Short-term letting rules in the UK (including the London 90-day limit)

If you’re thinking about renting out your home as a short-term let, it’s important to make sure you don’t unwittingly fall foul of the law. For example, in London, you’ll need to abide by the ’90-day’ rule and in other parts of the country, it’s likely that you’ll need planning permission from your local authority.

We look at the rules in more detail to help you stay compliant while letting your home for short-term stays.

This content was factually correct when written but may not reflect current developments or information.

What is the 90-day rule for short-term lets?

The 90-day rule only applies to properties in Greater London that are rented out in their entirety. Under this rule, properties can only be let out on a short-term basis for a maximum of 90 days per calendar year (either in total or consecutive nights).

The rule was introduced to protect the long-term housing supply for people living and working in London, while also allowing Londoners to earn extra money by renting out their homes.

The rule is often called the Airbnb 90-day rule. Airbnb automatically closes bookings for any London property that reaches its 90-day limit (unless the owner can prove they have planning permission).

Do I need planning permission for a holiday let outside London?

The 90-day rule only applies to Greater London, but if you want to offer your home as a short-term let, you may need planning permission from your local council. It’s also worth noting that the government is planning to introduce a mandatory registration scheme for short-term lets in England.

In Scotland, the rules are different, and you’ll need a short-term let licence before you start renting out your property.

For more information, take a look at our guide to legal requirements for holiday lets.

How can landlords continue to let their property once they have exceeded the 90-day allowance?

If you’d like to make more of your London property and maximise income potential, there are options to consider:

Applying for planning permission

Applying for planning permission and a ‘change of use’ means you can rent out your property on a short-term basis for more than the 90 days. There’s no guarantee your council will give you permission, especially if they consider there to be a housing shortage in your area.

You can find out more and weigh up the pros and cons of holiday homes vs buy-to-lets in our in-depth guide.

Switching to mid-term or long-term lets

If you’d prefer to rent to a longer-term tenant, this could be an alternative option, although it may not match the income you earn from short-term lets. However, it has the potential to provide more consistent income year-round.

If your property stays empty in-between your short-term stays, you’ll need to keep track of the length of time it’s vacant. Most home insurance policies won’t cover homes that are empty for more than a certain number of consecutive days (typically 30 – 60, depending on the policy). Instead, you’ll need unoccupied home insurance.

Check your mortgage before renting out your property

Before you advertise your home for rent, it’s essential to check you’re meeting any mortgage and financial regulations. For example, most residential mortgage lenders will want to know if you’re planning to rent out your home (for short- or long-term lets). That’s because renting out a property may change your affordability profile, and having a tenant or guests living in the property alters the lender’s risk profile.

It’s highly likely you’ll need to switch to a buy-to-let mortgage. Residential mortgages are designed for homeowners living in the property, so your lender will need to be notified of any changes to this.

Insurance and short-term letting

The most appropriate insurance policy for your property will depend on how you choose to rent out your home, for example:

Standard home insurance

Standard home insurance covers you as an owner-occupier. If you decide to rent out your home for a few weeks here and there (such as when you’re away), your insurer may give you a temporary extension to your existing home insurance policy to cover short-stay lets.

However, it’s vital to speak to your insurer before you market your home for rent as they may object or choose to restrict the cover provided on your home insurance. Letting out your home without the right insurance also means you risk voiding your policy and claims not being paid.

Holiday let insurance

If you’re a landlord that doesn’t live in the property and you want to rent it out for weekend breaks or short stays up to 90 days, you’ll need holiday let insurance or Airbnb insurance. These policies cover the increased risks of short-term letting, but they don’t cover longer-term rentals which have an assured periodic tenancy in place. In this scenario, you’ll need landlord building insurance.

Serviced accommodation insurance

Serviced accommodation is a type of furnished property rented out with additional services provided, such as housekeeping, cleaning, or concierge support.

Serviced accommodation insurance is designed specifically for this type of rental agreement and typically includes:

Employers’ liability, which is a legal requirement if you employ anyone in relation to the property.

Business interruption, which covers loss of rent from confirmed bookings if your property cannot be rented for a reason covered by your policy.

Theft and malicious damage by guests.

Pet damage (typically an optional extra).

Policies with Alan Boswell Group have the flexibility to provide cover for both short-term lets and tenants on an APT within the same policy year.

Tailored insurance to meet your needs

However you choose to rent out your home, it’s important to protect it. Not having the right policy could mean a claim is rejected, leaving you to face the financial burden of repairs or other losses.

If you’d like to speak to an expert about the risks of renting out property.

Speak to us: 01603 216399