The 90-Day Short-Term Let Rule is a pivotal regulation for property investors operating in London. Introduced to balance the growing popularity of short-term rentals with the need to protect the city’s housing market, this rule has significant implications for landlords and investors. Understanding its nuances is crucial for compliance and strategic planning.

What Is the 90-Day Short-Term Let Rule?

The rule limits the number of nights a property can be rented out as a short-term let within a calendar year. Specifically, it allows properties to be let for up to 90 nights per calendar year without requiring planning permission. This regulation applies to the use of residential properties as temporary sleeping accommodation in Greater London.

The 90-Day Short-Term Let Rule is rooted in the Deregulation Act 2015, which amended the Greater London Council (General Powers) Act 1973. Section 44 of the Deregulation Act 2015 clarified that the use of residential property as temporary sleeping accommodation in Greater London does not constitute a material change of use requiring planning permission if:

  1. The aggregate number of nights during a calendar year for which the property is used as temporary sleeping accommodation is not greater than 90.
  2. The person providing the accommodation is liable for council tax in respect of the property.

These conditions ensure that short-term letting remains a supplementary activity rather than a primary use of residential properties.

Enforcement Mechanisms

Enforcement of the 90-Day Short-Term Let Rule is a collaborative effort between local councils and short-term rental platforms. Platforms like Airbnb have implemented automatic systems to block bookings once the 90-night threshold is reached. Hosts are notified when they approach this limit, and further bookings are prevented until the start of the next calendar year.

Local councils also monitor compliance through data-sharing agreements with these platforms. Failure to adhere to the rule can result in enforcement action, including fines and potential legal proceedings.

Implications for Property Investors

For property investors, the 90-Day Short-Term Let Rule necessitates strategic planning to maximize rental income while ensuring compliance. Key considerations include:

  • Diversification of Rental Strategies: Investors may need to consider long-term rentals or other forms of accommodation to supplement income during periods when short-term letting is not permitted.
  • Monitoring Booking Platforms: Regularly checking booking platforms to ensure that the 90-night limit is not exceeded is essential.
  • Understanding Local Regulations: Being aware of specific regulations in different boroughs within Greater London is important, as enforcement and interpretation of the rule can vary.

Potential Expansion to Other UK Cities

While the 90-Day Short-Term Let Rule currently applies only to Greater London, there is increasing interest in implementing similar regulations in other UK cities. For instance, Edinburgh has introduced a licensing scheme for short-term lets, requiring property owners to obtain a license to operate legally.

This trend suggests a shift towards more regulated short-term letting markets across the UK. Property investors operating in multiple cities should stay informed about local regulations to ensure compliance and avoid potential penalties.

Conclusion

The 90-Day Short-Term Let Rule is a critical regulation for property investors in London. Understanding its legal foundations, enforcement mechanisms, and implications is essential for compliance and strategic planning. As other UK cities consider similar regulations, staying informed and adaptable will be key to successful property investment in the evolving short-term rental market.

If you’re a property investor seeking guidance on navigating short-term let regulations, contact us for expert advice tailored to your needs.