Short-Term Lets in 2026: Planning, Registration and How Lenders Assess Nightly Income

Short-term letting is becoming more regulated across the UK. Each nation now has, or is about to have, its own system for registering or licensing short-term lets. Lenders follow these rules closely, because a property that can't legally be let short-term can't produce the income that supports the loan.

England: a national register is coming

The government has committed to a mandatory national register of short-term lets in England, using powers in the Levelling-up and Regeneration Act 2023. Each property will receive a registration number to display on listings, and hosts will need to show basic safety compliance. The register has been delayed from its original 2026 target and is now expected to launch in 2027. Check GOV.UK for the confirmed date and fee.

A separate proposal for a new planning use class (C5) for short-term lets, consulted on in 2023, is still not in force. If introduced, councils could require planning permission for new short-term lets in specific areas.

London: the 90-night rule

In London, letting a whole home short-term for more than 90 nights a calendar year needs planning permission. This has applied since 2015. Many platforms cap bookings automatically, but planning breaches remain the landlord's responsibility.

Scotland: licensing

All short-term lets in Scotland need a licence from the local council. Some councils also have short-term let control areas, where planning permission is needed too. Lenders will expect to see the licence.

Wales: registration and a visitor levy

Wales is introducing statutory registration for visitor accommodation, which must be completed by 31 March 2027. Welsh councils can also introduce a visitor levy per person per night, but must give a year's notice before charging it.

Business rates or council tax

In England, a self-catering property is assessed for business rates instead of council tax only if it is available to let for at least 140 days a year and actually let for at least 70 days. Wales uses higher thresholds. Small business rates relief can reduce the bill for qualifying properties.

How lenders turn nightly income into a loan

A city-centre two-bed flat, all figures illustrative:

Average nightly rate: £110 Occupancy: 65% Projected gross short-let income (a year): £26,098 Long-term rent if let on a standard tenancy: £13,200 (£1,100 a month)

On a long-term rent basis at 125% ICR and a 5.5% stress rate, the maximum loan is about £192,000. On projected short-let income before any discount, that rises to about £379,607. In practice, lenders that use projected income usually apply a discount or a higher rental cover ratio, and every lender caps the loan by loan-to-value. Real offers usually sit somewhere between the two figures. Agree the assessment basis before you pay for a valuation.

Get ahead of the rules

Use the complex BTL calculator, with "Short term let" selected, to test both income bases. For financing basics, see: https://www.dynesourcer.co.uk/blog/complex-btl/short-term-let-mortgage-serviced-accommodation

Compare short-term lets in the complex BTL calculator. HMO, MUFB, MPOT, short-term let, holiday let and other specialist property types all use this same tool.

https://www.dynesourcer.co.uk/mortgages/complex-buy-to-let-mortgage-calculator

For standard single-let buy-to-let mortgages:

https://www.dynesourcer.co.uk/mortgages/buy-to-let-mortgage-calculator

FAQs

Do I need to register my Airbnb in England

Not yet. The national register is expected in 2027. Prepare your safety paperwork now.

Does the 90-night rule apply outside London

Not as a national rule. A similar limit has been proposed for England but is not law.

Do lenders check licences

Yes, especially in Scotland and wherever local rules apply.

What happens if rules change after I buy

Your income may fall. Choose locations with strong demand from both short-term guests and long-term tenants, so you have a fallback.

Important information

Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Consumer buy-to-let mortgages, and mortgages where you or a close family member will live in the property, are regulated. Dynesourcer Ltd is an Introducing Appointed Representative of Dynamic Commercial Finance Ltd, which is authorised and regulated by the Financial Conduct Authority, FRN 946483. A broker fee may be payable on application; we will tell you the amount before you proceed. This article is general information, not personal advice or tax advice. Tax treatment depends on your individual circumstances and may change. Figures correct as at 29 October 2026.