What are the rules on short-term and holiday letting?
A patchwork that has tightened substantially, and which operates at several levels simultaneously — so complying with one does not mean complying with the others.
The layers that apply:
Your lease or title. A leasehold flat frequently prohibits short lets, and a covenant restricting use to a private dwelling has been held to prohibit holiday letting even where subletting is otherwise allowed. This is the first thing to check and the one most often ignored.
Your mortgage, which typically prohibits letting without consent, and specifically prohibits short-term letting in many cases.
Planning. In London, the 90-night rule limits short letting of residential premises without planning permission. Scotland requires a licence for short-term lets, with a control area system allowing councils to require planning permission. Wales operates a registration and licensing framework. England has legislated for a registration scheme, with implementation staged.
Fire safety, where short-let accommodation requires a fire risk assessment under the relevant regime, and requirements are more demanding than for a private home.
Gas and electrical safety certification.
Insurance. Standard home insurance does not cover short-term letting, and a claim can be refused entirely.
Tax. Income is taxable; furnished holiday letting rules that gave favourable treatment have been abolished; and business rates may apply instead of council tax where a property meets availability and letting thresholds — which has been tightened specifically because of avoidance.
Licensing for selective or additional licensing schemes in some areas.
Why the rules tightened. Growth in short letting has been associated with reduced long-term rental supply, higher rents, nuisance in residential blocks, and hollowing of communities in tourist areas — which is why regulation has moved quickly and continues to.
What to do before letting: read the lease and the mortgage terms; check the local authority's specific position, since it varies by street in some cities; tell your insurer; arrange fire risk assessment and safety certification; and check the tax position for your circumstances.
Platforms increasingly enforce limits, including automatically capping nights in regulated areas.
General information, not legal or tax advice.