The 90-Day Airbnb Rule in London and what it means to you

‍The 90-day rule in London restricts entire home rentals to 90 nights per year on platforms like Airbnb. Introduced in 2017, it restricts entire home rentals to a maximum of 90 nights per calendar year on platforms like Airbnb. Designed to help maintain housing availability and minimise neighborhood disruption, this rule enforces automatic booking limitations after the cap is reached. Here’s how it works and how you can maximise rental income while staying compliant.

What is London's Airbnb 90-day rule?

Prior to the 90-day Airbnb rule being implemented, landlords were required to apply for planning permission in order to change their long-term lets to a short-term rental.

Due to a global shift in how people travelled and the economic benefits it would bring to homeowners and guests, the Greater London Council introduced the Deregulation Act 2015, which aimed to relax the rules and allow homeowners to rent out their property on a short term basis (up to 90 nights a year), without requiring planning permission from the local council.  

Airbnb supported this by enforcing the rule on their website in early 2017, and are playing a pivotal part in ensuring that home sharing grows responsibly and sustainably across Greater London.

Why does the Airbnb 90-day rule exist? 

Airbnb’s 90-day rule exists to prevent homeowners from turning their properties into de facto hotels. This can disrupt local neighborhoods and reduce the availability of long-term rentals, ultimately driving up housing costs. The primary goal of the regulation is to protect affordable housing and maintain neighborhood stability by ensuring that properties are not used solely for short-term tourist accommodation.

In which cities does the Airbnb 90-day rule apply?

The 90-day Airbnb rule applies to all ‘entire home’ listings in Greater London. No other cities currently have such a limit in place however, there are ongoing discussions of extending the rule to other major cities. Landlords with properties in other areas would benefit from reading Airbnb’s advice on responsible hosting in order to keep up with any future developments. ‍‍

What happens when the 90-day limit has been reached? 

Once the 90-day limit is reached, Airbnb and other platforms automatically block further short-term bookings for the rest of the calendar year. Notably, this rule does not apply to individual room rentals within shared homes or to rentals outside Greater London. It also doesn’t restrict longer-term rentals that last beyond 90 consecutive days, making mid-term lets an option for hosts to continue earning income legally.

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Staying compliant as a host

Careful planning is key to maximising your rental income while staying within the 90-day limit. Knowing when and how to allocate your rental days can make all the difference.

Effective day-tracking tips:

• Use Airbnb’s tools: The platform's built-in calendar provides a convenient overview of your booked nights. Regularly consult this tool, particularly as you approach the 90-day threshold, to monitor your occupancy levels.
• Utilise booking alerts (if available): If your hosting platform offers booking alert functionality, configure notifications to alert you as you approach critical occupancy milestones (e.g., 75 nights, 85 nights). This proactive approach can help prevent exceeding the limit and ensure ongoing compliance.
• Optimise booking preferences strategically: As you near the 90-day limit, consider prioritizing longer stays or bookings with higher revenue potential to maximise the utilization of your remaining permitted nights. Adjustments to minimum stay requirements or pricing may be necessary to attract these types of bookings.
• Review your booking data: Periodically review your booking data to identify peak seasons, recurring trends, and other relevant insights. This analysis will inform strategic decisions regarding pricing, availability, and overall revenue optimization.
• Have a plan for after 90 days: Upon reaching the 90-day limit, it is essential to have a pre-defined strategy for generating income during the remainder of the year. Options to consider include transitioning to mid-term rentals or exploring alternative hosting platforms that cater to different rental durations.

Although it's possible to request council approval to go beyond London 90-day rule, approvals are rarely granted due to strict planning regulations. It’s better to focus on strategies that maximise income while staying within the rules.

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Pros and Cons of London 90-day rule

Pros:

• Simplifies vacation rental: Allows up to 90 nights without planning permissions, making it easier for homeowners to comply with regulations.
• Supports community: Limits frequent rental turnover.
• Promotes responsible tourism: Ensures a balanced approach to short-term letting, benefiting hosts and permanent residents.

Cons:

• Limits revenue potential: For hosts with high-demand properties, the 90-day restriction can limit potential income during peak seasons.
• Challenges flexibility: Homeowners who want to rent more frequently must explore other rental types or obtain rare planning approvals.‍
• Possibility of penalties: Hosts exceeding the 90-day cap may face fines or platform penalties.

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Essential Q&A for Hosts

Q: Can first-time hosts comply with the London 90-day rule?
Yes, first-time hosts can comply with the Airbnb 90-day rule. The rule is straightforward: in London, entire homes can only be rented out on platforms like Airbnb for a maximum of 90 nights per calendar year unless special permission is obtained from the local council. Smarthost provides full management support, guiding newcomers through every step of the rental process to ensure compliance.

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Q: Are there exemptions to the 90-day rule?
The Airbnb 90-day rule in London has a few exemptions that allow hosts to legally bypass the restriction:

•  If a host obtains planning permission from the local council for short-term rentals, the rule no longer applies. 
• Hosts can rent out individual rooms in their homes without restrictions - Airbnb 90-day rule in London only applies to entire home rentals.
• Long-term and medium-term rentals (more than 90 consecutive nights) are not considered short-term rentals and therefore do not fall under the 90-day rule.

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Q: What options are available after reaching the 90-day limit?

• Apply for a license: You can apply for a license from your local council to rent your property for more than 90 nights per year. However, not all London councils offer this option.
• Long-term rentals and middle term rentals: Switch to offering longer-term rentals (e.g., 6 months or more) using platforms like Rightmove, Zoopla, or OpenRent to avoid short-term rental restrictions.
• Other platforms for different uses: List your property on platforms that cater to specific needs. Remember that the 90-day rule still applies. These platforms facilitate mid- to long-term lets, and short-term rentals remain subject to the 90-day limit (or require planning permission beyond that):
  
  • Corporate rentals: Platforms like Nestpick cater to corporate clients, offering a way to rent your property to business travelers and companies.
  • Student rentals: Use sites like Student.com to target students seeking 
  • Relocation/temporary housing: Platforms such as Oakwood or Furnished Finder are ideal for temporary or relocation rentals.
  • Other options include Serviced Apartments, Co-living Spaces, and Pet-Friendly rentals, depending on your target audience and property type.

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Q: How to get around Airbnb 90-day rule?

There is no way to completely avoid or bypass Airbnb’s 90-day rule in London. Violating this regulation can result in significant penalties, including substantial fines. If you go over the 90 day limit without obtaining the required licence, your local council may impose fines. These can range from a few hundred to tens of thousands of pounds. 

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Q: Can the Rent a Room Scheme violate London's 90-day rule for Airbnb?

If you rent out a furnished space in your main home, you might benefit from the "Rent a Room Relief" scheme, also known as "rent a room tax relief." This allows you to earn up to £7,500 per year without paying tax. The Rent a Room Scheme focuses on tax relief for renting out a room in your main residence, while the 90-day rule focuses on regulating short-term lets in London. They can overlap only if you're using a room in your main residence for short-term letting. 

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Why partner with Smarthost for Airbnb property management?

With deep expertise in London's rental market, Smarthost helps homeowners navigate the 90-day rule with ease. Our services extend beyond compliance, seamlessly managing guest experiences and marketing properties on multiple channels. By strategically balancing short-term and mid-term rentals, we enable hosts to maximise earnings while adhering to regulations, ensuring a profitable and worry-free hosting experience.

Discover how Smarthost makes hosting hassle-free!

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**Disclaimer: This article is designed to provide a general overview of key topics related to home sharing. It shouldn't be regarded as definitive advice. For specifics on local regulations, it's best to consult official authority websites or get professional advice.**

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