Approval for Airbnb hosting
If you’re considering letting all or part of your property out through Airbnb, you may be wondering if there are any legal or regulatory issues to consider. Do you, for example, need council approval for Airbnb hosting? Where your property is located will partly determine what you need to be aware of. Here, we explore Airbnb UK regulations in more detail.
Short term letting
If your home is let for fewer than 90 nights during any calendar year, and you are living at the property during the rentals, you don’t need to apply for any permissions from your local council. This includes properties in London, where guidance has been established to regulate holiday lets. The Airbnb platform helps hosts comply with this limit by restricting bookings once the threshold has been reached.
If you want to rent out your entire home while you’re absent, or you want to let it for more than 90 nights each year, you may need to apply for planning permission. Londoners will certainly need to apply, and legislation changes that are coming into effect in summer 2024 mean those in other areas of the UK may also need to.
Additionally, Airbnb hosts will need to provide details of their property and its availability to a national register from summer 2024.
Mid-term letting
If you are renting out your property for over 90 nights, it’s considered a change of use, for which you’ll need planning permission. Obtaining this involves several steps., but before you apply, you may need to seek permission from various others such as:
- The landlord or freeholder of leasehold properties such as flats
- Your mortgage provider
- Your insurance provider
Once obtained, you will need to submit an application to your local council. This should include a description of your property and the number of nights it is available. You will also need to supply details of potential occupancy during peak periods and specific considerations such as pets, smoking and children’s play areas. A fee will be charged for your application; the amount will depend on your local authority but in London the charge is £400.
Of course, planning permission is not guaranteed, and failing to apply or ignoring a rejected application could result in enforcement action. This might take place up to four years after your breach and can mean anything from a demand for a retrospective planning application to demolition of any development you may have undertaken.
Tax obligations for Airbnb income
There has been some discussion in the news recently about Airbnb and tax. UK hosts must now ensure they’re declaring income made via Airbnb to HMRC via their Self Assessment tax return. Those who are renting out a room in their primary residence can take advantage of the Rent a Room relief, which enables landlords to earn up to £7,500 per year without paying Income Tax. Those earning money from a second property can earn just £1,000 each year before they need to pay Income Tax. For tax advice regarding your Airbnb, contact Ibiss & Co today. With offices in Barking, Tooting and Walsall, we can help you comply with your tax obligations when renting out your property.
