Short letting in London is legal — but it is subject to specific rules that have become progressively more detailed since 2015, and 2026 has brought meaningful new obligations for hosts. The most well-known short-let restriction in the UK is the 90-day rule that applies exclusively to Greater London. Under Section 44 of the Deregulation Act 2015, residential properties in London can be let on a short-term basis for a maximum of 90 nights per calendar year without requiring planning permission for a change of use.
Understanding what the 90-day rule actually means, what the new 2025 and 2026 requirements add, and what the consequences of non-compliance are is essential for anyone considering short letting a London property — whether as a regular host or as a homeowner letting while travelling.
The 90-Day Rule: What It Actually Means
The London 90-day rule limits short-term letting of residential properties to 90 nights per calendar year without requiring planning permission. This applies to all stays under 90 consecutive nights where the property isn’t the guest’s main residence. Introduced through the Deregulation Act 2015, this rule covers the entirety of Greater London — all 32 boroughs plus the City of London.
Several important clarifications about how the rule operates:
The 90 nights applies across all platforms combined. This 90-night limit applies per property, not per platform. If you list the same property on Airbnb, Booking.com, and Vrbo, the total nights across all platforms combined must not exceed 90 in any calendar year.
It covers entire property lets, not room lets. Renting a spare room in your primary residence while you are also living there is not covered by the 90-day rule — this falls under the Rent a Room Scheme and different rules apply. The 90-day rule applies to entire property short lets where you are not present.
The calendar year resets on 1 January. Nights count from 1 January to 31 December each year. A host who reached 90 nights on 15 October can resume lettings from 1 January the following year.
It applies to entire homes let for less than 90 consecutive nights. A single booking of 90 or more consecutive nights to the same guest is a longer tenancy rather than a short let and falls outside the Deregulation Act definition.
The New National Registration Scheme (2025/2026)
The regulatory landscape shifted significantly in 2025. The Levelling Up and Regeneration Act 2023 gave the government powers to introduce a mandatory registration scheme for short-term lets in England. The scheme was launched in 2025. By 2026, anyone offering a property as a short-term let must register with their local authority and obtain a registration number.
Registration requirements: Hosts must register each property separately. Registration involves confirming the property’s address, the type of accommodation, the owner’s identity, and compliance with basic safety standards — gas safety certificates, electrical installation condition reports, smoke and carbon monoxide alarm requirements.
Operating a short-term let in England without a valid registration number is now a compliance failure with potential enforcement consequences. For London hosts who have been operating under the 90-day rule without formal registration, the registration requirement is the most urgent new obligation.
The New Planning Use Class (C5)
Properties used as short-term lets for more than 90 days per year now fall within C5 rather than C3 (dwellinghouses). Planning permission is required to change from C3 to C5. Local authorities can refuse permission or attach conditions. Local authorities can adopt Article 4 Directions to remove the permitted development right to change from C3 to C5 without permission. Several councils in areas with acute housing pressures have already done so.
For hosts operating within the 90-day cap, the C3 use class remains unchanged and no planning permission is required. For hosts who wish to let for more than 90 nights per year, the C5 use class requires planning permission — and obtaining that permission is not guaranteed in London boroughs where short-term letting has been identified as reducing housing supply.
What Exceeding 90 Days Means
Exceeding the 90-night cap or operating without required planning permission can lead to enforcement action including fines typically up to £20,000 and forced cessation of listings. Council officers may issue enforcement notices demanding the property be taken off the short-let market. Platforms like Airbnb may remove or suspend listings when limits are hit or permissions absent.
Some London boroughs have been more aggressive than others in enforcing the 90-day cap. Some London boroughs have sought Article 4 Directions to remove the Deregulation Act exemption in specific areas. Checking your specific borough’s planning policy before operating is advisable — the rules are consistent across Greater London at the statutory level but enforcement priority and local restrictions vary.
The Leasehold Issue: A Check Most Hosts Miss
Check your lease: if your property is leasehold, confirm there are no restrictions on short-term lets (stays under 90 days). Some leases explicitly prohibit this.
