What is the London 90-Day Rule?
The London 90-Day Rule, established under the Deregulation Act 2015, mandates that entire residential properties in the Greater London area cannot be let for short-term stays for more than a total of 90 nights in a single calendar year. A short-term stay is defined as any rental period of less than 90 consecutive nights.
To exceed this annual limit, property owners must obtain formal planning permission from their local council to change the property's use from residential to commercial.
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How it works
The 90-night limit applies to the cumulative total of all short-term bookings for an entire property within a calendar year, from January 1st to December 31st. The rule does not apply to hosts who are letting out a room while they reside in the property.
Major online travel agencies (OTAs) like Airbnb and Vrbo automatically enforce this regulation by tracking the number of nights a property is booked. Once a listing reaches the 90-night cap, the platform's calendar will be automatically blocked, preventing further short-term bookings for the remainder of the year.
Why it matters
This regulation is critical for any host or property manager operating in London, as non-compliance can lead to significant financial penalties and enforcement action from local authorities. The rule is intended to balance the economic benefits of short-term rentals with the housing needs of local residents, preventing the widespread conversion of residential housing into de facto hotels.
This directly impacts a host's potential annual revenue and requires careful management of their booking calendar to remain compliant.
Examples
- A host lists their entire London flat on Vrbo. After accepting bookings that total 90 nights by August, their calendar is automatically blocked by the platform for any further short-term bookings until the next year begins.
- A property owner in Kensington wants to operate their flat as a full-time short-term rental. To do so legally, they must apply to the Royal Borough of Kensington and Chelsea for planning permission to change the use of the property, a process which is not guaranteed to be successful.
- An individual rents out a spare bedroom in their Islington apartment while they continue to live there. The 90-day rule does not apply to these bookings, and they can rent the room out for more than 90 nights per year.
- A property manager who oversees multiple flats must track the 90-night count for each individual property separately to ensure the entire portfolio remains compliant with the regulation.
Frequently asked questions
What happens if I go over the 90-day limit in London?+
Does the 90-day rule apply if I'm renting a room in my house?+
Do bookings longer than 90 nights count towards the limit?+
How do booking platforms enforce the London 90-day rule?+
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