Ever since Airbnb revolutionized home-sharing—enabling anyone to earn extra income from a spare room or empty apartment—the rental market has never looked the same. What used to be a months-long contract suddenly became a matter of days, perfect for holidaymakers seeking short breaks and city getaways. Property owners in London and beyond discovered a simpler, more profitable way to fill vacancies, while guests could find a place to stay with minimal fuss and lower fees. This seismic shift redefined how we think about travel, accommodation, and the very nature of renting.
What are short-term lets?
In the home-sharing industry, a short-term let generally means a residential stay lasting anywhere from a few days up to a few months—often ideal for holiday rentals or business trips. Stays over three months are often considered mid-term lets, while those over six or twelve months fall into long-term rental territory.
There isn’t always a strict line drawn in the sand, as some property owners and tenants make flexible arrangements to accommodate lifestyle or market changes. However, it’s helpful to know these general categories. As of 2025, demand for flexible accommodation continues to grow, especially with travelers and professionals taking advantage of remote or hybrid work arrangements.
The London-Specific Rule: The 90-Day Limit
A key regulation still enforced in Greater London is the 90-day rule:
You can let out your entire property for up to 90 days per calendar year (January 1–December 31) without special planning consent.
If you exceed that 90-day threshold, you must secure the correct planning permission (often referred to as “Temporary Sleeping Serviced Accommodation” permission).
For hosts using popular platforms like Airbnb, the system now automatically blocks bookings once you hit that 90-day cap, unless you’ve provided evidence of the proper permit. These rules are still firmly in place in 2025, despite discussions about potentially revising them.
How to Apply for Planning Permission? (If You Exceed 90 Days)
To apply for planning permission, it’s as simple as getting in touch with your local councils. This is known as Temporary Sleeping Serviced Accommodation planning permission. You need apply online through the government site, and the process begins by selecting your borough. Each borough has its own procedure, but you will be asked housing supply, at a minimum, a flood risk assessment, land registry documents and a fee of around £400.
Your application could take up to 2 months to be approved and processed.
If you're applying for a building permission change in Greater London, there are several areas where the authorities will consider it against the flow of the neighbourhood or property. For example, when an apartment is located in a predominantly residential area or building, then a high turnover of visitors to the area can impact the sense of local communities. Any threat of crime or disturbance to the other local residents will be considered an infringement and is likely to affect the application. A steady flow of new guests will also have an impact on the local community 's typical practices: security, waste disposal, noise and acceptable behaviour. Any of these can cause disruption and would be considered a poor choice for a change in planning permission.
Who use a short-term serviced accommodation?
Holiday and business travelers remain the most obvious users, but demand has broadened since the rise of remote work in 2020 and beyond. By now, you’ll also see graduate students, digital nomads, event participants, festival-goers, and professionals on temporary assignments looking for short- and mid-term rentals. This increased market diversity offers new revenue streams for property owners, provided they adhere to all relevant regulations and maintain high standards of hospitality. If you can consistently deliver a quality experience, you’ll likely secure a steady stream of well-vetted guests.
Can I rent out a room, not a whole flat?
Yes, you can. Crucially, the 90-day limit applies only to entire properties, whether they’re flats, apartments, or houses. If you choose to rent out just a room while you also occupy the premises, there’s no specific cap on days. Be aware, however, that letting rooms could affect any Council Tax discounts or exemptions you may claim. In a city where both space and affordability are ongoing concerns, room rentals can be an attractive option for renters and a stable income source for owners who don’t mind living alongside guests.
What happens if you exceed the London 90-day Airbnb limit?
Airbnb will automatically terminate your rentals. If you've reached your 90 consecutive days limit, a planning application can take several weeks to 2 months to be processed. The term runs by each calendar year—1 January to 31 December. If you're new to short term rentals and aren't sure how it's going to go, estimate how much of the calendar you've got left to fill. If you've spotted that you're heading towards the 90-day limit, then you've still got time to get hold of your construction permit. However with Upperkey, you no longer have to worry about the 90-day rule. we will deal with all the legality and paperwork, while you enjoy a guaranteed monthly income.