The majority of London flats are leasehold. The 90-day rule gives planning permission for short letting — it does not override the terms of a lease. A leasehold flat whose lease includes a clause restricting occupancy to a single household or prohibiting subletting cannot be legally short let regardless of what the planning rules permit. The freeholder can take legal action against a leaseholder who breaches this clause.
Before beginning any short letting programme in a leasehold London property, read the specific lease terms. If the lease is ambiguous, seek a solicitor’s opinion — the cost of this advice is trivial compared to the consequences of a freeholder taking enforcement action.
Read also- what proof of income for renting in London
The Tax Changes That Affect Short Letting in 2026
The Furnished Holiday Lettings tax regime was abolished from April 2025. London hosts have lost unrestricted mortgage interest deduction, capital allowances, and Business Asset Disposal Relief. Mortgage interest is now restricted to a 20% basic rate tax credit.
This is a significant change for hosts who were using the FHL regime for its tax advantages. Short-term let income is now taxed on the same basis as long-term rental income — rental income minus allowable expenses, with mortgage interest restricted to a 20% credit for higher and additional rate taxpayers. For hosts with mortgages who previously benefited from full mortgage interest deduction under FHL, the tax position has worsened materially.
The 100% council tax premium on second homes is being rolled out by councils across England from April 2025. If your London property does not qualify for business rates (140/70-day threshold), you may face double council tax.
For GOV.UK guidance on the short-term let registration scheme, check: GOV.UK — short-term let registration
What Short Letting Legally Requires in 2026
For a London short-term let to be fully compliant in 2026:
- Stay within 90 nights per calendar year across all platforms
- Register the property with your local authority under the national registration scheme and display the registration number on all listings
- Meet safety standards: valid gas safety certificate, electrical installation condition report, smoke and carbon monoxide alarms installed to the required standard
- Check and comply with your lease terms if the property is leasehold
- Obtain planning permission if you intend to exceed 90 nights (C5 use class)
- Carry appropriate insurance: standard home insurance does not cover paying guests — a specialist short-let or host insurance policy is required
- Declare income to HMRC — short-let income above the trading allowance (£1,000 per year) is taxable
For London planning guidance on the 90-day rule, check: GOV.UK — short-term letting Deregulation Act
Conclusion
Short letting in London is legal within the 90-day rule, subject to 2026’s new mandatory registration requirement, compliance with safety standards, lease terms for leasehold properties, and the changed tax treatment following the abolition of the Furnished Holiday Lettings regime in April 2025. The 90 nights applies across all platforms combined, per calendar year. Exceeding the cap without planning permission carries fines of up to £20,000. The most commonly overlooked compliance risk is the lease — always check it before beginning a short letting programme in any London leasehold flat.
Frequently Asked Questions
Is Airbnb legal in London?
Yes — Airbnb and equivalent short-term letting platforms are legal in London under the 90-day rule, which permits entire home short lets for up to 90 nights per calendar year without planning permission. From 2025/2026, hosts must also register their property with the local authority and comply with safety standards. The 90 nights counts across all platforms combined, not per platform.
What happens if I exceed 90 nights of short letting in London?
Exceeding the 90-night cap without planning permission can result in enforcement action by the local council, fines of up to £20,000, and enforcement notices requiring cessation of short-let listings. Platforms including Airbnb may suspend listings when limits are reached. Planning permission for the C5 use class is required to let for more than 90 nights per year.
Can I short let my leasehold London flat?
Only if your lease permits it. Many London leasehold flat leases include clauses restricting subletting or requiring single-household occupation. The 90-day rule provides planning permission — it does not override lease terms. Read your lease carefully and seek a solicitor’s opinion if the terms are ambiguous before beginning any short letting.
What changed for short letting in London in 2025 and 2026?
The most significant changes are: the national mandatory registration scheme launched in 2025 requiring hosts to register each property and obtain a registration number; the abolition of the Furnished Holiday Lettings tax regime in April 2025 removing previous tax advantages; and the introduction of the C5 planning use class for properties let for more than 90 nights. The 90-day cap itself remains unchanged.
