Short-Term Lets Planning UK 2026 — Complete Landlord Guide to STL Planning and Licensing

LURA 2023 — England's new STL planning use class and Article 4 Directions

The Levelling Up and Regeneration Act 2023 provided the legislative framework for England to regulate STL planning. The key provisions are:

• New short-term let use class: The LURA 2023 enables the Government to create a distinct planning use class for short-term let accommodation — separate from the existing C3 (dwellinghouse) use class. Before this framework, an occasional holiday let of a residential property typically did not constitute a material change of use (and therefore did not require planning permission). The new use class establishes that regular STL activity is a distinct land use, enabling councils to control it through the planning system. The detailed implementation — including how many nights per year trigger the new use class — is set by secondary legislation and Government guidance
• Permitted development rights for STLs: The LURA 2023 framework includes permitted development rights (PD rights) allowing the change from the standard dwellinghouse use class (C3) to the new STL use class without a full planning application. These PD rights apply nationally as a default. This means landlords in most areas of England can operate an STL without obtaining planning permission, as long as the property falls within the scope of the PD rights (and is not in an Article 4 Direction area). The existing planning use of the property (C3 or otherwise) must be capable of benefiting from the PD right — planning history matters
• Article 4 Directions — councils removing PD rights in hotspot areas: The LURA 2023 also enables local planning authorities to make Article 4 Directions removing the PD rights for STLs in areas where they are experiencing adverse planning impacts — loss of affordable housing stock, residential character changes, anti-social behaviour from tourist accommodation. Where an Article 4 Direction is in force, landlords wishing to operate an STL must apply for full planning permission for a change of use from C3 to the STL use class. Planning permission may be refused, particularly in conservation areas, housing shortage zones, and areas with existing STL concentration. Councils in tourist destinations (Cornwall; Bath; Oxford; Lake District; South Downs) and cities with housing pressure (London; Bristol; Edinburgh via Scottish regime) are expected to make Article 4 Directions
• Mandatory national STL registration scheme for England: Separately from the planning use class, the Government has been implementing a mandatory national registration scheme for short-term let operators in England. The scheme requires all STL operators (whether or not planning permission is required) to register with a national database administered by MHCLG. Registration provides the Government and local authorities with data on STL activity — the number of properties, location, and operator details. Booking platforms and STL platforms are expected to only allow listed properties to be advertised once the scheme is operational. Registration does not replace planning permission requirements — both may apply in Article 4 Direction areas

London 90-night rule — Deregulation Act 2015 s.44

London has had its own STL rule since 2015, independent of the LURA 2023 framework. It is a key operational constraint for London landlords considering STL:

• The 90-night rule — how it works: Section 44 of the Deregulation Act 2015 inserted provisions into the Greater London Council (General Powers) Act 1973 allowing Greater London dwellings to be used for temporary sleeping accommodation for up to 90 nights per calendar year without requiring planning permission for a change of use. Above 90 nights per calendar year, the dwelling changes use from C3 (dwellinghouse) to sui generis — and planning permission for that change of use is required. The 90 nights can be a single booking or the cumulative total across multiple bookings and guests throughout the calendar year (1 January to 31 December)
• Breach of the 90-night rule — planning enforcement: Operating a London STL for more than 90 nights per year without planning permission is a breach of planning control. The London Borough can serve an enforcement notice requiring cessation of the STL use and change of use back to C3 dwellinghouse. Planning enforcement notices have a 4-year time limit for use class breaches. Booking platforms operating in London (Airbnb; Booking.com) have built-in 90-night caps into their platform for London properties to assist compliance — but hosts can circumvent these by booking through multiple platforms. Hosts exceeding 90 nights risk both planning enforcement and the platform removing their listing
• Exemptions from the 90-night rule: The 90-night rule applies only to Greater London. Properties used as STLs outside Greater London are governed by the LURA 2023 framework (England) or the Scottish STL licensing regime (Scotland). In London, the 90-night rule does not apply to commercial accommodation (hotels; serviced apartments purpose-built as C1 hotels; hostels) — it applies only to dwellinghouses (C3). Properties with planning permission for STL use (from a council that has granted planning permission for change of use from C3 to sui generis/STL use class) are exempt from the 90-night cap — they can be let for the full year. Planning permission for STL use in London is difficult to obtain in most residential areas
• The LURA 2023 and the 90-night rule interaction: The LURA 2023 national STL use class framework applies to England including London. However, the London 90-night rule continues to operate as a separate statutory constraint under the Deregulation Act 2015. In London, both the 90-night rule and any Article 4 Direction requirements (if a council removes the LURA 2023 PD rights) may apply simultaneously. The practical effect is that London STL operators face the most restrictive framework in England — the 90-night annual cap remains the primary operating constraint for London dwellinghouse STLs

Scotland mandatory STL licensing — Civic Government (Scotland) Act 1982

Scotland implemented mandatory STL licensing earlier and more comprehensively than England, under its own statutory framework:

