nightlydata

United Kingdom · Greater London

Short-term rental rules in London

Last updated May 16, 2026 Verified May 16, 2026

Legal regime

Primary residences in Greater London may be used for short-term rental up to 90 nights per calendar year without planning permission, provided the host remains liable for council tax on the property (Deregulation Act 2015, s.44, inserting s.25A into the Greater London Council (General Powers) Act 1973). Exceeding 90 nights constitutes a material change of use requiring planning permission from the relevant local borough council. Local planning authorities may by direction disapply the 90-night exemption for specific properties or areas. No national licensing scheme is currently in force; the Levelling-up and Regeneration Act 2023, s.228, grants the Secretary of State power to create a registration scheme by regulation, but no regulations implementing an operational scheme had been made as of 2025.

Key parameters

License required
No
Max nights/year
90

License process

No national licence is required. Hosts wishing to let beyond 90 nights per calendar year must obtain planning permission (change of use from residential use) from their local London borough council. A national registration scheme is enabled by the Levelling-up and Regeneration Act 2023, s.228, but no regulations bringing it into operation had been made as of 2025.

Applicable taxes

  • Income Tax on rental profits

    Rate: 20%–45% (marginal rate) · Basis: Net rental profit taxed as UK property income at the host's marginal Income Tax rate: basic rate 20%, higher rate 40%, additional rate 45%. The Furnished Holiday Lettings tax regime was abolished from 6 April 2025 (Income Tax/CGT) and 1 April 2025 (Corporation Tax); STR income is now subject to standard UK property income rules.

  • VAT on accommodation

    Rate: 20% · Basis: Short-term holiday accommodation is a standard-rated taxable supply at 20%. VAT registration is mandatory only once annual STR taxable turnover exceeds £90,000; most individual hosts remain below this threshold.

  • Council Tax / Business Rates

    Rate: Property and borough dependent · Basis: A property where the host retains council tax liability qualifies for the Deregulation Act 2015 s.44 planning exemption (up to 90 nights/year). A property available for short-term letting for 140 or more nights per year and actually let for 70 or more nights is assessed for business rates instead of council tax, at which point the s.44 planning exemption no longer applies.

Recent changes

  • 2025-04-06

    The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025 (Income Tax and CGT) and 1 April 2025 (Corporation Tax). STR income is now treated as standard UK property income, losing FHL-specific reliefs including capital allowances on furniture, Business Asset Disposal Relief eligibility, and full mortgage interest deductibility.

    Source ↗

  • 2023-12-26

    The Levelling-up and Regeneration Act 2023, s.228, came into force, granting the Secretary of State power to introduce a mandatory national registration scheme for short-term rental properties in England by statutory instrument. No regulations implementing an operational scheme had been made as of 2025.

    Source ↗

Official sources