Airbnb Rules and Short-Term Letting in London: Complete 2025 Compliance Guide for Hosts

London’s short-term letting framework is often described as one of the most complex in the UK, shaped by strict london airbnb rules and long-standing housing protection policies. Hosts and property owners operating in greater London must navigate a system centered around the 90 day rule, a statutory limit intended to preserve housing availability for permanent residents and maintain stability within local communities. Although short-term rentals create meaningful economic benefits, they also trigger a web of local regulations, local rules and borough-level enforcement processes.

What this guide covers:

This 2025 guide provides a general overview of the full compliance landscape for short-term letting, including the Airbnb 90 day rule, planning permission requirements, tax duties, safety obligations and what hosts must do to avoid legal issues, especially hosts exceeding the limit of ninety days in a single calendar year.

Who this is for:

This guide is intended for property owners running entire home listings, individuals offering home sharing, and operators transitioning between short-term letting, holiday lets or longer term rentals. Whether you operate one entire property, several units or you're one of many property managers expanding into the sharing economy, understanding short-term rentals and their specific regulations is essential to hosting responsibly in greater London.

Why this matters:

London local authorities have tightened enforcement of short-term letting rules in recent years. Breaching the 90-night cap or operating without required planning permission can lead to enforcement action including hefty fines (typically up to £20,000) and forced cessation of listings.

What you’ll learn:

• The 90-night rule for short-term lets in Greater London

• When planning permission is required (and how to apply)

• Tax considerations (Council Tax, business rates, income tax)

• Safety, insurance and legal obligations for letting

• Common pitfalls and enforcement risk

• Step-by-step: From documentation to ongoing compliance

Understanding London’s Short-Term Let Legal Framework

In London, short-term letting is defined through legislation governing “temporary sleeping accommodation,” which refers to residential properties used for stays of under 90 consecutive nights in exchange for money. Because this temporary use differs from a traditional residential tenancy, local boroughs enforce protections designed to ensure that short stays do not displace permanent residents or undermine housing supply. The result is a system where short-term rentals are lawful, but only when the 90 day limit is respected or when a host chooses to obtain planning permission to operate beyond the annual quota.

London’s system applies across all 32 boroughs and the City of London, making the Airbnb 90 day rule universal throughout greater London. In practice, this means property owners must plan their booking strategies carefully, track occupied nights and understand the difference between holiday rentals, home sharing and commercial short-term letting.

The 90-night cap a.k.a. the 90-day rule

The 90 day rule is the core restriction governing short-term rentals in Greater London. Entire home listings — where the host is not present — may only be rented out for an aggregate of 90 nights in each calendar year. Once the limit of ninety days is reached, hosting must stop unless the host has secured planning permission to operate legally beyond the cap.

The purpose of the 90 day limit is to allow residents to earn occasional rental income while preventing large-scale conversions of housing into commercial short-term letting. Without these constraints, local authorities argue that long-term housing supply and neighbourhood balance are at risk.

Platforms like Airbnb automatically apply the rule, blocking bookings once a listing hits the statutory limit. However, the host retains legal responsibility for compliance. If property owners list on multiple short-term rental booking platforms, they must track all occupied nights cumulatively to stay within the limit and avoid legal violations.

Why the rule exists

London City Hall has long balanced tourism with housing preservation. The 90 day rule protects residential buildings, ensures space for permanent residents and prevents neighbourhoods from being overrun by commercial holiday lets. By limiting short-term letting, boroughs aim to maintain community cohesion while still enabling property owners to earn rental income and maximize earnings through responsible, compliant hosting.

Planning permission: When it’s needed

If you intend to let your home for more than 90 nights in a calendar year, you must apply for planning permission because extended short-term letting represents a material change of use from residential class C3 to a form of commercial use. Boroughs treat intensive short-term rentals similarly to serviced accommodation businesses, especially when multiple units or entire home listings operate year-round.

You need planning permission if:

• You want to exceed the 90 day limit in Greater London

• Your listing operates like a commercial serviced apartment

• You manage multiple units or operate as part of a larger portfolio

• Neighbours or the building freeholder challenge your activity

Many hosts find it helpful to seek professional advice to navigate the process, especially when the building has restrictive covenants or the local council imposes strict thresholds.

