretching from Southampton to Chichester has been a magnet for investors and holiday home owners alike. However, (relatively) recent legislative changes have moved the goalposts. While the days of casual "hobby" hosting are fading, the region remains one of the most resilient and high demand pockets in the UK.

The primary challenge for owners this year is the full implementation of the April 2025 tax changes. With the abolition of the Furnished Holiday Let (FHL) tax regime and the introduction of 100% Council Tax premiums, the financial barrier to entry is higher. Success in 2026 requires a professional approach.

At Air Maison, we focus exclusively on the mainland South Coast corridor, covering Portsmouth, Southampton, Chichester, and Petersfield. Our local expertise is designed to help owners navigate these new regulations while maintaining the high yields this region is famous for.

The New Regulatory Landscape

Understanding the value of your investment in 2026 starts with a clear view of the new rules.

Council Tax Premiums

Local authorities in Portsmouth, Southampton, and Havant have now implemented the 100 percent Council Tax premium on properties that are occupied periodically. This essentially doubles the council tax bill for many second home owners, making it vital to ensure your property is generating consistent income to offset these costs.

FHL Abolition

The special tax status for Furnished Holiday Lets has officially ended. Short term rentals are now taxed similarly to standard buy to let properties. Most importantly, this means mortgage interest relief is limited to the 20 percent basic rate.

The Silver Lining

Despite these hurdles, our region possesses a Triple Threat Demand that many other coastal areas lack:

• Maritime and Corporate: Constant demand from the ports of Southampton and Portsmouth.
• High End Events: Seasonal surges from Goodwood and the Chichester Festival Theatre.
• Nature and Tourism: Year round appeal for hikers in Petersfield and the South Downs.

How to Beat the Second Home Squeeze

Positioning your property as a professional short term let is the best way to thrive under the new tax rules. Air Maison provides the infrastructure to make this possible.

Dynamic Pricing

Static seasonal rates are no longer enough to ensure a profit. We use real time data to surge prices during peak periods such as the Festival of Speed or the Southampton Boat Show. This ensures you capture maximum revenue when demand is highest.

Compliance Support

The new mandatory registration schemes for short term lets can be a bureaucratic headache. We assist our owners in ensuring their properties meet every safety and registration requirement, protecting your investment from potential fines.

Why the South Coast Corridor is the Best Investment

Investing in this specific geography offers a level of stability not found in rural holiday hotspots.

• Petersfield and Midhurst: A high barrier to entry and limited housing stock mean less competition for your rental.
• Southampton and Portsmouth: These cities provide a constant churn of business travellers and leisure guests, ensuring high occupancy even in the winter months.
• Chichester: Often cited as the jewel in the crown of the South Coast, this area commands some of the highest nightly rates in the country due to its proximity to the South Downs and world class sporting events.

Your Local Experts

Owning a second home in Hampshire or West Sussex is no longer a passive endeavour. To remain profitable in 2026, you must treat your property as a professional business. While the tax landscape is more complex, the enduring appeal of the South Coast means the rewards are there for those who adapt.

Is your second home ready for the 2026 tax year? Get in touch with the Air Maison team today for a bespoke revenue projection.