Short-term let licensing across the UK

Short-term let licensing and registration in the UK is no longer a single set of rules, but a patchwork that differs across England, Scotland, Wales and London. Over recent years each nation, and many individual cities, have introduced or proposed schemes to bring short-term lets under control, and the direction of travel is clearly towards more regulation. Anyone buying or running a short let needs to know which rules apply to their specific property.

This guide sets out the main regimes: Scotland's licensing scheme, Wales's 182-day letting test, London's 90-night cap, and the new English registration scheme. We arrange holiday let and serviced accommodation finance as a broker and introducer, not a lender. This is general information only, the rules change and are applied locally, so always confirm the current position with the relevant council before you let.

Scotland: short-term let licensing

Scotland operates the most comprehensive regime in the UK. All short-term lets across Scotland require a licence from the local council, and operating an unlicensed short-term let is an offence. The licence covers safety standards, including gas, electrical and fire safety, and the suitability of the operator, and councils can attach conditions and refuse or revoke licences. The scheme applies to whole-property holiday lets, rooms within a home and secondary lets alike, with the detail varying by council.

Alongside licensing, Scottish councils can designate short-term let control areas, within which using a property as a short-term let amounts to a change of use that requires planning permission. The combination means that in much of Scotland, and particularly in Edinburgh, you need to confirm both the licensing requirement and whether a control area applies before you let. Because the scheme is administered locally and conditions vary, the only reliable approach is to check directly with the relevant Scottish council for your property.

Wales: the 182-day letting test

Wales does not have a national licensing scheme of the Scottish type, but it applies a significant test for the favourable tax-and-rates treatment of holiday lets. To be classed as a self-catering holiday let for non-domestic (business) rates rather than council tax, a property in Wales must be available to let for at least 252 days and actually let for at least 182 days in the year. Properties that fail this test fall back to council tax, where local councils can apply substantial premiums to second homes and long-term empty properties.

Wales has also given local authorities planning powers to require permission for change of use to short-term let or second home in designated areas, and has been actively using policy to manage the impact of holiday lets and second homes in pressured communities. The practical effect is that a Welsh holiday let needs to be genuinely and regularly let to keep its favourable treatment, and that the local planning and premium position should be checked before buying. As always, confirm the current rules with the relevant Welsh council.

London: the 90-night rule

London has a specific and longstanding restriction. Under legislation dating from the Deregulation Act 2015, letting a whole home in Greater London on short-term lets is limited to 90 nights in a calendar year without planning permission for change of use. Exceed 90 nights without that permission and you are in breach, and the major booking platforms apply automated night limits to London listings to help enforce the cap.

The 90-night rule is the single most important constraint for anyone running serviced accommodation or a whole-home short let in London, because it caps the income a property can earn from short letting unless planning permission for the change of use is obtained, which is far from guaranteed. It does not apply to lettings of individual rooms in an occupied home in the same way, and the detail can be nuanced, so anyone planning a London short let should take the 90-night cap as central to the model and confirm the position before committing.

England: the new registration scheme

Outside London, England has historically had lighter-touch rules, but that is changing. The UK government is introducing a registration scheme for short-term lets in England, designed to give local authorities visibility of where short lets operate, alongside planning reforms that may require permission for new short-term lets in some areas. The scheme is intended to be a mandatory register rather than a full licensing regime of the Scottish type, but the precise requirements and timing are being implemented in stages.

Individual English councils are also using existing planning powers and, in some cases, seeking additional controls to manage short lets in pressured areas. The result is that even in England, where the rules have been lightest, an investor should not assume short letting is unrestricted, and should check both the emerging national registration requirement and the specific local position. Because these schemes are new and evolving, confirming the current rules with the relevant council and keeping an eye on national policy is essential.

Why licensing matters for financing

Licensing and registration are not just compliance, they affect fundability. Lenders increasingly ask about the regulatory position of a short let, because a property that breaches licensing, planning or night-cap rules is a weaker and riskier asset, and one whose income could be curtailed. A London property bumping against the 90-night cap, or a Scottish let without its licence in order, is a harder credit story than one where the position is clearly compliant.

Getting the licensing right therefore supports your funding as well as keeping you lawful. When we package a holiday let or serviced accommodation case, we set out the regulatory position clearly, because a compliant, well-evidenced deal is more straightforward to fund. We arrange the finance as a broker and introducer, but confirming and maintaining the licensing, registration and planning position is the owner's responsibility, to be checked with the relevant council and a solicitor.