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London’s Short Term Letting Guidance

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Short term letting rules apply to all of London’s residential property stock. The rules, which came into force in 2017, state that a property cannot be rented on a short term basis for more than 90 nights per calendar year (January 1st to December 31st).

In our experience, these types of short term lets are typically arranged via rental websites, apps, and platforms such as Airbnb, Booking.com, and VRBO (formerly branded as HomeAway).

Why the 90 Night Rule?

The 2017 regulations were introduced to help the government preserve housing availability for long term residents.

A property can be rented on a short term basis for up to 90 nights per calendar year (from January 1st to December 31st) without requiring planning consent.

If a property exceeds the 90 night limit without the appropriate planning permission, the local authority may take enforcement action, which could include issuing a fine of up to £20,000.

What to Do Before You Let Your Property

For property owners, it’s not as simple as taking a few photos and listing the property on a booking platform.

By entering the short term rental market, you will be required to obtain landlord insurance and inform both your mortgage provider and your home insurer.

In addition, you have a legal duty to ensure the property meets current safety standards for guests. These include but are not limited to health and safety compliance, Gas Safe certification, and electrical certification.

Property owners should also be aware that they remain responsible for broader obligations such as waste disposal, maintenance and upkeep, cleaning, utility bills (gas and electricity), internet costs, and the TV licence. Rental income must also be declared to HMRC.

As of the date of publication of this article, the Mayor of London, Sadiq Khan, has called for a new licensing system to be introduced for short term rentals. If implemented, this would require all of London’s 80,000 short term rental properties to apply for a licence to operate legally.

With landlords already facing mounting pressure from the forthcoming Renters’ Rights Bill, rising insurance premiums, and increased mortgage rates, could the introduction of a licensing scheme be a step too far? Time will tell! We will keep you updated on developments in future articles and as news breaks.

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