London is one of the most visited cities in the world, attracting plenty of tourists throughout the year. With so much to see and do here, it is no surprise that people stay in the city to experience the endless activities and attractions.
When planning a visit to London, tourists often look for places to stay. Airbnb has become a popular accommodation choice for both travellers and business people, providing an easy and cost-effective way to stay in new places. Whether you’re a guest looking for a unique stay or a host hoping to earn extra income, understanding how Airbnb operates in London is essential.
In this guide, we’ll cover everything you need to know about Airbnbs in London, from the legal landscape and the 90-day rule to tips for finding the perfect stay and maximising your hosting potential.
Keep reading to learn more about Airbnb in London, providing insight for both hosts and renters alike.
Airbnb offers a unique and flexible way to experience London, whether you’re visiting for a short city break, an extended stay, or a business trip. One of the biggest advantages of choosing an Airbnb over a traditional hotel is the variety of accommodation options available.
From stylish Airbnb apartments in London to cosy townhouses in quieter neighbourhoods, there’s something to suit every traveller’s needs and budget. This makes it both an easy and convenient way to explore new places while immersing yourself in the sightseeing and attractions.
Another key benefit to staying in an Airbnb in London City is affordability. In many cases, these rentals are more cost-effective than hotels, especially for longer stays or group trips where an entire property can be rented. Due to the self-catering nature of these accommodations, visitors can also save on food and dining as many listings also include kitchen facilities.
Travellers looking for a more authentic stay in London also often opt for Airbnbs. It provides guests with the opportunity to stay in a local neighbourhood providing visitors the chance to explore hidden gems, shop at nearby markets, and enjoy a more relaxed atmosphere compared to busy hotel areas.
With so many benefits to Airbnbs in London, it comes as no surprise why so many opt for this type of accommodation during their travels.
There are a few Airbnb rules in London that should be taken into consideration before listing your property. The city has specific regulations that need to be followed to provide a safe and effective rental experience. Below you’ll find some of the legal requirements for Airbnb UK, to help you get started with the hosting process.
When considering Airbnb regulations, you’ll need to look into requiring a valid licence to list a property for short stays on the website. There are varying criteria to take into consideration when applying for a licence and these often depend on the type of property you are listing.
The licence finder on the UK government’s website will help you see the requirements needed, ensuring you meet the right criteria before applying. Alongside a licence, owners must also have a legitimate registration number that must be included on every Airbnb listing.
Transparency is another important aspect of being a host on Airbnb. You must state whether or not your property is a secondary rental or your main home, allowing visitors to understand whether or not there will be others staying in the accommodation during their visit.
Those renting properties through Airbnb should also be aware that these listings in London are considered taxable income. The amount of tax you pay will ultimately depend on your specific rental alongside the added amenities of the property.
If you are planning to rent a room in your main residence, hosts can get something called Rent a Room Relief, allowing them to earn up to £7,500 a year tax-free. These rooms must be furnished and also adhere to the other rules and regulations from Airbnb.
Hosts earning more than £7,500 a year will need to file a self-assessment tax return through HMRC and must pay any tax that is due. It’s also worth noting that if you’re planning to list an entire apartment, you will be required to pay tax on these properties regardless of what you earn on the rental each year.
The 90-day Airbnb rule was introduced in 2017 and limits short-term rentals of entire home listings in Great London to 90 days per year. Once the 90 days have been reached, Airbnb will automatically block any future bookings until the new calendar year has begun.
All property owners are affected by Airbnb’s 90-day rule and are subject to anyone renting their homes on the site in London. To help you maximise your listing potential, we’ve included some top tips below so that you can understand this rule and make the most out of your rental property.
There is no way to get around the Airbnb 90-day rule, so those thinking of bypassing this will find themselves struggling to do so. This rule was brought in to support sustainable long-term rentals while minimising disruption in the market. Hosts will however find that there are alternatives when it comes to maximising your earnings after the 90-day rule has been reached.
They can choose to either use a mix of medium-term and long-term rentals after reaching the limit. Alternatively, property owners could list the home on a variety of booking platforms, allowing them to attract more occupants throughout the year.