In January 2017, Airbnb included a new counter to keep track of their customers’ rentals. Airbnb will automatically close bookings to those who reach the 90-day limit for the rest of the year and during high season as well. To reactivate the calendar, they must submit an exemption form confirming they hold the appropriate permission.
What happens if I don’t apply for rental permission?
Exceeding the 90-day limit without permission constitutes a breach of London’s planning regulations and may lead to fines of up to £20,000. You also risk issues with local Council Tax if you’re underpaying or claiming a discount no longer applicable once your usage changes. This year, local authorities remain vigilant, and technology makes it easier for them to identify properties operating outside the regulations. Playing by the rules saves you from hefty penalties and protects your property’s standing in the community.
Side-step the 90-day limit in the Greater London Area
Plenty of online forums still tout ways to dodge the rule, but many of these “solutions” are legally questionable. The safest and simplest approach is to alternate short-term rentals with mid- or long-term tenancies. This strategy reduces the risk of fines and maintains good community relations. Another option is to secure the proper planning permission if you truly plan to operate short lets year-round, though you’ll need to factor in approval timelines and potential objections from neighbors or council members.
Can I combine long- and mid-term lets?
Yes, you definitely can. A popular workaround is to use the 90-day window for high-demand periods, often during summer or major events, and then switch to mid- or long-term tenancies for the rest of the year. This approach lets owners benefit from peak rates without running afoul of London’s short-let laws. Many Airbnb management companies, including UpperKey, excel at dynamic scheduling, ensuring each property is used to its maximum potential—short-term during profitable seasons, then locked in for medium or longer stays to avoid empty periods once the 90 days are used up.
Short-term rental checklist
It’s important not to enter into any form of property letting without thorough investigation.
The popular advertising multiple platforms provide an opportunity to create a rental agreement, but not everything you incorporate in them is enforceable by law. Looking into the legal rights for hosts and guests alike should be high on your to-do list.
Here are a few of the items that you should be considering when looking into letting a property for any duration in outer London:
1.Fire safety
The Regulatory Reform (Fire Safety) Order 2005 makes landlords/hosts responsible for providing adequate fire protection for the premises. You must carry out a fire risk assessment and keep it up to date.
2.Gas safety
Property owners/hosts of the major cities must have their properties inspected each year. The inspection must be carried out by a Gas Safe Registered engineer who will provide the landlord with a safety certificate. Your certificate must be displayed for short lets of less than 28 occupied nights per year, and a copy supplied to tenants for periods longer than that.
3.Electricity
All wiring and appliances must be safe to use by all residents. Your electrical appliances and general powers should also be regularly PAT tested.
4.Holding the correct permission
You may need permission from your mortgage provider, landlord or the freeholder of the property if you’re planning to offer short-term rents. Any change of usage may invalidate your insurance policy, and also the local authorities may have unique specific local regulations with which you must comply. Research all areas thoroughly. You wouldn’t want to miss any small detail that could turn out to be a costly mistake.
5.Paying the correct taxes
The profit from your short-term tenancy business is liable for income tax. Make sure you understand the HMRC rules. You must be confident that you’re paying the correct amount, and not breaking the law regarding any additional income. Failing to pay the correct amount of income tax can result in heavy fines and backdated taxes.
Why choose UpperKey to manage your short-term rentals?
Navigating London’s short-let market today can be both profitable and complex. Adhering to the 90-day limit, obtaining planning permission when necessary, and balancing guests’ needs with community expectations can take significant time and effort. By working with a professional property management service like UpperKey, you can enjoy a streamlined rental experience without tangling yourself in administrative, logistical, or legal tasks. From guaranteeing rent and managing mid- or long-term transitions to handling every check-in, cleaning, and maintenance need, UpperKey offers a worry-free way to unlock your property’s full earning potential.
If you’re looking to capitalize on London’s vibrant short-term and mid-term rental scene, let the experts guide you. Start by contacting UpperKey to learn how they can tailor a rental strategy that fits your property, meets local regulations, and keeps your revenue flowing all year round.