Understanding London's Short-Term Rental Regulations

Last reviewed: 27 July 2026. This is a complete rewrite.

The short version

• The 90-night rule is real, and it has two conditions, not one. Most guides mention the nights and omit the council tax requirement.
• It comes from Section 25 of the Greater London Council (General Powers) Act 1973, as amended by Section 44 of the Deregulation Act 2015. It is frequently misattributed.
• The cap attaches to the property, not to you. If two operators let the same flat in one year, both periods count toward the same 90.
• The counter resets on 1 January.
• Beyond 90 nights you need planning permission for a material change of use. In central London, approval is unlikely.
• Some boroughs have Article 4 directions, where permission may be needed regardless of nights.
• Failing to comply with an enforcement notice is an offence carrying an unlimited fine.
• An England-wide registration scheme and a new C5 use class are coming, but the secondary legislation has not been enacted.
• The furnished holiday lettings tax regime was abolished from April 2025.

What the law actually says

Precision matters here because this rule is misstated constantly.

Under Section 25 of the Greater London Council (General Powers) Act 1973, using residential premises in Greater London as "temporary sleeping accommodation" is a material change of use requiring planning permission.

"Temporary sleeping accommodation" means sleeping accommodation occupied by the same person for fewer than 90 consecutive nights, provided for consideration arising by way of trade for money or money's worth, or by reason of the occupant's employment, whether or not a landlord and tenant relationship is created.

Section 44 of the Deregulation Act 2015 added an exception. The use does not count as a change of use if both of these are true:

1. The total number of nights the premises is used as temporary sleeping accommodation in the same calendar year does not exceed 90, and
2. At least one of the persons providing the accommodation is liable to pay council tax at those premises.

If either condition fails, you are making a material change of use and you need planning permission.

That second condition is the one guides drop. It is not optional. If nobody providing the accommodation is liable for council tax at the property, the exception does not apply even if you let for a single night.

Sources: Deregulation Act 2015, Section 44 (legislation.gov.uk); City of London, Short term letting; Royal Borough of Kensington and Chelsea, Short term letting (PDF)

At a glance

Question	Short answer
Night cap	90 nights per calendar year
Second condition	Council tax liability at the premises
Where does it apply?	All Greater London boroughs and the City of London
Counter resets	1 January
Does it follow the property or the host?	The property
Beyond 90 nights	Planning permission for change of use
Are hosted stays caught?	Letting a room while you live there is treated differently
Is there a register?	Not yet. Legislation pending
Penalty for ignoring an enforcement notice	Unlimited fine

Three things people get wrong

1. The cap follows the property. If you buy or rent a flat that has already been let for 60 nights this calendar year, you have 30 left. Ask before you commit. Two different operators letting the same property in the same year share one allowance.

2. Platform blocking is not the law. Airbnb counts bookings on its own platform and blocks further reservations at 90 nights unless you evidence planning permission. That is helpful, but it is not your compliance system. If you let across multiple platforms, or take direct bookings, the platform's count will understate your total and the legal responsibility remains yours.

3. Hosted lettings are different. Letting a room in your home while you live there does not engage the cap in the same way as letting an entire property as temporary sleeping accommodation. Confirm your specific arrangement with your borough.

Going beyond 90 nights

If you want to exceed the cap, you apply to your borough for planning permission for change of use, from residential (Use Class C3) to temporary sleeping accommodation.

Realistically, in central London this is difficult. Westminster, Camden and Kensington and Chelsea refuse the large majority of such applications, and councils are considerably more likely to issue an enforcement notice than to grant retrospective consent. Reporting suggests allowing eight to thirteen weeks for a decision, and longer is common.

Outer boroughs are generally more pragmatic, but the outcome remains a planning judgment, not an entitlement.

Article 4 directions

Some boroughs have made Article 4 directions removing permitted development rights in specified areas. Where one applies, planning permission can be required regardless of the number of nights the property is let.

Article 4 areas are defined at a local level and change. Check your borough's own planning pages for your specific address rather than relying on a general London answer.

Enforcement

Boroughs monitor listings, and several use third-party data services to identify breaches. Westminster, Camden and Tower Hamlets are consistently described as active enforcers; others are more reactive to complaints.

The enforcement route runs through planning. Exceeding 90 nights without permission risks an enforcement notice requiring the use to stop. Failing to comply with an enforcement notice is an offence under Section 179 of the Town and Country Planning Act 1990 and carries an unlimited fine.