Eligibility and Required Documentation

Before you start hosting, make sure your property is eligible to operate as a vacation rental in Greater London, and that you have all the necessary documentation expected of a holiday let host.

Types of property and lettings

• Entire home listings → subject to the 90 day rule; planning permission required if exceeding the limit.

• Home sharing (letting a room while living onsite) → generally exempt from the 90-night cap but still must follow safety laws.

• Holiday lets operated professionally → often require planning permission even before reaching the cap.

• Longer term rentals (stays over 90 nights) → generally fall outside short-term letting law, though tenancy rules apply.

Regardless of category, hosts must check mortgage terms, lease conditions, insurance exclusions and local council rules.

Documentation and permission requirements

Before hosting, ensure compliance with:

• Leasehold permissions and freeholder consent

• Mortgage lender approval (many mortgages restrict short-term letting)

• Safety standards (fire, gas, electrical)

• Holiday-let or vacation rental insurance

• Proof of main residence, where required

• Records of rent, bookings and occupied nights

These checks support your status under the 90 day rule, verify whether you need planning permission and confirm whether your property is suitable for short-term rentals or better used for longer term rentals.

Operational Rules and Compliance Standards

Safety, insurance and other legal requirements

As a short-term let host you must comply with general letting safety standards, even though London does not always require a specific “short-let licence” for up to 90 nights.

Key obligations include:

• Working smoke alarms and carbon monoxide detectors as applicable.

• Gas safety certificate if gas appliances are present; electrical safety checks.

• Adequate insurance that specifically covers letting to short‐stay guests.

• Clear guest rules about fire escapes, bins/ recycling, minimum standards of behaviour – especially in flats with other residents.

Tracking and staying within the 90-night limit

• Keep an accurate log of all nights that your property is let (this includes nights booked via different platforms).

• On platforms like Airbnb the system may automatically block bookings from exceeding the 90 nights threshold for listings in Greater London.

• If you are nearing the cap, you may consider converting the listing to “90+ days” (mid-term let) or apply for planning permission if you intend to exceed.

Tax Obligations and Financial Requirements

Council Tax, Business Rates an Income Tax

• If you let your property on a short-term basis, you remain liable for Council Tax (if you occupy as your home) or may need to pay business rates if your letting is commercial in nature.

• Income generated from short-term lets is taxable; you must declare it on your self-assessment tax return according to UK HMRC rules.

• If the letting is genuinely incidental (e.g., letting a room while away), the Rent-a-Room relief may apply in some cases (when you let part of your main residence).

Financial risk: Exceeding the 90-night cap without permission

If you exceed the 90-night limit without having obtained planning permission, you risk enforcement by the local council including fines (often up to £20,000) and being ordered to cease letting.

Common Challenges and Solutions

Challenge 1: Tracking Nights Across Platforms

Solution: Maintain a central spreadsheet or use software linking all your short-term rental calendars so you never exceed 90 nights. Block off dates proactively once you’re approaching the limit.

Challenge 2: Leasehold/Mortgage/Insurance Constraints

Solution: Prior to listing, check your lease for flats (many prohibit sub-letting or holiday lets), check your mortgage lender’s terms (some forbid ‘serviced accommodation’) and speak with your insurance broker about specialist cover.

Challenge 3: Exceeding 90 nights or running as a business

Solution: If your business model is to let for more than 90 nights per year, start the planning permission process before you hit 90 nights. Contact your local borough planning department and apply for change of use. Adjust your listing strategy to either mid-term lets or limit to 90 nights until approval.

Challenge 4: Neighbour complaints‐driven enforcement

Solution: Implement guest rules around noise, waste, parking, recycling. Provide neighbours with a contact number and keep guest turnover managed. Good neighbour relations reduce the risk of complaints triggering inspection.

Penalties and Enforcement Actions

Violations of London’s short-term letting regulations are taken seriously by borough councils. Key enforcement features:

• Exceeding the 90-night cap without planning permission may lead to fines up to approximately £20,000.

