Short Term Lodging London Guide for Landlords

Letting Landlords

Posted in Nov 14 , 2025

London is among the world’s most visited cities, welcoming millions of tourists, professionals, and students every year. As a result, short-term lodging in London has become an effective way for landlords to earn high rental yields whilst keeping their properties occupied by renters.

However, with recent changes to local laws and the upcoming 2026 licensing reforms, it has become necessary for landlords to manage it to remain legal and profitable. Here’s a helpful guide for you:

The Rising Demand for Short Term Lodging in London

In the last few years, short-term lodging has made headlines in the rental market. According to data from the Office for National Statistics (ONS), more than 5 million guest nights were spent in short-term lets in London in 2023. This makes the capital one of the largest short-term rental markets in Europe.

The demand is driven by multiple factors, including international tourism, local travelling, families seeking temporary residence, and students. Moreover, several platforms allow landlords to advertise their properties to a global audience.

What Are The Legal Rules for Short Term Lodging?

As per the Deregulation Act 2015, if you are a landlord offering short-term lodging in London, you are allowed to let your entire property for up to 90 nights per calendar year without applying for planning permission.

If you exceed the limit, you will need to obtain approval from the local borough council, and any failure will result in heavy fines and restrictions. Boroughs such as Westminster, Camden, and Kensington & Chelsea have already introduced monitoring systems to identify properties breaching the rule.

The UK government is already planning to introduce a national short-term let registry in 2026 to improve the safety and transparency standards. Landlords will have to register to let their properties.

How To Stay Compliant?

As a landlord, you must ensure:

The property meets all gas and fire safety regulations.
The property is properly insured for short-term guests.
Booking records are kept to prove they have not exceeded the 90-day limit.
They pay relevant income tax and, where applicable, council tax reclassification.

What’s the Market Trend for 2025–2026?

The short-term lodging market in London is continuously on the rise, according to data from the Greater London Authority (GLA). Around 3% of London's housing stock is used by short-term residents. The government plans to tighten regulations, so the market is expected to shift towards better options.

Apartments or corporate lets are expected to dominate in 2026, whilst tenants are also averaging more stays, which will help landlords keep on track with bookings whilst staying under the 90-night legal limit.

Benefits and Risks of Short Term Letting

For landlords, short-term lodging generates higher returns than long-term lets. It allows owners to use the property personally as well and adjust the prices seasonally. But the risk involves increased council laws, unpredictable rates, or potential property wear and tear that must be dealt with.

The key is to find the balance through a reliable, local estate agent like Cribs Estates, which has years of experience managing lettings for its landlords.

The Future of Short Term Lodging in London

In 2026, new laws and registration models will be introduced, so landlords need to prepare early. The focus will be on volume listings, quality, compliance, and well-managed short-term stays. Listings that are licensed and verified will appeal to more tenants, ultimately bringing more returns.

Frequently Asked Questions

1. Can I rent out my spare room without breaking the 90-day rule?
Yes. The 90-day limit applies only to entire properties. If you’re renting out a spare room whilst living in the same property, you’re usually exempt, but you must still follow safety and tax rules.

2. Do I need a licence for short term lodging in London?
Currently, you only need a licence if your borough requires it or if you exceed the 90-day limit. However, from 2026, a national registration scheme will make it mandatory to register all short-term lets.

How Cribs Estates Supports Landlords?

At Cribs Estates, we help landlords at every step, including property marketing and guest vetting, compliance checks, and maintenance.

We stay up to date with the latest council and government regulations, ensuring your property remains fully compliant under the 90-day rule and upcoming 2026 licensing laws.

By combining local market expertise with professional management, Cribs Estates helps you maximise your rental income. Whether you’re letting a studio or a serviced apartment in Central London, we ensure your property is handled with care and precision.

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