The 90-Day Airbnb Rule in Greater London
In January 2017, Airbnb introduced a 90-day limit on ‘entire home’ listings in the Greater London area, now commonly known as the '90-Day Airbnb Rule'. This means a property can’t be let out on Airbnb for more than 90 days of occupied nights per year. Once your limit has been reached, Airbnb will automatically close bookings for your property until the end of the calendar year. The 90-day limit applies to both 90 consecutive days or 90 days spread throughout the year.
Understanding the 90-Day Limit: What You Need to Know
In January 2017, Airbnb introduced the "90-Day Airbnb Rule", which sets a limit of 90 days on short-term stays for 'entire home' listings in the Greater London area. This rule applies to all property owners who wish to let their homes on Airbnb and restricts the number of days a property can be rented out for short-term stays to a maximum of 90 days per year, whether consecutive or spread throughout the year. Once this limit is reached, Airbnb automatically closes bookings for the property until the end of the calendar year. This article will provide a comprehensive guide to the 90-day limit and its implications for homeowners and hosts in London.
The Implementation of the 90-Day Airbnb Rule: Reasons and History
The 90-day Airbnb rule, also known as the "90-Day Airbnb Rule," was introduced by Airbnb in January 2017 in the Greater London area. Its purpose was to legalise short lets and holiday rentals in London, which previously required homeowners to obtain planning permission from the local council. The rule was necessary because of the Greater London Council (General Powers) Act 1973, which prohibited any short lets, defined as any single stay of less than 90 days, in the Greater London area.
However, the advent of the sharing economy and the popularity of platforms like Airbnb led to a thriving global home-sharing industry. In recognition of the benefits that this industry brings to homeowners, guests, and local economies, the Deregulation Act 2015 was brought in to relax the previous rules.
As a result of the Deregulation Act, homeowners in London are now able to rent out their properties for short-term stays of up to 90 nights per year without requiring planning permission from the local council. This has provided a welcome boost to the sharing economy in London and has allowed homeowners to benefit from the income generated by short-term rentals while complying with regulations.
Arguments for and Against the 90-Day Limit: A Lively Debate
Argument for:
Some argue that limiting the number of days a property can be short-let is necessary to maintain control over the community and housing supply. Concerns have been raised about the impact of short-term rentals on local neighbourhoods, such as increased noise levels and transient populations. The Institute for Public Policy Research has conducted research that supports this view, suggesting that short-term rentals hurt the availability of long-term rentals and affordable housing in London.
Argument against:
Others believe that the 90-day limit is too restrictive and unfair to homeowners who may need to rent their properties for longer due to work or travel commitments. They argue that the focus should be on responsible hosting, ensuring that guests adhere to rules and regulations and respect the local community. Additionally, some feel that short-term rentals provide economic benefits to homeowners, guests, and local businesses, such as increased tourism and spending.
It's worth noting that the debate surrounding the 90-day limit is ongoing and complex, with valid arguments on both sides. Ultimately, it comes down to finding a balance between regulating short-term rentals and sustainably supporting the home-sharing economy.
Houst's Perspective on the 90-Day Limit
According to James Jenkin-Yates, the founder of Houst, the company is pro-regulation and emphasizes the importance of control and visibility for a community. While they support regulation, they also believe that the 90-day limit on short-term letting is too restrictive. Jenkin-Yates points out that other global cities like Paris have set the threshold at 120 days. Many Houst hosts are away from their homes for more than 90 days, but cannot put their properties on the residential market because of their need to come and go regularly or because the total availability is unclear. Houst believes responsible hosting is crucial, and the benefits to the community outweigh any downsides.
How Houst Can Help You Maximize Your Earnings and Comply with the 90-Day Limit
Houst is dedicated to offering a responsible, innovative and sustainable approach to home-sharing. We understand the significance of complying with regulations in every city we operate, including London. We assist property owners in managing the Airbnb 90-day Rule while maximising their earnings by utilizing a mix of long-term, short-term, and holiday lets.
To enable hosts to get the most out of their properties, we list them on multiple platforms, including Airbnb, Expedia, and Booking.com. During peak seasons, we also offer holiday lets to capitalize on higher rates, while longer periods of 3 to 6 months are provided via Zoopla or Rightmove during quieter seasons. Classic AST contracts can also be utilized to find long-term tenants. By optimizing the letting cycle, our hosts can earn more money than they would with traditional long-term letting, as it allows them to fill void periods and make the most of peak season rates.
Complying with the 90-day limit is important, but we believe that regulation is beneficial, and there are still many opportunities to capitalize on the various letting types available. Our team will build and manage a tailored cycle that best suits the needs of the property owner.
Is it possible to bypass the 90-day limit on Airbnb in London?
No, it is not possible to bypass or avoid the 90-day limit for Airbnb in London. This limit is in place to ensure that Airbnb and short-term rentals are sustainable in the city and to minimise disruption while maximising the benefits of the tourism industry. However, there are alternative strategies that can help property owners maximise their earnings while staying within the regulations.
One strategy is to use a combination of different letting types, such as medium and long-term rentals, to fill the rest of the year after the 90-day limit has been reached. Houst can help by integrating multiple booking websites to give property owners a consolidated view of their calendar and optimise between different booking websites while staying within the regulation.
For example, property owners can list their property on Airbnb during the summer months and then rent it out to corporate or longer-term travellers for the rest of the year. With the rise of remote work and digital nomads, there is a growing demand for longer-term rentals from individuals looking to join communities for 3-6 months.
While it may be tempting to try and bypass the 90-day limit, it is important to comply with the regulations and work within the available options to maximise earnings and benefit both the property owner and the local community.
Unlock the true potential of your rental property in London with Houst - Earn up to 56% more than traditional long lets.
**This article is intended to highlight just some of the key issues involved with home sharing. It should not be taken as formal advice. If unclear on regulations in your city, you should always read up on the relevant authority websites and/or seek professional advice.**
