“Staycations” in the UK have seen increased popularity among Britons in recent years, partly inspired by COVID-19-related travel restrictions.
If this is something you have also noticed, you may have considered turning your own property into a holiday let to gain a steady income from it.
However, it isn’t enough to ensure your property looks presentable and to arrange the right holiday lettings insurance before advertising it on Airbnb.
That’s because you will also need to ask yourself the question: “Do I need planning permission to run a holiday let?” As we explain below, the answer to this query is more complicated than many people may think.
Do You Need Planning Permission for A Holiday Let?
Here are some of the main things you should know about the need (or otherwise) for holiday let planning permission for a property you own:
Key differences between holiday lets and residential lets
It is crucial not to confuse holiday lets with residential lets. These types of let vary markedly in their purpose and the typical duration of a tenancy.
Residential lets – also referred to as “buy-to-let” – are for relatively long-term, primary residences. A typical tenancy length for a residential let is therefore approximately six months to 12 months, or longer.
By contrast, holiday lets are a source of short-term accommodation for people such as holidaymakers and tourists. They are characterised by high guest turnover, with tenancy durations ranging from days or weeks up to a few months.
Change of use and the 90-day rule
If you own a property in the UK and you are interested in renting it out as a short-term holiday let for more than 90 days a year, you will probably need to obtain planning permission to allow for a “change of use”.
It is important to note that the 90-day rule currently applies specifically to the Greater London area. However, there have been discussions about extending similar regulations to other major cities in the UK. So, we would advise you to double-check the exact situation where you are.
Short-term letting in different parts of the UK
The regulations on short-term letting vary across the UK. In parts of the country that presently lack a blanket 90-day rule, it will be up to the relevant local authority to determine whether a property’s proposed change of use requires planning permission.
What Planning Rules Apply to Holiday Lets?
If you’re presently wondering, “do you need planning permission for a holiday let?”, you should familiarise yourself with the below planning rules and principles:
Class use categories and how they apply
In the UK, holiday lets are commonly – although not always – classified as C3, which is the same as a dwellinghouse. This would mean it doesn’t require a “change of use” application.
However, it is also possible in some cases for a holiday let to be classed as C1 (the same as a hotel), or Sui Generis. The latter classification is used for properties that don’t neatly fit into any other class.
Local authority considerations and Article 4 directions
Local authorities that are concerned about the proliferation of holiday lets in their area may use Article 4 directions to remove permitted development rights.
This means that even changes to a property that would not normally require planning permission would need to have local planning authority approval in order to proceed.
Conservation areas, listed buildings, and other restrictions
Listed buildings, as well as properties in conservation areas, are typically subject to more restrictive requirements with regard to proposed alterations or changes of use.
So, to turn your property into a holiday let, you may find that you need to obtain both planning permission and listed building consent.
How To Apply for Planning Permission for A Holiday Let
If it turns out that you do need planning permission for a holiday let, here is what you can expect when you apply for it.
Steps in the planning application process
The first step will typically be to reach out to your local planning authority (LPA) through your local council, for an initial discussion and advice. This will typically be followed by the preparation and submission of the application for the LPA to assess.
Documents and information you’ll need
The documents you can expect to need to gather for a planning permission application will include site plans, architectural drawings, a business plan, and any relevant surveys.
Tips for improving your chances of approval
In assessing your application, the LPA will consider both local and national planning policies. Depending on the nature of the project, the LPA may also consult relevant parties, such as neighbours and heritage groups.
So, by trying to inform and cultivate good relationships with those parties, and ensuring you are well-versed in both local and UK-wide planning policies, you can help strengthen your chances of a successful application.
What Happens If You Don’t Have the Right Permission?
Serious consequences may arise if you fail to obtain the necessary permission. So, you will need to be aware of what these could be:
Risks of non-compliance
The risks of non-compliance can include the local council taking enforcement action against you, and/or your neighbours taking legal action against you.
Enforcement actions and penalties
If you operate a holiday let without the required permissions, you may face enforcement action. This could include being fined and being required to cease letting the property.
Can you apply for retrospective planning permission?
Yes, it is possible to apply for retrospective planning permission for a holiday let. The process is the same as the one that applies before any work is carried out. The local authority will assess any such retrospective application in the usual way.
Holiday Let Planning Trends and Local Policy Changes
There has been a shift lately towards the increased regulation of holiday lets in the UK. Here are some recent developments and trends that you should know about:
Government and council crackdowns on short-term lets
Amid concerns about housing shortages and impacts on communities, both the UK Government and local councils have been intensifying their scrutiny of holiday lets in recent times. There has been an uptick in both new regulations and enforcement measures.
Zoning laws and housing supply issues
There have been moves to adjust zoning laws in the UK in response to concerns about short-term holiday lets’ possible impact on local housing supply. So, you might need to be especially mindful of these laws if your property is in an area that sees high levels of tourism.
What future legislation could mean for landlords
A continued tightening of the legislative and regulatory conditions for holiday lets can be expected over the years ahead.
Since April 2025, for example, Furnished Holiday Lettings (FHLs) have ceased to receive special treatment for Income Tax, Capital Gains Tax (CGT), or Corporation Tax. This ended various longstanding tax advantages for FHLs.
Planning Permission and Holiday Let Insurance
It is easy for some newcomers to this sector to overlook the critical link between planning permission compliance and holiday let insurances:
Why Planning Compliance Affects Your Insurance
If you operate a holiday let without the necessary planning permission, you could be running the risk of your insurance policy being invalidated. This could leave you financially vulnerable if you later find yourself in a situation where you need to make a claim on the policy.
What Policy Powerhouse Can Offer Holiday Let Owners
Policy Powerhouse has an excellent track record of providing affordable, flexible, and dependable insurance for holiday lets in the UK. You can use our platform to buy a quote online in minutes; alternatively, you are welcome to speak to our team.
FAQs
Do I always need planning permission to run a holiday let?
You may need to obtain planning permission to operate a holiday let in the UK. However, whether it is required will depend on such factors as the length of the letting period, and whether a “change of use” from a residential property will be needed.
What is a ‘material change of use’?
A “material change of use”, or MCU, is not just any “change of use”. A “material change of use” is a significant alteration to how a building or land is utilised, to such a degree that planning permission may be required or it impacts on the character of the local area.
What is the 90-day rule for holiday lets?
The “90-day rule” presently applies specifically to Greater London. It prevents the owners of homes or flats from renting out such properties on a short-term basis for more than 90 days in a calendar year, unless they obtain specific planning permission to change the property’s use to a holiday let.
Are you ready to turn your property into a holiday let? If so, make sure you’re fully covered. Get expert advice and the right insurance for your holiday let with Policy Powerhouse today.
