REGULATORY GUIDE

Stay fully compliant with London's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
August 21, 2025
United Kingdom
England
London
REGULATORY GUIDE

Stay fully compliant with London's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
August 21, 2025
United Kingdom
England
London

TL;DR

Rules

How to comply

Rules, Taxes & Penalties

Upcoming Changes

FAQs

GOV.UK: Self-catering & holiday let (Business Rates)

No single legal threshold. Treated case-by-case under planning (C3→C1 ‘material change of use’). London’s 90-night cap is unique to Greater London.

Short-term lets are legal in London, but the 90-night cap applies citywide. You can use a residential home as short-term “temporary sleeping accommodation” for up to 90 nights in a calendar year if the host is the council-tax payer for the property. Over 90 nights needs planning permission from the borough. There’s no tourist tax. Keep fire safety compliant using the government’s “small paying-guest accommodation” guidance. Declare income to HMRC; VAT at the standard rate applies if you are VAT-registered. Business rates can apply to dedicated holiday lets that meet the VOA thresholds.

Legality
Allowed, with a statutory 90-nights-per-calendar-year limit unless planning permission is obtained.
Night Cap
90 nights per calendar year without planning permission.
STR Register
No citywide STR register. Planning permission is required if you want to exceed 90 nights or if the council-tax payer condition is not met.
Risk
Unlimited fines are possible for failure to comply with a planning enforcement notice.

Key Rules at a Glance

Overview of requirements, authorities, and costs for short-term rental compliance
Requirement
What you need
Authority / Link
Cost / Time

Registration / Permit

No citywide STR register. Planning permission is required if you want to exceed 90 nights or if the council-tax payer condition is not met.

Max Nights

90 nights per calendar year without planning permission.

Planning / Zoning

Typical non-major planning applications are decided in around 8 weeks (up to 13 weeks for more complex cases), but timelines vary by borough.

Fee
£
528
No processing for the 90-night allowance. If applying for planning permission, expect roughly 8–13 weeks for a decision, subject to validation, consultation and borough workload.

Safety & Insurance

Carry out a fire-risk assessment, fit and maintain appropriate smoke/heat alarms, keep escape routes clear, provide guest fire-safety information and keep records, following the government’s small paying-guest guidance.

Tax

Income tax via HMRC. Business rates if available 140+ days & let 70+; else Council Tax. Rent-a-Room £7,500 (main home). Councils may charge up to 100% second-home premium from Apr 2025. FHL abolished 6 Apr 2025.

Step-by-Step: How to comply

Overview of requirements, authorities, and costs for short-term rental compliance
1

Using a London dwelling for short-term letting beyond 90 nights in a calendar year is a material change of use and needs planning permission from the borough. Typical non-major planning applications are decided in around 8 weeks (up to 13 weeks for more complex cases), but timelines vary by borough.

2

Apply if required. Planning application (fee ~£528). No city registration fee. Planning application fees vary by proposal/borough. Business rates vs council tax depends on VOA 140/70-day thresholds.

3

Income tax via HMRC. Business rates if available 140+ days & let 70+; else Council Tax. Rent-a-Room £7,500 (main home). Councils may charge up to 100% second-home premium from Apr 2025. FHL abolished 6 Apr 2025.

4

Carry out a fire-risk assessment, fit and maintain appropriate smoke/heat alarms, keep escape routes clear, provide guest fire-safety information and keep records, following the government’s small paying-guest guidance.

Your Short-Term Rental Compliance Guide

Overview of requirements, authorities, and costs for short-term rental compliance

Enjoy hassle-free hosting with Houst

  • Income tax: Declare profits to HMRC. The Furnished Holiday Let (FHL) regime is abolished from 6 Apr 2025 (1 Apr 2025 for Corporation Tax). Holiday lets are taxed like other property income.
  • Business rates vs Council Tax: A whole-home STR is on VOA business rates if it’s available 140+ days and actually let 70+ days in the prior year; otherwise it stays on Council Tax. You may qualify for Small Business Rate Relief.
  • Second homes premium: From 1 Apr 2025, English councils can apply up to 100% Council Tax premium on furnished second homes (local exemptions apply).
  • Rent-a-Room (main home only): Up to £7,500 tax-free when letting a furnished room in your only or main home (shared → £3,750 each). Not for whole-home STRs.
  • Business rates for self-catering & holiday lets (Gov.uk)

    Edge Cases & Exemptions

    • Some boroughs (e.g., City of London, Westminster, RBKC) actively enforce beyond 90 nights.

    • Leases, head-leases and building rules often prohibit or restrict short-lets regardless of planning status.

    • Mortgage and insurance terms may restrict short-term letting; obtain written consent.

    • Dedicated STRs may be assessed for business rates (and lose council-tax status) if they meet VOA thresholds.

    Penalties & Enforcement

    • Boroughs can issue enforcement notices where use exceeds 90 nights or the council-tax payer condition is not met.

    • Failure to comply with an enforcement notice is a criminal offence and can attract unlimited fines on conviction.

    • Platforms may cap entire-home listings at 90 nights automatically, but compliance remains the host’s responsibility.

    Unlimited fines are possible for failure to comply with a planning enforcement notice.

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    GOV.UK: Self-catering & holiday let (Business Rates)

    No single legal threshold. Treated case-by-case under planning (C3→C1 ‘material change of use’). London’s 90-night cap is unique to Greater London.

    Do I need planning permission in London?
    Is there a night cap or 90-day limit in London?
    Do I need to register or get a permit?
    What taxes do I need to pay for short-term lets?
    What safety requirements do short-term lets need to meet in London?

    Tools & Resources

    Planning Guidance
    GLA — Short-term and holiday lets in London (90-night rule)
    Fire Safety Guidance
    GOV.UK — Small paying-guest accommodation: fire safety
    Tourist/Local Tax Guidance
    Business rates for self-catering & holiday lets (Gov.uk)
    National Safety Guidance
    Home Office: Small Paying-Guest Accommodation (fire safety)
    National Tax Guidance
    GOV.UK: Self-catering & holiday let (Business Rates)
    Regional Safety Guidance

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