Before you list: the 90-night rule

London has a specific regulation that applies to all whole-property short-term lets. You can let your property for up to 90 nights per calendar year without planning permission. Beyond 90 nights, you need a Change of Use application to your local borough council.

This cap applies to entire-property lets only. If you are renting a spare room in your home while you continue to live there, the 90-night limit does not apply. The count resets on 1 January each year. Airbnb enforces the cap automatically. Other platforms do not, so you must track your total nights yourself if you list on multiple sites. For a full breakdown of the rules, tax obligations and how to apply for planning permission, see the guide to Airbnb rules in London.

London short-let rules: what else to check

Lease and building restrictions

If your property is leasehold, check the lease for any restrictions on short-term letting. Many London leases prohibit lets of fewer than 90 days. Some managed buildings have additional rules. Breaching your lease terms can lead to forfeiture proceedings from the freeholder, regardless of what the council allows.

Insurance

Standard home insurance typically does not cover short-term letting. You need a specialist short-let insurance policy that covers public liability, contents damage from guests and loss of income. Confirm your buildings insurance (or your landlord's, if leasehold) permits short-term rental use.

Safety requirements

All London short-let properties must have:

• A valid Gas Safety Certificate (annual CP12 check).
• An Electrical Installation Condition Report (EICR).
• Working smoke alarms on every floor and a carbon monoxide alarm in any room with a gas appliance.
• A valid Energy Performance Certificate (EPC) rated E or above.

Preparing your property for guests

Photography

Professional photography is the single highest-impact investment you can make before listing. Listings with professional images consistently achieve higher click-through rates and booking conversion than those with phone photos. Budget £150 to £300 for a professional shoot. Ensure the property is clean, decluttered and well-lit before the photographer arrives.

Furnishing and amenities

Short-term guests expect a higher standard of furnishing than long-term tenants. The property should be fully furnished and equipped for a comfortable stay from day one. Essential amenities:

• High-speed WiFi (non-negotiable for all guest types).
• Fresh bed linen and towels for each guest.
• A fully equipped kitchen: kettle, toaster, microwave, hob, oven, cookware, crockery and cutlery.
• Iron and ironing board.
• Hairdryer.
• Cleaning products, bin liners and basic toiletries.
• Smart lock or key safe for self-check-in.

A smart lock eliminates the need for in-person key handovers and allows flexible check-in times. This is especially important if you are not managing the property yourself.

Pricing setup

Set your initial nightly rate based on comparable listings in your area. Search Airbnb for properties of similar size, quality and location within a 10-minute walk of yours. Note their nightly rates, minimum stays and occupancy (visible through calendar availability).

Once live, use a dynamic pricing tool (Beyond Pricing, PriceLabs or Wheelhouse) to adjust rates automatically based on demand, seasonality and local events. Properties using dynamic pricing consistently outperform those with static rates. For a comparison of what different London areas earn, see the guide to the best areas for Airbnb in London.

Management options

There are three approaches to managing a London short-let property. The right choice depends on how much time you have, how many properties you manage, and how hands-on you want to be.

Self-management

You handle everything: listing creation, guest communication, check-in coordination, cleaning scheduling, maintenance and pricing. This keeps the most revenue in your pocket but requires significant time. Expect to spend 5 to 10 hours per week per property during periods of high guest turnover. You need to be available for guest messages at short notice, including evenings and weekends.

Co-hosting

You share responsibilities with a trusted person. Airbnb allows you to add a co-host to your listing. Common arrangements include one person handling guest communication while the other manages cleaning and access. Co-hosts typically earn 10 to 20% of the booking revenue. This works well for hosts with a single property who want to reduce their time commitment without paying for full management.

Professional management

A management company handles the full operation: listing, photography, pricing, guest communication, cleaning, linen, maintenance and 90-night cap tracking. Houst's London management service covers all of this, including automatic transition to mid-term lets when the 90-night cap is reached.

Management fees vary. For a detailed breakdown of what professional management costs and whether the numbers work for your property, see the Airbnb management fees guide and the article on whether Airbnb management is worth it.

What to expect on revenue

Revenue from a London short-let property depends on location, property size, presentation quality and management approach. Here is what the actual data shows.

London performance data

Across Houst-managed properties in London, the average daily rate is £182, occupancy runs at 81.5%, and average annual net revenue for a central two-bedroom property is £38,148 after Airbnb fees and before management fees. For a city-by-city comparison, see the Airbnb returns by city guide.

These figures reflect the 90-night cap. Most London hosts earn from short-term lets during the highest-demand months and switch to mid-term lets (28+ nights) for the remainder of the year. Professional management helps maximise the revenue from both phases.

Location matters

A two-bedroom flat in Shoreditch will earn significantly more than the same size property in Zone 4. Central London properties command higher nightly rates but face more competition. Less central areas have lower rates but also less saturation. For a detailed area-by-area breakdown, see the guide to the best areas for Airbnb in London.

Revenue vs long-term letting

Short-term letting typically generates higher gross revenue than a standard assured shorthold tenancy for the same property. However, the costs are also higher: cleaning between guests, platform fees, management fees, insurance and higher wear and tear on furnishings. The net difference depends on your specific property and how it is managed. Use the Houst investment calculator to compare estimated short-let income with your current or expected long-term rental income.

Conclusion

Turning your London home into a short-term rental is straightforward once you understand the rules, prepare the property properly and choose the right management approach. The 90-night cap is the main constraint for whole-property hosts, but a combination of short-term and mid-term lets can keep the property earning year-round.

For a London-specific income estimate, enter your address into the Houst calculator. To talk to the London team about management, see our London service page.