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Some considerations for short term rentals

about 1 year ago
Some considerations for short term rentals

If you are considering to short let your property in London, then, by virtue of the s.44 Deregulation
Act 2015 amendment to s.25 The Greater London Council (General Powers) Act 1973, a property can
be let out for up to 90 nights in a calendar year without issue.

Thereafter, in London, a residential property may only be used as ‘temporary sleeping
accommodation’ (i.e., let short term) if two conditions are met. These conditions are:

  • – The total number of nights (of various tenancies) must not add up to more than 90 nights in
    a calendar year.
    – At least one of the persons providing the accommodation must be liable to pay council tax at
    the property where the short-term accommodation is provided.

However, if the property is let for more than the statutory maximum of 90 nights in different
tenancies, planning permission from the relevant local council is required for what is a change of
permitted use under planning legislation. It is unlawful for a residential property in London to be
used as ‘temporary sleeping accommodation’ without planning permission when it doesn’t meet
these two conditions and if found liable you could be faced with planning enforcement.

The Government has released two consultation papers on short-term lettings.

The first Consultation Paper is on the introduction of a new planning use class for properties used for short-term lettings. Currently, dwelling houses have a C3 use class. The proposal is that a new class – C5 – is to be created for property let other than on a standard tenancy.

The second Consultation Paper is on whether local authorities should monitor properties being used as a main home, second home or for short-term lettings, potentially through a register.

Joanna Koperska, Head of Property Management, comments on her experience of the short-let
market against long-term tenancies:

“The feedback from landlords who have gone down the short-term rental route in the past is that
the hassle and cost of turning over tenants quicker, and the inevitable increased void periods, means you are typically better looking for a longer-term tenant even before this 90-day regulation with planning enforcement is considered.”

To speak with Joanna on this subject or Michael Dell, Area Lettings Manager, please see their
contact details here.

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