LURA 2023 — England's new STL planning use class and Article 4 Directions
The Levelling Up and Regeneration Act 2023 created a new STL planning use class for England and enabled councils to make Article 4 Directions removing permitted development rights for STLs in hotspot areas.
- New short-term let use class: LURA 2023 enables creation of a distinct STL use class separate from C3 (dwellinghouse); regular STL activity is now a defined land use
- Permitted development rights: default PD rights allow change from C3 to STL use class without a planning application in most areas of England
- Article 4 Directions: councils in tourist hotspot or housing pressure areas can remove PD rights, requiring full planning permission for STL use — expected in Cornwall, Bath, Oxford, Lake District, London boroughs
- Mandatory STL registration scheme: national registration database for all English STL operators; platforms expected to require registration before listing properties
London 90-night rule — Deregulation Act 2015 s.44
Greater London dwellings can be used for STL for up to 90 nights per calendar year without planning permission. Above 90 nights, planning permission for change of use from C3 to sui generis is required.
- 90-night cap applies per calendar year (1 January to 31 December) — cumulative across all bookings and platforms
- Exceeding 90 nights: planning enforcement notice risk from the London Borough; planning enforcement notices have a 4-year time limit
- Booking platforms: Airbnb and Booking.com have built-in 90-night caps for London properties; hosts using multiple platforms can exceed this if not tracked carefully
- LURA 2023 interaction: London 90-night rule continues alongside the national STL use class framework — both may apply
Scotland mandatory STL licensing
Scotland requires all short-term let operators to hold a mandatory local council licence under the Civic Government (Scotland) Act 1982 as amended by the Licensing of Businesses, etc. (Scotland) Act 2022.
- Mandatory licensing: all Scottish STL operators must hold a licence from the relevant local council — operating without is a criminal offence (level 3 fine)
- Edinburgh: secondary letting (non-principal home) requires change of use planning permission AND an STL licence; principal home operators require an STL licence only
- Principal home exemption: home sharing and home letting licences available for principal home operators; up to 140 nights in some Edinburgh licensing contexts
- Safety standards: gas safety; EICR; interlinked smoke alarms; heat alarms; CO alarms — same as Scottish PRS and HMO standards
STL regulation, FHL abolition, and planning compliance
The combination of FHL tax abolition (April 2025) and new STL planning and licensing regulation significantly changes the economics and compliance burden of STL operation.
- FHL abolition (Finance (No.2) Act 2024): STL now taxed as ordinary property income — no BADR; no capital allowances on initial furnishings; Section 24 now applies
- Mortgage compliance: standard BTL and residential mortgages prohibit STL; holiday let mortgages (Hodge; Bath Building Society; Principality) permit STL
- Insurance: standard building insurance may not cover STL use; specialist STL or holiday let insurance required
- England key steps: check Article 4 Direction status; register on national scheme; track nights (London); confirm mortgage and insurance compliance