TL;DR
London's short-term rental rules are tightening on multiple fronts. The 90-day cap remains in force, a national registration scheme is expected in 2026, a new C5 planning use class has been proposed, the FHL tax regime was abolished in April 2025, and Section 21 no-fault evictions end in May 2026. This guide covers everything that has changed and what is coming next for London hosts.
- 90-day cap: Still 90 nights per calendar year for whole-property lets in Greater London.
- Registration: National scheme expected 2026. Every STR property will need a registration number.
- Planning: C5 use class proposed. Local councils could require planning permission for STR conversion.
- Tax: FHL regime abolished April 2025. Mortgage interest restricted to 20% credit.
- Source: GOV.UK - STR registration scheme
This guide is general information, not legal advice. Rules are actively evolving. Check GOV.UK and your local borough for the latest. Updated May 2026.
Table of Contents
.webp)
.webp)
🚀 Start & Scale Your Airbnb Business with Houst
Join Houst’s Airbnb Business Partnership Program to start, manage, and grow your short-term rental business. With expert marketing, automation tools, and dynamic pricing strategies, we help you maximise earnings and scale faster.

⭐ Rated 4.8/5 by 2,500+ Hosts

1. The 90-day rule (unchanged)
The 90-night cap on whole-property short-term lets in Greater London remains in force under the Deregulation Act 2015. The limit resets on 1 January each year. Hosted stays (owner present) are exempt. Airbnb blocks listings automatically at 90 nights.
The Mayor of London and several inner boroughs have called for a reduction to 30 or 60 nights, but no change has been legislated. For the full breakdown, see the guide to the London 90-day Airbnb rule.
2. What is coming
2.1 National registration scheme
The Levelling Up and Regeneration Act 2023 gives the government powers to create a mandatory STR registration scheme. Every property will need a unique registration number displayed on all listings. Platforms will verify numbers or delist unregistered properties. Civil penalties of up to 5,000 pounds. The secondary legislation has not yet been enacted but is expected in 2026.
2.2 C5 planning use class
A new planning use class "C5" for dedicated short-term lets has been proposed. Existing STR properties would be automatically classified as C5. New permitted development rights would allow conversion between C3 (residential) and C5, but local authorities could remove this right via Article 4 directions in high-pressure areas. London boroughs are likely to be among the first to use Article 4.
2.3 Section 21 abolished (May 2026)
No-fault evictions end on 1 May 2026. After using the new Ground 1A (sale) to regain possession, landlords cannot re-let the property (including as an Airbnb) for 12 months. For the full guide, see the article on Section 21 abolition.
3. Tax changes already in effect
The Furnished Holiday Lettings tax regime was abolished from April 2025. London hosts have lost unrestricted mortgage interest deduction, capital allowances, and Business Asset Disposal Relief. Mortgage interest is now restricted to a 20% basic rate tax credit. For the full breakdown, see the guide to Airbnb tax in the UK.
The 100% council tax premium on second homes is being rolled out by councils across England from April 2025. If your London property does not qualify for business rates (140/70-day threshold), you may face double council tax. See the guide to Airbnb council tax.
4. What to do now
- Track your 90 nights carefully across all platforms (not just Airbnb).
- Prepare for the registration scheme by keeping property records, safety certificates, and letting history ready.
- Check your lease, mortgage, and insurance before listing.
- If you are a landlord considering switching from long-let to STR, factor in the 12-month re-letting ban under the new eviction rules.
- Consider professional management to handle compliance, pricing, and multi-platform distribution. For costs, see the guide to costs of running a holiday let.
4. What London hosts should do now
The regulatory direction is clear: more registration, more enforcement, tighter planning rules. Here is what to action now rather than waiting.
4.1 Compliance checklist
- Track your nights: monitor your cumulative short-term let nights across all platforms. Airbnb blocks automatically at 90, but if you list on multiple platforms you must track the total yourself.
- Check your lease: if your property is leasehold, confirm there are no restrictions on short-term lets (stays under 90 days). Some leases explicitly prohibit this.
- Review your insurance: standard home insurance does not cover paying guests. You need specialist short-let insurance.
- Prepare for registration: the national registration scheme will require you to register your property and display a registration number on all listings. Get your property details, ownership documents, and safety certificates organised now.
- Understand the C5 use class: when the C5 planning use class for short-term lets is introduced, converting from C3 (residential) to C5 may require planning permission in some areas. Check with your local council for early guidance.
4.2 Plan for the 90-night cliff
After 90 nights, your property needs to earn differently. Many London hosts switch to 28+ day lets (which are exempt from the cap) for the remaining months. Others use the property personally or let it as a traditional assured shorthold tenancy. Plan your annual strategy around this transition rather than being caught off guard. See the guide to the London 90-day Airbnb rule for the full breakdown.
5. When professional management helps
London's regulatory complexity makes professional management more valuable here than in most UK cities. A management company handles:
- Night tracking across platforms to stay within the 90-night cap.
- Transition to longer-term lets after the cap is reached.
- Preparation for the national registration scheme when it launches.
- Dynamic pricing to maximise the 90 nights you have (capturing peak events like Wimbledon, fashion weeks, and summer demand).
- Multi-platform distribution to fill all 90 nights at the best possible rate.
- Compliance with leasehold restrictions, insurance requirements, and building management rules.
Management fees in London typically run 12-20% of booking revenue. For most well-located London properties, the higher occupancy and ADR that professional management delivers more than offsets the fee. For details, see the guide to Airbnb management fees. For London-specific options, see the guide to the best Airbnb management companies in London.
This guide is general information, not legal advice. London STR regulations are evolving. Always confirm current requirements with your local council or a qualified adviser.
.webp)
.webp)
🚀 Start & Scale Your Airbnb Business with Houst
Join Houst’s Airbnb Business Partnership Program to start, manage, and grow your short-term rental business. With expert marketing, automation tools, and dynamic pricing strategies, we help you maximise earnings and scale faster.

⭐ Rated 4.8/5 by 2,500+ Hosts




