England to Introduce a Short-Term Rental Register

Short-term rentals in England will face new rules from March 2027. Owners of flats and houses will have to enter information about their properties in a government register. Scotland, Wales and Northern Ireland already have their own systems for registration and oversight.

Preparations for Rental Market Reform

The legal basis for a national register was established by legislation passed in 2023. During public consultations, 61% of respondents supported mandatory registration of short-term rentals. The new system will give local authorities a clearer picture of tourist accommodation and help them monitor compliance with safety requirements.

The requirements will cover flats and private houses advertised through Airbnb, Booking.com and other platforms. Applications are expected to be submitted online. The British professional body Propertymark has called for a straightforward procedure for owners that takes local market conditions into account.

However, entry in the register will not replace planning permission where this is required. Nor will the reform introduce a single nationwide limit on the number of nights.

Rental Demand and Rates in England

In areas popular with visitors, owners often find it more profitable to rent out flats for a few days than for extended periods. Local councils believe that this practice reduces the supply of homes available to permanent residents.

In 2025, the number of nights spent by guests in England through bookings on Airbnb, Booking.com and Expedia Group reached 78.4 million, up 11.1% from 2024. London accounted for 21.56 million, according to the Office for National Statistics (ONS).

The average cost of renting a home reached £1,466 ($1,961) per month in September 2026, an annual increase of 4%. In the capital, it stood at £2,338 (+3.5%), or $3,128.

The housing shortage cannot be attributed solely to the popularity of tourist booking platforms. Over the year to the end of the second quarter of 2026, 202,700 homes were built in England, almost 100,000 below the government's target. Savills notes that the limited number of new projects makes it difficult to increase supply quickly.

Rental Restrictions in England

In London, short-term rental rules allow residential properties to be let to tourists for up to 90 nights per calendar year without special planning permission, provided the relevant conditions are met. Letting for longer requires approval from the local council.

Scotland has required licensing for short-term rental accommodation since October 2022. By the end of December 2025, 32,317 licences and exemptions had been issued. Owners must demonstrate that their properties meet the applicable standards.

Wales introduced free registration for tourist accommodation on 1 October 2026. The requirement applies to owners of flats and houses, as well as operators of hotels and campsites. Existing businesses must submit their details by 31 March 2027.

In Northern Ireland, accommodation providers may accept guests only with a Tourism NI certificate. It is issued for four years following an inspection of the property.

Taxes in the United Kingdom

On 6 April 2025, the UK abolished the Furnished Holiday Lets tax regime, which had provided relief to owners of certain properties. Rental income from these homes is now taxed under the standard rules. Obligations relating to safety and local charges also remain in place.

In England, local taxation also depends on how intensively a property is used for holiday accommodation. Business rates apply if it was available to guests for at least 140 nights and actually let for at least 70 nights during the previous 12 months. The owner must also intend to make it available for at least 140 nights in the coming year. If these conditions are not met, Council Tax generally applies. This distinction predates the announcement of the national register.

Travel preferences are changing too. Savills observes that visitors increasingly book shortly before departure, take shorter breaks and expect higher service standards. These trends make it harder to forecast occupancy outside the peak season.

Outlook for England's Property Market and Investors

International Investment analysts note that tighter regulation and tax policies in the UK have already changed the behaviour of international investors. Wealthy foreign nationals have begun leaving the country. Some owners have put their London properties up for sale. Nevertheless, demand for the most prestigious assets remains, and London continues to be one of the world's leading financial centres.

The introduction of the short-term rental register continues the government's move towards greater oversight. The main risk to international investment stems from the cumulative changes to the conditions of property ownership. Against this backdrop, private capital is increasingly moving towards countries with more attractive tax regimes. For the British market, this means a further loss of competitiveness in attracting overseas buyers, especially in the high-end segment, which has traditionally depended on international demand.

FAQ: Questions and Answers

When will England introduce the short-term rental register?

Mandatory registration is scheduled to begin in March 2027. It will apply to properties offered to tourists for short stays.

Who will need to register?

Owners of flats and houses let to guests on a short-term basis, including those advertised through Airbnb and Booking.com. Applications are expected to be submitted online.

Can an apartment in London be rented out for more than 90 nights a year?

Exceeding that limit requires planning permission from the local council. The national register will not override existing restrictions.

Are the rules the same throughout the United Kingdom?

No. Scotland operates a licensing scheme for tourist accommodation, Wales has a registration system, and Northern Ireland requires certification. Each nation follows its own procedure.

What taxes apply to short-term rentals?

The preferential Furnished Holiday Lets regime was abolished on 6 April 2025. In England, business rates or Council Tax may apply, depending on how the property is used.