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 are capped at 90 nights per calendar year for entire homes unless you have planning permission. Beyond 90 nights, using a dwelling as visitor accommodation is generally a material change of use. Report income to HMRC; if the property is available 140+ days and actually let 70+ days it may be assessed for Business Rates instead of Council Tax. No citywide tourist levy at present.

Legality
In Greater London, entire-home short lets are permitted up to 90 nights per calendar year without planning permission; exceeding that (or not meeting the council-tax condition) will usually require planning permission due to material change of use.
Night Cap
Yes — 90 nights per calendar year (Greater London statutory cap); Airbnb auto-enforces the 90-night annual limit for entire-home listings.
STR Register
No London-wide STR register. Planning permission is required to exceed the 90-night limit. A national registration scheme for England is in development—monitor DCMS updates.
Risk
Scaling a whole-home STR beyond 90 nights without planning permission risks enforcement—confirm your use-class position early.

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 London-wide STR register. Planning permission is required to exceed the 90-night limit. A national registration scheme for England is in development—monitor DCMS updates.

Max Nights

Yes — 90 nights per calendar year (Greater London statutory cap); Airbnb auto-enforces the 90-night annual limit for entire-home listings.

Planning / Zoning

Most non-major applications are determined in ~8 weeks (statutory targets vary by type).

Fee
£
528
Around 8 weeks for non-major applications (subject to validation/consultation).

Safety & Insurance

Complete a fire-risk assessment and follow the Home Office small paying-guest accommodation guidance; fit and maintain smoke alarms on each storey and heat/smoke detection as appropriate; provide CO alarms where required; test at changeover and keep records. London Fire Brigade offers home-safety advice/visits.

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

Exceeding 90 nights/year (or not meeting the council-tax condition) generally requires planning permission; pre-app strongly advised with your borough. Most non-major applications are determined in ~8 weeks (statutory targets vary by type).

2

Apply if required. Planning application (fee ~£528).

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

Complete a fire-risk assessment and follow the Home Office small paying-guest accommodation guidance; fit and maintain smoke alarms on each storey and heat/smoke detection as appropriate; provide CO alarms where required; test at changeover and keep records. London Fire Brigade offers home-safety advice/visits.

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

  • Airbnb 90-night auto-cap on entire homes (unless you show planning consent); long reservations (90+ days) don’t count towards the cap. Airbnb
  • Conservation Areas & Article 4: many boroughs (e.g., Westminster, RBKC, Camden) use Article 4 and strict heritage policies—expect higher scrutiny in central areas. RBKCwestminster.gov.uk
  • City disapplication power: boroughs can seek SoS consent to dis-apply the 90-night relaxation for specified premises/areas (rare—check your borough). Anthony Gold
  • Ratings: properties available 140+ days and actually let 70+ days may move to Business Rates (can be back-dated). GOV.UK
  • Lease/Block rules: headleases, building management rules and mortgages frequently prohibit STR regardless of planning.
  • Penalties & Enforcement

  • Report suspected breaches to your borough’s planning enforcement team (use borough portal or London.gov borough list). The City of London’s short-let page explains how the 90-night rule is applied in practice. London City Hall, City of London
  • Safety: failure to comply with a remedial notice under the Smoke/CO Alarm Regulations can attract a civil penalty up to £5,000 per notice. GOV.UK
  • Smoke/CO alarms: civil penalty up to £5,000 per remedial notice. Planning breaches can lead to enforcement action and prosecution.

    📅 Airbnb Management in London, Fully Managed

    Stay fully booked without the hassle. Our London–based team handles planning checks, permits, safety and tax setup—plus bookings, guest messages, and calendar sync—so you don’t have to.

    Start Hosting Smarter

    ⭐ Rated 4.8/5 by 2,500+ Hosts

    Graphic of a booking calendar with upcoming-booking cards, showing multi-platform sync and guest management.
    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
    Your London Borough Council (Local Planning Authority) – Planning
    Fire Safety Guidance
    London Fire Brigade: Home 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

    📈 Maximise Your Airbnb Earnings in London

    Unlock more revenue with smart pricing, gap-filling, and local market strategy—while we keep you compliant on planning, safety and tax.

    See What You Could Earn

    ⭐ Rated 4.8/5 by 2,500+ Hosts

    Dashboard with net-earnings bar chart, occupancy pie and activity feed, illustrating pricing optimisation and revenue growth.

    This guide is informational and not legal advice. Always confirm with

    Your London Borough Council (Local Planning Authority) – Planning

    your local authority.