Back in December 2016, a 90-days lettings limit was introduced in London by Airbnb to help with regulation of the sharing economy. The move was appreciated by locals, and today, the booking platform will automatically cap Airbnb bookings to 90 days per year for any properties that have not obtained a planning permit for short-letting through their local borough council.
What is the Airbnb 90-Day Rule?
The 90-Day Rule in London was introduced to help regulate the sharing economy and was well-received by locals. Today, Airbnb automatically limits bookings to 90 days per year for properties without a planning permit from the local council where the property is located.
If you cannot provide proof of the necessary paperwork for short-term letting, Airbnb will enforce this cap, restricting your property to a maximum of 90 occupied nights per calendar year.
Why Is There a Limit?
The 90-day rule in London was introduced to regulate the impact of short-term rentals on the housing market. Before this regulation, property owners were required to obtain planning permission to convert long-term rentals into short-term lets. Recognizing the global shift in travel and the economic benefits of home-sharing, the Deregulation Act 2015 allowed homeowners to rent out their properties for up to 90 days per calendar year without needing planning consent.
Currently, this rule applies exclusively to properties in Greater London. Property owners who exceed the 90-day limit without the necessary permissions risk fines of up to £20,000. While there have been discussions about extending similar regulations to other UK cities, no such measures have been implemented as of now.
What Does the Limit Apply To?
The 90 day rule Airbnb London applies to ‘whole property’ listings in the Greater London area, however, it also applies if you are leasing out one room in a property. If you want to extend beyond ninety days for short-term lets, then you will need to apply for a change in the planning permission to include short-term or holiday lets.
Once you have obtained this permission from the local council, you will then need to send proof of it to Airbnb, which will allow your property to be booked for more than the ninety-day limit on the platform.
Advantages and Limitations of London’s 90-Day Rule
Pros:
Simplifies Compliance: Allows property owners to let their homes for up to 90 nights per year without needing planning permission, streamlining the process for short-term rentals.
Supports Local Communities: Reduces frequent turnover in neighborhoods, helping maintain a sense of stability and community for permanent residents.
Encourages Responsible Tourism: Strikes a balance between short-term letting and the needs of local housing markets, benefiting both hosts and residents.
Cons:
Limits Revenue Potential: Hosts with high-demand properties face a cap on potential earnings, especially during peak travel seasons.
Restricts Flexibility: Homeowners who wish to rent out their properties more frequently must either switch to long-term rentals or apply for planning permission, which is rarely granted.
Risk of Penalties: Hosts exceeding the 90-day limit risk fines, potential removal of their listings from Airbnb, and other platform penalties.
How to Comply With the Regulation
If you have an Airbnb in London, then you may be wondering how to get around Airbnb 90 day rule. The truth is that the Airbnb 90 day rule is a legal requirement, so if you want to let your Airbnb property for more than the ninety day limit then you will need to apply for planning permission to do so from your local council. There are a few options.
The first option is to rent out your Airbnb as a short-term let on the platform and change it to a medium- or long-term rental property once you have reached the 90-day limit. Airbnb will not take your listing down if you change it to a rental for 90+ days, and you will also be fully compliant with the regulations.
However, on the downside, this option can make it harder for you to find guests as not everybody visiting London will want to book a stay of more than ninety days on the site. However, there are more appropriate sites that you may want to switch to using to find longer-term guests once you have reached the ninety day limit.
To understand how Airbnb enforces this rule, consult their FAQs article.
How to Get Planning Permission for More Than 90 Days?
If you want to short-term let your property in London for more than ninety days while ensuring that you are compliant with local rules and regulations, then you will need to apply to the local council for planning permission. It is down to each individual council to decide whether or not this permission will be granted.
It is worth bearing in mind that few planning applications for short-term lets are accepted in London, so it can be difficult to determine how likely you will be to get your application accepted. In Tower Hamlets, for example, every application for a short-term let since 2014 has been denied due to a shortage of residential accommodation in the area that would be affected further by an increase in short-term lets.
Applying for planning permission can be quite a lengthy process for landlords, and councils are often not very forthcoming with information to help you through the process and make it easier.
Can You Get Around the 90-Day Rule?
