Airbnb is important in London. It helps people earn extra money by renting a spare room or a full flat. However, there are rules to follow. London has set regulations for short-term rentals. If you host, it’s smart to know these rules to avoid problems. Let’s explain it step by step.
Is Airbnb Legal in London?
Yes, Airbnb is legal in London. However, it is not completely free. There are restrictions on how long you can rent your home. Local councils also have rules you need to follow. Knowing these will help you avoid problems.
The Laws About Short-Term Rentals in London
London's rules for short-term rentals are based on the Greater London Council (General Powers) Act 1973. This law lets people rent their homes for up to 90 days a year without asking for planning permission. If you rent for more than 90 days, you may need special approval.
The purpose of this Airbnb 90-day rule is to prevent homes from being used just for short-term rentals. London has a housing crisis. The government wants to ensure that homes are available for full-time residents.
The UK government is introducing a mandatory registration scheme for short-term rental properties. This means all hosts in England, including those in London, will need to register their properties. This ensures compliance with safety, licensing, and planning standards.
What’s the 90-Day Rule?
The 90-day rule is very important to understand. If you rent out your home on Airbnb or other platforms, you can rent it for no more than 90 nights in one year. When you reach that limit, you will need permission to keep renting.
Airbnb does this automatically. When your listing gets to 90 nights, it will not take any more bookings for the year. This helps hosts follow the rule, but it can be frustrating if you wanted to rent your place out for more time.
The government is also considering new laws that would make planning permission a requirement for renting out properties for more than 90 days. This change could impact hosts significantly, so keep an eye on updates from your local council.
How to Get Planning Permission?
If you want to rent your home for more than 90 days, you need to get approval from your local council. It can be hard to obtain, and some councils have stricter rules than others. Here’s how you can do it:
Go to your local council's website.
Find the planning permission section.
Send in an application to explain why you need more time for short-term letting.
Remember that councils might say no, especially in places with not enough housing. If you continue to rent without permission, you could get fines or face legal trouble.
What About Taxes?
When you earn money from Airbnb, you must pay taxes. It's really that simple. Any money you make from renting your property should be shared with HMRC. But there is good news: the Rent-a-Room Scheme allows you to earn up to £7,500 a year without paying taxes if you rent a furnished room in your house. This scheme doesn't work if you rent out the entire property.
Starting January 2025, Airbnb and other platforms will report users’ earnings directly to HMRC. This means your rental income will automatically be shared with the tax authorities. If you’re new to filing taxes, register for self-assessment by October 5 each year to avoid fines.
Keep clear records of your earnings. You will need them when you do your taxes. If you earn a lot from short-term rentals, you might have to pay business rates instead of council tax. Ask your council to find out what fits your situation.
Health and Safety Requirements
As a host, you need to keep your guests safe. Here is a simple checklist:
Put working smoke alarms on every floor.
Have a carbon monoxide detector if you use gas.
Check that your electrical wiring is safe.
Give clear instructions for emergencies, like fire exits.
These are not just nice features. They are laws you must follow. Guests want a safe place to stay. You could face problems if you do not meet these rules.
Leasehold and Mortgage Restrictions
If you hold a lease or have a loan, you should read the details closely. Many lease contracts and loan agreements have rules that do not allow short-term rentals. Overlooking these rules can cause big issues, like losing your lease or breaking your loan terms.
If you feel unsure, ask your landlord or mortgage lender for permission. Some may say yes, but others may not. It is better to ask than to risk legal problems.
Do You Need Insurance?
Airbnb gives some basic protection for hosts, but it might not cover all things. Regular home insurance does not usually cover short-term rentals. You should check into special short-term rental insurance. It can cover things like:
Damage done by guests.
Accidents or injuries on your property.
Income loss if something goes wrong with your property.
With new regulations requiring compliance with safety standards, having proper insurance is even more important. It protects you from unexpected issues and ensures peace of mind.
Recent Changes to Airbnb Rules in London
Regulations for short-term rentals are changing. Scotland has started a licensing system, and changes might happen in London too. The government is also talking about stricter rules. This could include needing planning permission for rentals that last over 90 days and setting up a national registration system.
To stay informed, look at your local council’s website or Airbnb’s host resources. These changes aim to meet the needs of hosts, guests, and local communities.
Common Mistakes Hosts Make
Many hosts do not know they are breaking the rules until it is too late. Here are common mistakes:
Going over the 90-day limit without permission.
Not telling HMRC about your income.
Overlooking health and safety rules.
Not following lease or mortgage guidelines.
These mistakes can cause fines, legal issues, or getting banned from Airbnb. You can avoid these problems by knowing the rules and following them.
How to Stay Compliant as a Host?
Follow these steps to make sure your Airbnb hosting is legal and easy:
Step 1. Follow the 90-day rule
Use Airbnb’s system to monitor your nights.
Step 2. Pay your taxes
Sign up with HMRC and keep track of your money.
Step 3. Meet safety rules
Put in alarms and look for any dangers in your property.
Step 4. Review your agreements
Ask for approval from your landlord or lender if needed.
Step 5. Stay updated
Watch for any changes in local regulations.
Conclusion
Airbnb is allowed in London, but you must follow certain rules. There is a 90-day limit for rentals, and you need to pay taxes. You also have to meet safety standards and get the right permissions. New changes, like needing to register and tighter enforcement, make it important to stay updated. Make sure to follow the rules, keep your guests safe, and enjoy hosting in this amazing city.
But let’s be real. Keeping up with all these rules can feel overwhelming. You need to know the 90-day limit. You also have to navigate planning permissions. Plus, you must make sure your property meets safety standards. That's a lot to handle. Now, with new rules like the need for registration and closer government checks, hosting in London is harder than ever.
UpperKey is here to help. We make hosting easy by taking care of everything you need. We handle local laws, bookings, and guest experiences. With UpperKey, you can enjoy Airbnb benefits without worrying about new rules. Let us do the hard work so you can focus on what matters. Hosting is now much easier.
FAQs
Q1. Do I need to ask for planning permission for Airbnb in London?
Yes, if you rent your property for over 90 days in a year, you will need planning permission.
Q2. What is the 90-day rule?
It’s a rule that restricts short-term rentals to 90 nights each year in Greater London. You need planning permission to go over this limit.
Q3. Do I need to pay taxes on Airbnb income?
Yes. You have to report your income to HMRC. However, you can use the Rent-a-Room Scheme if you meet the requirements.
Q4. Can I host on Airbnb with a lease or mortgage?
Check your lease or mortgage agreement. Many have rules about short-term rentals.
Q5. What safety measures do I need?
You need smoke alarms that work, a carbon monoxide detector, and safe wiring. Your property must be safe for guests.
