Short-term letting — renting a property through Airbnb, VRBO, Booking.com, or directly for periods of less than 90 days — has been largely unregulated compared to long-term private renting. That changed with the Levelling-up and Regeneration Act 2023, which gave local authorities in England new powers to require planning permission for short-term lets and created the framework for a mandatory registration scheme.
In London, the 90-day rule introduced by the Deregulation Act 2015 already limits whole-property short-term lets to 90 nights per calendar year without planning permission. From 2026, all short-term let hosts in England must register with the government's short-term let register before listing their property.
The mandatory short-term let registration scheme (England)
Under powers in the Levelling-up and Regeneration Act 2023, a mandatory registration scheme for short-term lets in England came into operation. Key requirements:
- All hosts letting a property for short-term stays must register the property with the national register before listing
- Registration requires basic safety compliance: smoke alarms, CO alarms, and gas safety certification
- Platforms (Airbnb, VRBO, etc.) are required to check registration numbers before listing properties
- Unregistered properties: £2,500 fixed penalty notice (rising to £7,500 for repeated breaches)
- Local authorities can access the register to enforce planning and licensing compliance
Planning permission for short-term lets
From May 2024, planning permission is required in England to use a dwelling as a short-term let if it is the owner's second home or investment property (not their primary residence):
- A new use class — Class C5 (short-term lets) — was created by the Town and Country Planning (Use Classes) Order amendment
- Existing long-term rental properties (Class C3) converting to short-term lets require planning permission to change use to Class C5
- Primary residences let for short periods while the owner is away do not require planning permission — the property remains in Class C3
- Local authorities can designate areas where permitted development rights to switch between C3 and C5 do not apply
- Operating a short-term let without the required planning permission is an enforcement risk: planning enforcement notice, stop notice, or prosecution
The 90-day rule in London
London has had its own short-term let restrictions since the Deregulation Act 2015:
- Whole-property short-term lets in London (Greater London area) are limited to 90 nights per calendar year without planning permission
- This applies to all 32 London boroughs plus the City of London
- Airbnb and other platforms automatically stop listings after 90 nights (for hosts who have not verified they have planning permission for unlimited short-term letting)
- Hosts who exceed the 90-night limit without planning permission face a £20,000 fine from their London borough
- Room-by-room lettings where the host remains resident are not subject to the 90-day cap
Council tax and business rates for short-term lets
The tax treatment of short-term lets depends on the number of days the property is available and actually let:
- 140 days available / 70 days let rule: If a property is available for short-term letting for 140+ days per year and actually let for 70+ days, it moves from council tax to business rates
- Small Business Rate Relief: Properties with a rateable value under £12,000 qualify for 100% Small Business Rate Relief if the owner has no other business properties — effectively zero rates
- Council tax: Properties below the 70-day letting threshold remain liable for council tax — the second home premium (up to 100% additional council tax) applies in many areas
- Furnished Holiday Let (FHL) status: From April 2025, the FHL regime was abolished. Short-term let income is now taxed as property income, not trading income — mortgage interest relief is restricted to basic rate, and capital gains tax reliefs (Business Asset Disposal Relief, roll-over relief) no longer apply
Income tax on short-term let income
Post-April 2025, all short-term let income in the UK is taxed as property rental income under ITTOIA 2005:
- Income tax is charged on profit (rental income minus allowable expenses)
- Allowable expenses: letting agent fees, cleaning, maintenance, insurance, utilities, broadband, platform fees (Airbnb service charges), and a proportion of mortgage interest (basic rate relief only for residential properties)
- Flat rate expense method: hosts can claim a £1,000 property income allowance instead of actual expenses if income is below that threshold
- For income above the allowance, actual expenses must be claimed and a Self Assessment return filed
- VAT: short-term letting is exempt from VAT unless the host is also providing hotel-style services (breakfast, room cleaning, concierge)
Safety obligations for short-term let hosts
Short-term let hosts have safety obligations that are broadly equivalent to those of residential landlords:
- Gas safety: Annual gas safety check (CP12) by a Gas Safe registered engineer — required for registration and expected by most platforms
- Electrical safety: EICR or equivalent evidence of electrical safety
- Smoke alarms: Working smoke alarm on every storey
- Carbon monoxide alarm: In every room with a solid fuel combustion appliance (wood burner, open fire, gas boiler from 2022)
- Fire safety: Fire risk assessment recommended for properties sleeping 6+ guests; fire extinguisher and blanket in kitchen recommended
- Legionella: Risk assessment required if the property is let frequently and the water system has long stagnant periods
Mortgage restrictions — permission to let
Most residential mortgage lenders prohibit short-term letting without express consent:
- Standard residential mortgages (owner-occupier) prohibit any commercial letting including Airbnb without lender consent
- Buy-to-let mortgages typically allow long-term AST/PAT letting but prohibit short-term letting of less than 6 months without a specific short-term let mortgage product
- Dedicated short-term let (holiday let) mortgages are available from specialist lenders — these are assessed on projected rental income rather than the borrower's personal income
- Letting a mortgaged property on Airbnb without lender consent is a breach of the mortgage terms — the lender can call in the loan
- Check your mortgage terms or contact your lender before listing
Frequently asked questions
Do I need planning permission to let my property on Airbnb in 2026?+
It depends. In England, if the property is your primary residence and you let it occasionally while you're away, no planning permission is needed. If it is a second home or investment property let as a short-term let (under 90 consecutive nights), it requires planning permission to operate as a Class C5 short-term let (unless your local authority's permitted development rights allow the switch from C3). In London, whole-property short-term lets are capped at 90 nights per year without planning permission.
Is the short-term let registration scheme mandatory in 2026?+
Yes — the government's mandatory short-term let registration scheme requires all English short-term let hosts to register their property before listing. Platforms are required to check registration numbers. Unregistered hosts face fixed penalty notices of £2,500–£7,500. Check gov.uk for the current registration portal.
What happened to Furnished Holiday Let tax reliefs?+
The Furnished Holiday Let (FHL) tax regime was abolished from April 2025. Short-term let income is now taxed as ordinary property income. The main practical losses are: (1) capital gains tax reliefs (Business Asset Disposal Relief, roll-over relief) no longer apply; (2) mortgage interest cannot be deducted in full — basic rate relief only; (3) pension contribution eligibility based on FHL profits no longer applies.
Can I let my property on Airbnb if I have a buy-to-let mortgage?+
Most buy-to-let mortgages require the property to be let on a standard assured tenancy of 6 months or more, and prohibit short-term letting without specific lender consent. Letting on Airbnb without consent breaches the mortgage terms. Specialist short-term let mortgages are available — contact a mortgage broker if you want to switch to short-term letting.
Does the 90-day rule apply outside London?+
The statutory 90-day cap (from the Deregulation Act 2015) only applies in Greater London. Outside London, there is no statutory nightly cap — but the new planning use class regime (Class C5) and local authority designation powers allow councils to impose their own restrictions. Some popular tourist areas are expected to use their designation powers to restrict short-term lets.