Boroughs also enforce separately on waste, noise and statutory nuisance.

The leasehold layer

This catches people who assumed planning was the only issue.

Most London flats are leasehold, and a large proportion of long leases prohibit short-term letting outright. That restriction operates independently of planning law. You can be entirely correct on your 90 nights and still be in breach of your lease, which is a matter between you and your freeholder.

Standard residential mortgage conditions commonly restrict it too, and buildings insurance may be affected.

Read your lease. Then read your mortgage conditions.

What is coming

Two changes have been announced and neither is yet in force.

An England-wide registration scheme. Announced in February 2024 under powers in the Levelling Up and Regeneration Act 2023. The government indicated that homeowners would still be able to let their own main or sole home for up to 90 nights a year without planning permission, and said it was considering how to avoid disproportionate regulation of infrequent letting. The scheme was targeted for 2026, but the secondary legislation has not been enacted.

A new Use Class C5 for short-term lets. Consulted on in 2023. Existing short-term let properties would be automatically classified as C5, with new permitted development rights allowing conversion between C3 and C5 without an application, and local authorities able to remove that right via Article 4 directions in areas under pressure. The statutory instrument has not been laid.

Watch GOV.UK rather than any secondary source for commencement.

Sources: GOV.UK, Short-term lets rules to protect communities and keep homes available and Introduction of a use class for short term lets and associated permitted development rights

Tax: a significant change in 2025

The furnished holiday lettings (FHL) regime was abolished from April 2025. This removed a set of tax advantages that short-term let owners had relied on for years, including more generous treatment of finance costs, capital allowances and certain capital gains reliefs.

If your financial model was built on FHL treatment, it needs rebuilding. This is the single largest tax change affecting UK short-term lets in a decade and a great many guides still describe the old position.

Also relevant:

• Business rates may apply where letting thresholds are met, rather than council tax
• Council tax premiums on second homes can reach substantial levels
• Rental income remains taxable and must be declared

Take advice from a UK accountant. Do not rely on any pre-2025 guidance about FHL.

Safety obligations

Short-term letting brings safety duties that do not depend on the 90-night question, including fire risk assessment, working smoke alarms and carbon monoxide alarms where required, annual gas safety checks, periodic electrical inspection, and fire-safe furnishings.

Treat these as non-negotiable and current. We would also note that at least one prominent guide published, then retracted, claims about platform-mandated fire certification requirements, which is a useful reminder to verify safety claims against primary sources.

A practical checklist

1. Confirm someone providing the accommodation is liable for council tax at the property
2. Establish how many nights the property has already been let this calendar year
3. Check whether your borough has an Article 4 direction covering your address
4. Read your lease, then your mortgage conditions, then your insurance
5. Track nights across all platforms and direct bookings, not just Airbnb's count
6. If you need more than 90 nights, speak to your borough's planning department early
7. Rebuild any financial model that assumed FHL tax treatment
8. Confirm your fire, gas and electrical safety obligations
9. Watch GOV.UK for the registration scheme and the C5 use class

Verified official sources

• Deregulation Act 2015, Section 44 (legislation.gov.uk)
• City of London, Short term letting
• Royal Borough of Kensington and Chelsea, Short term letting (PDF)
• GOV.UK, Short-term lets rules to protect communities
• GOV.UK, Use class for short term lets consultation

Named, not linked

• Greater London Council (General Powers) Act 1973, Section 25
• Town and Country Planning Act 1990, including Section 179 on enforcement notices
• Levelling Up and Regeneration Act 2023, the basis for the registration scheme
• Your own borough's planning pages, for Article 4 directions and change of use applications
• HMRC guidance on the abolition of the furnished holiday lettings regime
• Your lease, mortgage conditions and buildings insurance

Important disclaimer

This article is not legal, tax or financial advice. It is general information written for a non-specialist reader, by a key management company rather than a law firm.

The 90-night rule is widely misstated, including its statutory source and its second condition, and we would encourage you to read Section 44 yourself rather than trusting any summary. Article 4 directions vary by borough and by address. The England-wide registration scheme and the C5 use class are announced but not enacted. The abolition of the FHL regime from April 2025 invalidates a great deal of older tax guidance. Your lease can prohibit the activity regardless of planning.

Verify with your borough council, GOV.UK and legislation.gov.uk before acting. For anything involving planning permission, a lease, or tax structuring, engage a solicitor and an accountant.

If you spot an error, an omission, or something that needs updating, please tell us and we will fix it.