• Mandatory STL licensing — all Scottish operators: The Civic Government (Scotland) Act 1982 was amended by the Licensing of Businesses, etc. (Scotland) Act 2022 to require all short-term let operators in Scotland to hold a licence issued by the relevant local council. The licensing requirement applies to any property used for STL purposes — not just Airbnb-style lets but any property let for commercial purposes for fewer than 31 consecutive days. Implementation was phased by council — Edinburgh City Council implemented mandatory licensing from October 2022; most other Scottish councils implemented by 2023-2024. From 1 October 2023, no new STL operator in Scotland can legally let without a licence
• Principal home exemption — up to 140 nights: The Scottish STL licensing scheme distinguishes between 'home sharing' (letting a room or the whole property while the operator is present or temporarily absent) and 'secondary letting' (letting a property that is not the operator's principal home). Principal home operators can apply for a home sharing or home letting licence; secondary letting operators must apply for a secondary letting licence. In Edinburgh specifically, a change of use planning permission is required for secondary letting (non-principal home STL) — principal home operators are exempt from this planning requirement but must still hold an STL licence. The 140-night threshold applies in some Edinburgh licensing contexts
• Scottish STL licence conditions and safety standards: Scottish STL licences require compliance with safety standards: gas safety certificate; electrical safety; carbon monoxide and smoke/heat alarm standards (interlinked smoke alarms — same requirements as Scottish HMO and PRS). Licence fees vary by council and property size. Licences are typically granted for periods of 1-3 years. Councils can impose conditions on licences — for example, limiting nights per year, requiring noise management plans, or restricting the number of guests. Operating without a licence in Scotland is a criminal offence — level 3 fine (currently £1,000) per offence under the Civic Government (Scotland) Act 1982
• STL and Scottish planning in non-Edinburgh areas: Outside Edinburgh, the planning position for STLs in Scotland is governed by the Scottish planning system. Where an STL represents a material change of use from residential (Use Class 9 — dwellinghouse) to commercial accommodation, planning permission may be required. The threshold for material change of use depends on the frequency, duration, and character of the STL activity. Planning authorities in tourist hotspot areas (Highland; Argyll and Bute; Loch Lomond and The Trossachs National Park; Cairngorms National Park) may apply more restrictive planning policies to STLs. Scottish landlords considering STL properties outside Edinburgh should check with the relevant planning authority before letting begins

STL regulation, FHL abolition, and planning for future lettings

The combination of FHL tax abolition, new STL planning regulation, and mandatory registration/licensing significantly changes the economics and compliance burden of STL operation:

• FHL abolition interaction — STL is now ordinary property income: The Finance (No.2) Act 2024 abolished the FHL tax regime from April 2025. STL properties that previously qualified as FHL are now taxed as ordinary property income — no BADR, no capital allowances on initial furnishings, no pension contribution offset, and Section 24 now applies (finance cost restriction). The combination of higher tax costs and increased regulatory compliance burden (licensing in Scotland; registration in England; potential planning permission in Article 4 Direction areas) materially changes the economics of STL operation compared with the pre-April 2025 position. Operators should model both the ongoing income tax position and any CGT implications before deciding whether to continue STL operation
• Key compliance steps for English STL operators: Landlords operating STLs in England should: (1) check whether the property is in an Article 4 Direction area — if so, planning permission for change of use from C3 to STL use class may be required before letting; (2) register on the national STL registration scheme when operational — registration will likely be required before properties can be advertised on major platforms; (3) ensure the property meets all relevant safety standards (gas safety; electrical safety; smoke and CO alarms); (4) in London, track cumulative STL nights carefully — 90-night cap applies per calendar year; (5) review mortgage consent — most residential mortgages prohibit STL use; BTL mortgages may also prohibit STL; specialist STL mortgages or holiday let mortgages are needed for compliant STL operation
• Key compliance steps for Scottish STL operators: Scottish STL operators must: (1) apply to the relevant local council for an STL licence before operating (new operators must be licensed; existing operators transitioning from FHL must apply if not already licensed); (2) determine whether the property is a principal home or secondary let — the licence type differs; (3) in Edinburgh, if the property is a secondary let (not principal home), obtain planning permission for change of use before applying for the STL licence; (4) comply with Scottish safety standards — interlinked smoke alarms; heat alarms; CO alarms; gas safety; electrical safety; (5) ensure Scottish Landlord Registration is maintained if the property is also let on residential terms; (6) note that FHL tax treatment (with its advantages) is abolished from April 2025 — Scottish STL income is now ordinary property income
• STL and mortgage compliance: Most standard residential mortgages and buy-to-let mortgages prohibit STL use (typically defined as lettings of less than 6 months or fewer than 90 consecutive days). Landlords operating STLs on properties with standard mortgages may be in breach of their mortgage terms — potentially triggering immediate repayment of the mortgage or enforcement. Specialist holiday let mortgages (offered by lenders including Hodge; Bath Building Society; Ipswich Building Society; Principality) permit STL use. Landlords considering STL should obtain a holiday let mortgage or specialist BTL product permitting STL, and check that their building insurance covers STL use (many standard policies do not). STL-specific insurance (e.g., host protection insurance) may be required in addition to buildings insurance

Frequently asked questions