Is Airbnb legal in London?

Airbnb rentals are legal in London. The Deregulation Act 2015 allows homeowners to let their property on a short-term basis for up to 90 nights per calendar year without applying for planning permission. This applies to residential properties in all London boroughs.

Before 2015, any short-term let in London (under 90 consecutive nights) technically required a Change of Use planning application. The Deregulation Act removed this requirement for lets of up to 90 nights per year, making it straightforward for property owners to host on Airbnb and similar platforms.

The rules apply to whole-property lets. If you are renting out a spare room while you remain in the property, the 90-night cap does not apply.

London's short-let market

London is Houst's largest managed market. Across Houst-managed properties in London, the average daily rate is £182 at 81.5% occupancy, with average annual net revenue of £38,148 for a central two-bedroom property. For a full breakdown of London performance data compared to other cities, see the Airbnb returns by city guide.

Most London Airbnb listings are concentrated in central boroughs: Kensington, Camden, Westminster, Hackney and Southwark. For a detailed comparison of which London areas perform best for hosts, see the guide to the best areas for Airbnb in London.

The 90-night rule

The 90-night rule is the central regulation governing short-term lets in London. A residential property cannot be let on a short-term basis (stays under 90 consecutive nights) for more than 90 nights in total per calendar year.

What counts towards the 90 nights

Each night a guest stays counts as one night regardless of the number of guests. Bookings on Airbnb, Booking.com and other platforms all count. Nights you spend in your own home do not count.

What happens at 90 nights

Airbnb automatically blocks further bookings once a London property reaches the 90-night limit. Other platforms may not enforce the cap automatically, so hosts listing on multiple platforms must track their total nights manually.

Exceeding 90 nights without planning permission is a planning breach. The local council can issue an enforcement notice requiring you to stop short-term letting. Penalties vary by borough but can include fines.

Options after 90 nights

You can apply to your local council for planning permission to exceed the cap. Some boroughs are more restrictive than others. Alternatively, switching to longer stays (21+ nights) falls outside the cap entirely.

Licensing requirements

London does not currently have a specific short-term rental licence. However, hosts should be aware of the following:

For a comprehensive check, use the gov.uk Licence Finder.

Planning permission for short-term lets above 90 nights

If you want to let your London property for more than 90 nights per year, you need planning permission from your local council. This is a Change of Use application under the Town and Country Planning (Use Classes) Order.

How to check if you need permission

• If your property is your primary residence and you will let it for 90 nights or fewer, you do not need planning permission.
• If you are letting a spare room in your home while you remain in the property, the 90-night cap does not apply and no planning permission is needed regardless of duration.
• If the property is a second home or investment property used exclusively for short-term lets, you may need planning permission from the outset. Some councils treat year-round short-let properties as a Change of Use even if they have not exceeded 90 nights.

How to apply

1. Contact your local borough council's planning department to confirm whether your intended use requires an application.
2. Submit a planning application through the Planning Portal or directly to your borough council. Include a description of the property, the proposed number of letting nights, and details of how the property will be managed.
3. Pay the application fee. The standard householder fee is £258 (as of 2024). Fees may vary for Change of Use applications.
4. The council will assess the impact on the neighbourhood, including noise, waste management and the effect on housing availability.

Timeline and likelihood of approval

Most planning applications are determined within 8 weeks. The outcome depends on your borough's policy on short-term lets. Some boroughs (particularly in central London) are resistant to granting Change of Use for short-term letting due to concerns about housing supply. Others are more permissive.

To improve your chances:

• Demonstrate that the property will be professionally managed with clear guest policies.
• Show that the short-let use will not cause noise or disturbance to neighbours.
• Provide evidence of demand and the economic benefit to the local area.

Tax obligations for Airbnb income in London

Rent a Room scheme

If you let a furnished room in your own home (while you continue to live there), you can earn up to £7,500 per tax year tax-free under the Rent a Room scheme. This applies whether you let through Airbnb, Booking.com or any other platform. If your rental income exceeds £7,500, you must declare it on a Self Assessment tax return and can choose to either deduct the £7,500 allowance or claim actual expenses.

Property income allowance

If you let an entire property (not a room in your home), the first £1,000 of gross rental income per tax year is tax-free under the property income allowance. Income above £1,000 must be declared on a Self Assessment tax return. You can choose to deduct the £1,000 allowance or claim actual expenses (mortgage interest, maintenance, management fees, cleaning) instead.

What you need to declare

• All Airbnb income above the applicable threshold must be reported to HMRC via Self Assessment.
• If you let multiple properties, the £1,000 allowance applies to your total property income, not per property.
• National Insurance contributions may apply if HMRC considers your letting activity to be a trade rather than property income. This is more likely if you provide significant additional services (daily cleaning, meals, concierge).

Consult an accountant familiar with short-let income for advice specific to your situation. Tax rules can change between tax years.

How Houst simplifies Airbnb management in London

Houst manages properties across 27 cities including London, where we operate one of the city's largest managed short-let portfolios. Our London management service covers:

• Listing and pricing. Professional photography, listing creation across Airbnb, Booking.com and other platforms, and dynamic pricing that adjusts nightly rates based on demand, seasonality and local events.
• Regulatory compliance. We track the 90-night cap for each property and manage the transition to mid-term lets when the cap is reached, keeping the property earning year-round.
• Guest management. 24/7 guest communication, check-in and check-out coordination, and review management.
• Property care. Professional cleaning between guests, linen service, routine maintenance and quarterly property inspections.

For a breakdown of what management costs, see the Airbnb management fees guide. To see what your London property could earn, use the Houst investment calculator.

Conclusion

Airbnb is legal in London. The 90-night annual cap is the main constraint for whole-property hosts. Planning permission extends that cap but is not guaranteed. Tax obligations apply to all short-let income above the relevant thresholds. Professional management helps maximise the 90 nights you have and provides a compliant path for the remainder of the year.

For the full picture on London Airbnb performance, see our guides to Airbnb returns by city and the best areas for Airbnb in London.