Understanding the 90-Day Rule for Short-Lets in London and Overlooked Letting Strategies

London’s short-let market often confuses landlords, especially when it comes to the 90-day rule. Many assume this rule means short-term letting is impossible or too risky in the capital. Others try to work around it without fully understanding how it applies, which can lead to legal trouble. The truth is more complex. The 90-day rule is real and enforceable, but it does not cover every nightly-priced letting model. This distinction is where many landlords miss opportunities.

!Eye-level view of a modern London apartment building with balconies

What the 90-Day Rule Actually Means in London

In Greater London, planning regulations limit the use of residential properties as temporary sleeping accommodation to 90 nights per calendar year unless the landlord obtains planning permission. This rule mainly applies to:

• Holiday lets

• Tourist stays

• Short-stay visitor accommodation

  
  

Platforms like Airbnb automatically cap bookings at 90 nights to comply with this rule. This means if you rent your property as a holiday home or visitor accommodation, you cannot exceed 90 nights in a year without planning permission.

Where Landlords Often Get Confused

Many landlords believe that if they price their property nightly, it automatically counts as short-term letting subject to the 90-day cap. They also assume any short-term letting falls under this rule. Both assumptions are incorrect.

The key factor is how the property is used, not how the rent is charged.

The Important Difference: Use Over Pricing

The 90-day rule targets temporary visitor use, not the rental pricing structure. If a property is:

• Occupied as the tenant’s main home

• Used for work assignments, relocation, or temporary housing

• Let for longer, continuous periods

  
  

then it may not be considered short-term holiday accommodation, even if the rent is charged nightly or weekly.

This type of letting is often called corporate letting or mid-term letting.

What Corporate and Mid-Term Letting Looks Like in London

There is strong demand for mid-term lets in London from groups such as:

• Corporate contractors and consultants

• NHS and medical professionals on placement

• People relocating for work or insurance reasons

• Film, media, and infrastructure project workers

  
  

These tenants usually stay for several weeks or months, using the property as their main residence during that time. This use falls outside the 90-day visitor accommodation limit.

Why Many Landlords Overlook Mid-Term Letting

Landlords often focus on short-term holiday lets because they seem more lucrative or flexible. However, mid-term letting offers several advantages:

• No 90-day limit: Longer stays mean steady income without worrying about planning restrictions.

• Lower tenant turnover: Fewer check-ins and check-outs reduce management time and costs.

• Stable income: Longer contracts provide predictable cash flow.

• Less wear and tear: Tenants staying longer tend to treat the property more like a home.

  
  

Despite these benefits, many landlords do not market their properties for mid-term lets or understand the legal distinction.

How to Use the 90-Day Rule to Your Advantage

Understanding the rule allows landlords to choose the best letting model for their property:

• If you want to do holiday lets, keep bookings under 90 nights or apply for planning permission.

• If you prefer longer stays, target corporate or mid-term tenants who need accommodation for weeks or months.

• Consider flexible contracts that allow stays from 1 month up to 6 months or more.

  
  

This approach reduces risk and opens up a wider tenant pool.

Practical Tips for Landlords in London

• Check your lease and mortgage terms: Some agreements restrict short or mid-term lets.

• Understand your local council’s planning rules: They may vary slightly across London boroughs.

• Market your property clearly: Specify if it’s suitable for mid-term stays to attract the right tenants.

• Use professional letting agents: They can help navigate regulations and find appropriate tenants.

• Keep detailed records: Track bookings and tenancy agreements to demonstrate compliance if needed.

  
  

Case Example: A London Landlord’s Success with Mid-Term Lets

A landlord in Islington initially tried holiday lets but struggled with the 90-day cap and frequent tenant turnover. After switching to mid-term letting, targeting NHS staff on placements, they secured tenants for 3-6 months stays. This change resulted in:

• 40% higher annual income

• Reduced management workload

• Fewer void periods between lets

  
  

This example shows how understanding the rule and tenant needs can improve profitability.