Airbnb and Short Lets in 2026: Planning Rules, 90-Day Limits and Licensing Schemes

The Legal Landscape for Short Lets in 2026

Short-term letting through platforms like Airbnb, Vrbo and Booking.com has become a significant source of supplementary income for property owners across the UK. It has also generated significant regulatory pressure, particularly in areas where the conversion of residential properties to de facto holiday lets has constrained housing supply or disrupted residential neighbourhoods.

As of 2026, hosts in England face a materially changed regulatory environment compared to 2020. Two significant developments have reshaped the landscape: a new mandatory short-term let registration scheme and revised planning use class rules that give local authorities new powers to control short-letting.

The 90-Day Rule in London — What It Actually Means

The 90-day rule applies only in the London boroughs, under the Deregulation Act 2015 (as amended). It permits London homeowners to let their entire home as short-term accommodation for up to 90 nights per calendar year without requiring planning permission for a change of use. This is sometimes called the "Airbnb exemption."

Critically, the 90-day limit applies per calendar year (1 January to 31 December), not per tenancy or per guest. Hosts who exceed 90 nights in a calendar year are technically operating without planning permission and may be subject to enforcement action by their London borough council.

The rule has several important caveats:

• It applies only to entire-home lets, not rooms within an occupied home (which are covered differently under permitted development).
• It does not apply outside Greater London. In other English cities, short-letting regulations are set at local authority level through planning policy and, increasingly, through the new registration scheme.
• Some London boroughs have sought Article 4 Directions to remove the Deregulation Act exemption in specific areas. Check your borough's planning policies.

The Mandatory Short-Term Let Registration Scheme

The Levelling Up and Regeneration Act 2023 gave the government powers to introduce a mandatory registration scheme for short-term lets in England. The scheme was launched in 2025. By 2026, anyone offering a property as a short-term let (defined as accommodation provided for less than 90 consecutive nights for payment) must register with their local authority and obtain a registration number.

Key features of the scheme:

**Registration requirements:** Hosts must register each property separately. Registration involves confirming the property's address, the type of accommodation, the owner's identity, and compliance with basic safety standards (gas safety certificates, electrical installation condition reports, smoke and carbon monoxide alarm requirements under the Smoke and Carbon Monoxide Alarm (England) Regulations 2022).

**Mandatory display:** Registration numbers must be displayed on all platform listings. Platforms are required to remove listings that do not carry a valid registration number after a transition period.

**Penalties for non-registration:** Operating without registration is a civil offence with fines of up to £2,500 per property under the Levelling Up and Regeneration Act 2023 provisions.

Planning Use Class Changes

In addition to the registration scheme, the government introduced a new planning use class — C5 (short-term lets) — in 2024 via the Town and Country Planning (Use Classes) (Amendment) (England) Regulations. Properties used as short-term lets for more than 90 days per year (or outside the London Deregulation Act exemption) now fall within C5 rather than C3 (dwellinghouses).

This change is significant because:

• Planning permission is required to change from C3 to C5. Local authorities can refuse permission or attach conditions.
• Local authorities can adopt Article 4 Directions to remove the permitted development right to change from C3 to C5 without permission. Several councils in areas with acute housing pressures have already done so.
• A property operating as a short-term let without appropriate planning permission may be subject to enforcement action by the local planning authority.

Tax Considerations

The Furnished Holiday Let (FHL) tax regime, which provided landlords with advantageous tax treatment for qualifying short-term lets (including capital allowances, pension contribution eligibility and capital gains tax reliefs), was abolished from 6 April 2025 following the Autumn Budget 2024 announcement. Short-term let income is now taxed as standard property income, and hosts should ensure their Self Assessment returns reflect this change.

The Rent a Room scheme (up to £7,500 per year tax-free for letting a room in your main home) continues to apply where you are present in the property.

Practical Steps for Hosts

Before letting any property on a short-term platform in 2026: confirm your planning position and check whether an Article 4 Direction applies in your area; register under the mandatory short-term let scheme; obtain current gas safety, electrical condition and energy performance certificates; check your mortgage and buildings insurance terms (many standard policies exclude short-term letting); and if you are a leaseholder, check your lease — many leases prohibit short-term letting entirely.