1. The new C5 use class in England

1.1 What it is

From January 2025, the UK Government introduced a new planning use class, C5, specifically for short-term rental properties. Previously, short-term lets fell into the C3 (dwelling house) category. The new C5 class separates short-term lets from standard residential use.

1.2 What it means for hosts

The C5 class does not automatically require planning permission. Properties that were already operating as short-term lets before the change are treated as existing lawful use. The key impact is that local councils can now use Article 4 directions to require planning permission for any new C3 to C5 conversion in their area.

1.3 Article 4 directions

An Article 4 direction removes the automatic "permitted development" right to convert from C3 to C5. Where a council issues an Article 4, you need to apply for planning permission before starting short-term letting. London already operates under a different framework (the 90-day rule), but other English councils are expected to adopt Article 4 directions in areas with high short-let density.

1.4 What to do now

Check with your local council whether an Article 4 direction applies or is planned for your area. If you are already operating, document your existing use. If you are planning to start, confirm the planning position before investing in setup. For London specifically, see our guide to the London 90-day rule.

2. Wales short-let rules

2.1 The 182-day threshold

In Wales, a property must be available for letting for at least 182 days per year and actually let for at least 70 days to qualify as a self-catering holiday let for business rates purposes. Below this threshold, it remains on council tax.

2.2 Licensing

The Welsh Government introduced a licensing scheme for visitor accommodation. All holiday lets and short-term rental properties must be registered and meet minimum standards. This applies to Airbnb, Booking.com, and any other platform listing.

2.3 Planning permission in Wales

Local planning authorities in Wales can require planning permission for change of use from C3 to holiday accommodation. Several Welsh councils have adopted supplementary planning guidance on short-term lets, particularly in tourist-heavy areas like Gwynedd and Pembrokeshire.

3. Scotland short-let licensing

3.1 The mandatory licence

All short-term lets in Scotland require a licence from the local authority under the Civic Government (Scotland) Act 1982 (as amended 2022). This has been mandatory since October 2023. Operating without a licence is illegal.

3.2 What the licence requires

Safety standards (fire, gas, electrical), insurance, maximum occupancy limits, and in some areas planning permission. Edinburgh operates a short-term let control area where planning permission is required for all new short-term lets.

3.3 How to apply

Apply through your local council. You will need to provide safety certificates, insurance details, and property information. Processing times vary by council. For the full process, see our guide to short-term let licence England for comparison.

4. When you definitely need permission

• Your property is in London and you want to let for more than 90 nights per year.
• Your property is in a Scottish local authority area (licence required for all STLs).
• Your council has issued an Article 4 direction removing C3 to C5 permitted development rights.
• Your property is in Edinburgh's short-term let control area.
• Your property is in a Welsh area where the council requires planning permission for holiday lets.
• Your lease or building management rules prohibit short-term letting.

5. When you probably don't

• You are letting a room in your own home while you live there (lodger, not short-term let).
• Your property is in England outside London, no Article 4 direction applies, and you are letting for fewer than 90 nights per year.
• Your property is in a rural area with no specific short-let planning controls.

If you are unsure, the safest approach is to check with your local council planning team before listing. A short email or phone call confirming your situation is free and protects you from enforcement action later.

6. How to check and apply

1. Identify your local authority. Your council handles planning applications and licensing.
2. Search the council website for "short-term accommodation", "holiday letting", "C5 use class", or "Article 4 direction".
3. Contact the planning team if the website is unclear. Describe your property (whole home vs room, how many nights, how often) and ask whether you need permission.
4. If permission is needed, submit a planning application or licence application. Allow 8-12 weeks for processing.
5. Keep records of your application, any council correspondence, and your operating history.

For how management helps with compliance, see our guide to Airbnb management fees. For the broader ROI case, see our guide to whether management is worth it.

7. FAQ

Do I need planning permission to Airbnb my home?

It depends on where you are. In England, the new C5 use class means councils can require permission via Article 4 directions. In Scotland, you need a licence. In London, you are capped at 90 nights without permission. In Wales, licensing rules apply. Check with your local council.

What is the C5 use class?

A new planning use class introduced in England from January 2025 specifically for short-term rental properties. It separates short-term lets from standard residential use (C3). Councils can use Article 4 directions to require planning permission for C3 to C5 conversions.

Does the 90-day London rule apply everywhere?

No. The 90-day cap applies only to Greater London. The rest of England has no automatic night cap, though local councils can impose restrictions through Article 4 directions under the new C5 framework. Scotland and Wales have their own rules.

Can my management company handle planning compliance?

A management company can advise on requirements and help with the process, but the planning application itself is submitted by you (the property owner). Management companies track night counts and ensure listing compliance, which is the operational side of staying within the rules.

What are the fines for short letting without permission?

In England, planning enforcement can result in enforcement notices and prosecution. In Scotland, operating without a licence can result in fines of up to GBP 2,500 and a criminal record. In London, exceeding 90 nights without permission is a planning breach that the council can enforce.

This guide is general information, not legal advice. Planning rules vary by local authority and change frequently. Always confirm current requirements with your council.