It is important however to remain compliant when listing with Airbnb. This allows property owners to benefit from the long-term success of using the site, providing advantages to both the owners and the wider community.
When renting your property beyond Airbnb’s 90-day limit, property owners will also need to apply for a planning permit. You’ll be required to submit an application form to the local council which outlines the property’s features and rental timeframes.
Within this application, the property usage must also be outlined, alongside any rules or policies that are currently in place for guests. The fee for this application is around £400 and it is worth bearing in mind that it can be challenging to get the form approved.
In order to increase your chances of your application being approved, you’ll need to ensure that your rental doesn’t disrupt the surrounding neighbourhood and local community. This includes outlining any measures that have been put into place to avoid noise issues and environmental concerns.
Due to the competitive nature of Airbnb in Central London, you’re likely looking for ways to maximise your experience, which will then attract more guests to your listing. Luckily enough, we’ve included some tips below to help you stand out in the crowd and make the most out of your rental.
Staying with the regulations when listing on Airbnb ensures that you’re abiding by the rules and operating ethically within the market. We also recommend using some of the tips above to help maximise your rental when considering the 90-day rule. These will ensure you don’t miss out on key bookings.
It’s important to conduct a competitive analysis to understand the pricing of other similar properties in the same area before adjusting your rental price. The market is very competitive, which means owners should consider this when determining the costs associated with staying in the accommodation.
Things like seasonality, features, amenities and location are also key factors when adjusting your pricing on Airbnb.
Standing out from the crowd is essential when listing your property on Airbnb. Things like high-quality photos, stylish decor and essential amenities will all help increase your property’s appeal. However, we also recommend considering added features such as hot tubs, pet-friendly options, welcome hampers and personal touches to help get ahead of your competition.
Serviced accommodation includes properties that are rented out for short-term periods. Long-term rentals often range from 6, 12, 24 months and longer, whereas service properties are for a shorter period.
These rentals are also often fully furnished and provide guests with an array of amenities. They offer visitors the opportunity to enjoy the privacy of a home with the added luxuries of hotel-style services. This often includes things like cleaning, maintenance and even sometimes a concierge service, allowing visitors to sit back and unwind without having to worry about the day-to-day tasks.
You can expect all types of travellers to book serviced accommodation. This often ranges from families, solo travellers, businessmen and women, couples, groups and more. They are a great way to enjoy spacious accommodations while relishing added amenities and luxury features in abundance.
There are plenty of serviced accommodation options available on Airbnb. These range from professionally owned and managed properties as well as private rooms or villa home rentals.
Whether you’re looking for a luxury Airbnb apartment in Central London or would prefer to stay in a stunning townhouse outside of the city, there are serviced accommodation options for all. These provide an excellent way to enjoy a short-term break, all while cleaning and housekeeping are taken care of.
Travellers enjoy the convenience associated with serviced accommodations, so when listing your property on Airbnb, this might be something to take into consideration. This can help attract more bookings to your property, especially for those planning to see the many sightseeing options in London while enjoying a relaxing base.
London is a favoured travel destination attracting countless tourists throughout the year. Many of these travellers are in pursuit of fantastic accommodation, allowing them to explore the city and enjoy a beautiful place to unwind after days brimming with adventure.
With opportunities to attract a diverse range of tourists, from business people to families, couples, solo travellers and more, there are a ton of ways to benefit from listing your property with Airbnb. However, it’s also clear to see that there are things to take into consideration when becoming a host on the site. With legal requirements, including the 90-day rule, tax implications, and more, it’s important to understand what this business venture entails.
We hope that after reading this article, you now know everything about Airbnbs in London, helping you maximise your property and operate effectively within this market. Plus, as it continues to grow, it comes as no surprise that so many are opting for property rentals as a way to increase their income.
If you’re a keen adventurer looking for the best tips, you’ve come to the right place. Backpacker Boy has an array of guides relating to all things travel. Check out the blog here and get ready to embark on your next voyage with everything you need to know in mind.
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