The 90-day rule in London permits homeowners to rent out their entire property for short-term stays totaling up to 90 nights within a calendar year (January 1 to December 31) without requiring planning permission. Once this limit is reached, further short-term rentals are not allowed until the next calendar year begins.
It's important to note that this regulation applies across all short-term rental platforms, not just Airbnb. Therefore, if a property has already been rented for 90 days on any platform, it cannot be legally let out on Airbnb or others for the remainder of the year.
To continue renting out the property on a short-term basis beyond the 90-day limit, homeowners must obtain planning permission from their local council. However, councils like Camden have policies that resist converting permanent housing into short-term or holiday lets, making such permissions challenging to secure.
Alternatively, properties can be let out on a long-term basis (over 90 consecutive nights) for the rest of the calendar year without requiring additional permissions. This approach allows homeowners to maximize occupancy while adhering to local regulations.
What Are the Consequences of Breaking the 90-Day Rule?
Hosts who rent out their property on Airbnb for more than 90 days in a calendar year risk facing serious penalties. The specific consequences depend on the local authority but can include significant fines. In some cases, hosts may even be required to repay income earned from bookings that exceeded the 90-day limit.
Additionally, breaching the 90-day rule could lead to the property being removed from Airbnb altogether. For hosts who rely on Airbnb as their primary source of income, this could result in major financial setbacks.
How Can Hosts Comply With the 90-Day Rule?
To stay compliant with the 90-day rule, hosts should keep a close track of how many days their property has been rented out. This can be done using Airbnb’s built-in calendar function, which automatically blocks bookings once the limit is reached. Hosts can access this feature through their Airbnb account.
It’s also essential to stay informed about local regulations. Some councils may require additional steps, like registering the property or obtaining a permit before hosting on Airbnb.
Transparency with guests is equally important. Clearly state the available dates on your Airbnb listing and ensure open communication with guests about booking availability. This helps avoid exceeding the limit while maintaining trust with your guests.
Are There Any Exemptions to the 90-Day Rule?
Certain properties may qualify for exemptions to the 90-day rule, depending on local authority guidelines. These exemptions often apply to properties let out for specific purposes, such as business or professional use.
To determine if your property qualifies for an exemption, it’s essential to check the specific regulations in your area. Local rules can vary, so understanding them is key to ensuring compliance.
Does Airbnb’s 90-Day Rule Apply Outside London?
Currently, the 90-day rule applies only to the Greater London area. This rule is set up by local authorities to reduce the impact of short-term rentals on housing and local communities. It stops property owners from renting out their whole home or apartment for over 90 days in a year without getting planning permission. However, this rule does not affect shared spaces or individual rooms in a property.
Although the rule only applies to London now, people have talked about expanding these kinds of rules to other big cities in the UK. These steps aim to find a way to keep long-term housing for residents and let homeowners gain from short-term rental services like Airbnb.
In London, property owners who break the 90-day rule can face heavy fines, up to £20,000. This shows why it is important to know and follow local rental rules. Staying informed and following the rules is key for property owners in London and maybe in other cities later. This helps them avoid legal and money problems.
Short Let Management Companies
You may want to consider working with a short-let management company like UpperKey. However, even if you do decide to take this route, it’s important to bear in mind that many short-term let management companies do not state that they offer this tactic as a part of their service, and many promise high occupancy rates through short-term lets. Bear in mind that as the landlord, it is your responsibility rather than that of the property management company to ensure that your property meets regulations.
The one exception to this would be a guaranteed rental scheme, in which case the property management company becomes a third party ‘tenant’ and takes all responsibility for regulations while making rental payments to you, the landlord, regardless of if the property is occupied. However, these schemes are typically for long-term rentals rather than short-term lets.
Working With a Property Manager
Most reputable short-term property management companies like UpperKey will require you to confirm that you have permission to short-term let, passing the liability on to you if it is found that the property does not have adequate permission. Most will not encourage you to break the law, but it is worth noting that some lack clarity in terms of these regulations and where you stand as a client.
Before hiring a short-term let management company, it is a good idea to speak to them in depth about how they work with the 90 day rule. This is something that short-term property managers should take seriously, so be wary if a property manager appears to brush it off.