• Council officers may issue “stop using” or enforcement notices demanding the property be taken off the short-let market.

• Platforms (like Airbnb) may remove or suspend listings when limits are hit or permissions absent.

• Leasehold/freehold or mortgage lenders may take action if you are in breach of your lease or mortgage terms.

Conclusion & Next Steps

Hosting in Greater London remains viable when done within the boundaries of short-term letting law. The 90 day rule, planning permission processes, local regulations and safety obligations ensure the balance between the tourism economy and the needs of permanent residents.

To get started:

1. Decide whether you will operate under or beyond ninety days in a calendar year.

2. Secure all permissions from lenders, freeholders or borough planning teams.

3. Track bookings across platforms to avoid legal breaches.

4. Follow all safety obligations.

5. Seek professional advice if unsure how to apply for planning permission or manage a growing portfolio of short-term rentals.

By understanding short-term letting rules, managing rent properly and respecting local communities, hosts can operate confidently, legally and profitably within London’s regulatory environment.

Additional Resources

For a deeper understanding of your obligations, consult the official UK government website for detailed guidance on regulations and safety requirements for short-term lets. It is also crucial to visit your local borough council's website, as each may have specific interpretations of planning permission and enforcement rules. For comprehensive details on declaring rental income and understanding tax liabilities, refer to the official HM Revenue & Customs (HMRC) website. Finally, if you plan to exceed the 90-night limit or manage multiple properties, seeking advice from a planning consultant or a legal professional specializing in property law is highly recommended to ensure full compliance.

FAQs

Is Airbnb legal in London?

Yes. Short-term letting is legal in Greater London as long as hosts follow the 90 day rule, adhere to local rental regulations and respect borough-level local rules. Most short-term rentals remain lawful when kept under ninety nights per calendar year, and when hosts understand whether they need planning permission for extended or commercial activity. Room-sharing through home sharing is also permitted year-round when the host lives onsite.

What is the 90-night Airbnb rule in London?

The Airbnb 90 day rule is a citywide application of the statutory 90 day rule in which entire home listings in greater London cannot be rented for more than ninety nights per calendar year unless planning permission has been granted. This safeguard preserves housing for permanent residents and ensures compliance with local regulations. Airbnb enforces an automated version of the 90 day rule, but hosts must track bookings across all short-term rental platforms.

Do I need planning permission to use my property as an Airbnb?

You do not always need planning permission. If you operate below the 90 day rule, your hosting generally falls within permitted residential use. However, hosts exceeding the limit in any calendar year, or those running intensive short-term rentals, must apply for planning permission with their local council. This is especially important for commercial-style holiday lets or full-service units. Operators often seek professional advice when applying.

Does the 90-day rule apply to all London boroughs?

Yes. All London boroughs and the City of London enforce the 90 day rule because it is part of citywide legislation. The system applies consistently across greater London, meaning all property owners of entire home listings must understand how short-term letting is regulated, how many nights are allowed, and how borough-level local authorities monitor short-term rentals to avoid legal breaches.

What taxes do I need to pay on my Airbnb income?

Hosts must declare all income generated from short-term letting. Depending on how the property is used, you may pay Council Tax or Business Rates. In some situations, especially where the property qualifies as a commercial holiday lets operation, Business Rates may be assessed. Declaring rental income is required regardless of how many nights you rent or what type of short-term rentals you operate. VAT applies only if turnover exceeds the national threshold.

Do I need a licence to operate an Airbnb in London?

London does not currently require a dedicated citywide licence for short-term letting. However, boroughs may impose additional expectations—especially when properties exceed ninety nights in a calendar year or transition toward longer term rentals. Always check whether your block, leasehold, or building management has its own specific regulations regarding short-term rentals, noise, guest access, or usage of an entire property.

Can my mortgage or lease stop me from hosting on Airbnb?

Yes. Many leases and mortgages restrict short-term letting or the use of a home for holiday lets. Freeholders, lenders, and building managers often enforce limitations to protect neighbours and local communities. Before renting, review all contracts, ensure the use complies with permitted rent arrangements, and confirm that your lender allows short-term rentals under the 90 day rule.