Is Airbnb legal in London?

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London, United Kingdom Airbnb Rules & Regulations

Last updated on: 21st August, 2024

Regulation level: Lenient

Short-term rentals are not regulated in London. Yes, there is the 90-day rule, in which entire home listings can only be booked for 90 days a year. However, it's not strictly enforced. There are over 25,000 entire home Airbnb listings in Greater London. Less than 5% of Airbnb listings have put their registration number on their Airbnb profile. This means that most hosts are running Airbnbs without being regulated. Most people face challenges from their flat-level rules. Many flats and apartments have vague terms about using your space for short-term rentals.

Here are some statistics! As of 21st August, 2024, there are 51,212 listings available in London from Airbnb alone. City Relay manages 286 listings, while Property By Capital and Veeve operates 241 and 165 respectively. Out of 51,212 listings, 0% of listings have short-term rental licenses. Most listings are operating without official license. It means short-term rental regulation isn't strictly enforced in London.
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Map
Occupancy Rate

73%

£136

Daily Rate

£34K

Revenue (2023)

51,212

Number of Listings

Short-term Rental Regulation & Rules in London

In London, Airbnb regulations are primarily encapsulated in the "90-day rule," which was designed to legalize short-term lettings in the city. Prior to this rule, the Greater London Council (General Powers) Act 1973 prohibited property owners from renting out their homes for less than 90 consecutive days without planning permission.

Since the implementation of the 90-day rule, property owners can commercially rent out their entire homes for up to 90 nights per calendar year, either consecutively or spread throughout the year. Once this limit is reached, Airbnb's system automatically blocks any further bookings for that property until the next calendar year.

The rationale behind the 90-day rule includes maintaining a semblance of control over the welfare of transient guests and ensuring stability in local housing markets. Proponents argue that it helps manage the community's integration with short-term renters, whereas critics question the necessity of such regulations, asserting that homeowners should have the right to determine how long they can rent their properties without local council intervention.

Ultimately, the 90-day rule represents a compromise between allowing property owners to monetize their homes and addressing community concerns about fluctuating populations and housing affordability. Homeowners now face a decision between short-term seasonal rentals and lower-risk long-term leases, with the need to navigate regulations that limit their rental timelines.

Anyone wishing to exceed the 90-night limit must obtain relevant permissions and have them recognized by Airbnb to keep their listing active beyond the threshold.

Airbnb Statistics in London! 🚀

Currently, there are 51,212 Airbnb listings in London, with 39% of entire houses earning up to £3,268 a month. The Average Occupancy Rate in London is 73% and the average daily rate is £136. According to vacation rental market data source Airbtics, a 2-bedroom apartment in London can make up to £52,786 each year.
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