July 10, 2023

Understanding the Airbnb 90-Day Rule in London: A Comprehensive Guide

The advent of short-term rental services like Airbnb has revolutionised travel, offering a home-like experience in foreign lands. However, the increasing popularity of these services has raised concerns about their impact on local housing markets, communities, and businesses.

To address these concerns, several cities and regions have imposed restrictions on short-term rentals, including the 90-day Airbnb rule. This guide will delve into the specifics of this rule, its operation, and its implications for communities, hosts, and visitors.

The Airbnb 90-Day Rule Explained

The 90-day rule in London is a regulatory measure introduced to manage the sharing economy. It has been well-received by locals, and Airbnb now automatically limits bookings to 90 days per year for properties without a planning permit from the local council.

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Why was the 90-Day Rule Introduced?

The 90-day limit was enacted in response to concerns about the impact of short-term holiday rentals on local housing markets and communities. In many popular tourist destinations, landlords were converting their properties into full-time vacation rentals, reducing the availability of long-term rental properties and driving up rents elsewhere. This trend was also disrupting the sense of community, making it harder for people to establish roots in the area.

To mitigate these issues, local governments introduced measures like the 90-day rule, which limits the number of days per year that hosts can rent out their entire property on platforms like Airbnb. The rule aims to strike a balance between the benefits of short-term rentals for tourists and the need to maintain a supply of long-term rental accommodation for locals.

The rule has sparked debate, with some hosts arguing that it limits their income potential. However, proponents of the rule argue that it helps preserve the supply of long-term rental housing and fosters a healthy balance between the needs of tourists and locals.

Does the Airbnb 90-Day Rule Apply Outside London?

At present, the rule only applies to properties in the Greater London area, although there are discussions about extending it to other major cities.

How Can I Comply with London’s Short-Term Rental Regulations?

There are several strategies to ensure compliance with the rules. One approach is to list your property as a short-term rental on Airbnb, and once the 90-day limit is reached, convert your listing into a medium or long-term rental. If you inform Airbnb that your listing is a ‘90+ days’ rental, your listing will not be removed, ensuring compliance with local regulations.

The downside is that it may be more challenging to find Airbnb guests willing to commit to stays longer than 90 days. However, there are numerous other rental sites where you can advertise your property for longer-term stays.

How Can CityGuest Assist?

CityGuest has partnered with numerous property owners in London to help them earn more from their Airbnb properties, all the while respecting local rules. We help these owners increase their profits and manage their rental schedules by advertising their properties on different platforms during peak periods to maximise earnings.

With our mixed rental strategy, your property will be occupied throughout the year. We achieve this by renting your property for a short term during the most busy seasons and as a 'mid-term' rental for the rest of the year. Our mid-term tenants are working professionals who often need a place to live for a few months. Payments are collected in advance.

Conclusion

In conclusion, Airbnb's 90-day rule is a divisive policy that has garnered both support and criticism. While the rule aims to alleviate concerns about the impact of short-term rentals on local housing markets and communities, it can also have negative effects on hosts and local businesses. Policymakers must carefully weigh the potential benefits and drawbacks of the 90-day rule and similar short-term rental regulations to ensure they achieve their goals without causing undue harm to hosts or local economies. The success of such regulations depends on striking the right balance between promoting tourism and preserving affordable housing for local residents.

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