REGULATORY GUIDE

Stay fully compliant with Reading's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
August 29, 2025
United Kingdom
England
Reading
REGULATORY GUIDE

Stay fully compliant with Reading's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
August 29, 2025
United Kingdom
England
Reading

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 Reading, but frequent whole-home guest stays can be a material change of use from C3 (dwelling) to visitor accommodation (C1/sui generis), which may need planning permission case-by-case. There’s no local night cap. Report income to HMRC; if the property is available 140+ days and actually let 70+ days in a year it can move from Council Tax to Business Rates. No local tourist levy.

Legality
Short lets allowed; planning permission may be required where use as short-stay visitor accommodation amounts to a material change of use (fact and degree).
Night Cap
None locally (London’s 90-night rule does not apply).
STR Register
No local STR register. Apply for planning permission if advised (material change of use). Government proposals for an England-wide register and new planning controls are in train.
Risk
High-intensity whole-home STRs—especially flats in conservation/article-4 areas—risk a change-of-use finding and enforcement; confirm planning status 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 local STR register. Apply for planning permission if advised (material change of use). Government proposals for an England-wide register and new planning controls are in train.

Max Nights

None locally (London’s 90-night rule does not apply).

Planning / Zoning

Most non-major applications target ~8 weeks (statutory).

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

Safety & Insurance

Complete a fire-risk assessment and follow the small paying-guest accommodation guidance; fit/maintain smoke alarms on each storey and CO alarms where required; test regularly and keep records. Royal Berkshire Fire & Rescue offers free Safe & Well 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

Risk of material change of use from C3 to visitor accommodation (C1/sui generis) if operated as frequent whole-home short-stay accommodation; consider pre-app. Most non-major applications target ~8 weeks (statutory).

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 small paying-guest accommodation guidance; fit/maintain smoke alarms on each storey and CO alarms where required; test regularly and keep records. Royal Berkshire Fire & Rescue offers free Safe & Well 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

  • Conservation Areas: Reading has multiple CAs (e.g., St Peter’s, Eldon Square, Castle Hill/Russell St/Oxford Rd, Christchurch, The Mount). Check CA maps/profiles before applying. https://www.reading.gov.ukReading Civic Society
  • Article 4 Directions: RBC has several Article 4s (including areas with patterned brickwork features) and targeted HMO Article 4 areas; while HMOs ≠ STRs, Article 4 signals tighter control in certain neighbourhoods—check the map. https://www.reading.gov.uk+1my.reading.gov.uk
  • Leasehold/headlease or block rules may prohibit STR regardless of planning.
  • Properties meeting the 140-day availability and 70-day letting thresholds may be moved to Business Rates (and potentially back-dated).
  • Penalties & Enforcement

    Report a suspected breach online and see the Local Planning Enforcement Plan for process/timescales. Unauthorised use can lead to an enforcement notice and, if ignored, prosecution. → Report a Planning Breach; Enforcement overview/LP Enforcement Plan; Register of enforcement notices.

    Smoke/CO Alarm Regulations: civil penalty up to £5,000 per remedial notice; planning breaches can lead to enforcement notices/prosecution; Business Rates can be back-dated if reclassified.

    📅 Airbnb Management in Reading, Fully Managed

    Stay fully booked without the hassle. Our Reading–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
    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 Reading?
    Is there a night cap or 90-day limit in Reading?
    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 Reading?

    Tools & Resources

    Planning Guidance
    Reading Borough Council – Planning
    Fire Safety Guidance
    Royal Berkshire Fire & Rescue: Safe & Well / smoke alarms
    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 Reading

    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
    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

    Reading Borough Council – Planning

    your local authority.