Do you need a landlord licence to rent out your property on Airbnb?

The government has significantly tightened the rules for short-term rentals, and it is safe to say that the era of anyone acting as an Airbnb landlord is over. So, it’s important to note that if you’ve been using an HMO licence and assuming you’re covered for short-term stays, you may face some legal consequences. 

There are now entirely different licensing frameworks when it comes to traditional tenancies and short-term tenancies. Here, we’ll go through everything you need to know about being an Airbnb landlord. 

Tenancy vs. Short-term 

Many landlords think that because they already hold a landlord licence for their borough, they are able to rent, but this is not always the case. 

• Traditional landlord licence (selective/HMO): These are designed for Assured Tenancies where the property is the tenant’s primary home and the focus is on long-term safety and preventing anti-social behaviour in residential neighbourhoods. 
• Short-term let (STL) registration/licence: These are specific licences for holiday lets and Airbnb’s. They also have different safety standards and different planning requirements. 

Regional mandates for becoming an Airbnb landlord

Depending on where you want to invest in property with the aim of becoming an Airbnb landlord, there will be different requirements, varying from a simple registration to needing to have a commercial licence. Here are the different regulations depending on which region you want to invest in: 

England: The national registration scheme

Investing in property in England means that all short-term lets will need to be logged on the mandatory national register. This is due to go live in April 2026. 

• The number is everything: As an Airbnb landlord, you will be given a registration number, which will be needed to register your property on various platforms. Like Airbnb and Booking.com. If you don’t have this number, these platforms will need to delist your property. 
• The 90-day rule: In Greater  London, you’re only able to rent your entire property for 90 nights per year. If you rent it out for longer than this without ‘Change of Use’ planning permission, you will be breaking the law. 

C5 category

It is also important to note that all properties being used for short-term lets need to be reclassified from the C3 (dwellinghouse) to the C5 (short-term lets) category. This shift in regulation has been introduced to manage the impact of holiday lets on local communities. 

Under the previous framework, landlords would operate their Airbnb properties under the C3 classification. This classification, however, is meant to be used for properties that are intended to for the use of primary residences, and the increase in holiday-letting has led to concerns regarding housing shortages for local residents. 

With the introduction of the C5 use class, local planning authorities are now able to distinguish between a permanent home and commercial short-term lets. 

Scotland: The mandatory STL licence

Scotland is the most regulated region in the UK, and since 2023, it has become a criminal offence to be an Airbnb landlord without a Short-term let licence. 

• Secondary letting: If the property you want to rent out is not your main place of residence, being able to get a licence in ‘Control Areas’, such as Edinburgh, is not as easily done and requires explicit planning permission. 
• Fines: If you operate without a licence in Scotland, you’ll be subject to fines and also banned from reapplying for a year. 

Wales: The visitor accommodation register

In Wales, there is a new statutory registration scheme being implemented throughout 2026, and this is linked to the new Visitor Levy (tourist tax), which requires hosts to register with the Welsh Revenue Authority before accepting guests. 

The safety first checklist for 2026

So, as you can see, you are no longer able to self-certify as an Airbnb landlord when aiming to get your registration number or licence. Instead, you’ll need to hold certain professional documentation, for example: 

• Fire risk assessment: This will require you to install interconnected smoke alarms in every bedroom, and it has to be specific to paying guests. 
• EICR (Electrical Safety): A 5-year check is now a legal necessity for all short-term lets across the UK. 
• Gas Safety certificate: If your property has a gas supply, you need to implement annual checks. 
• Public liability insurance: This may be subject to specific councils, but most councils now require proof of at least £2 million in cover for short-term guests. 

So, what happens if you get it wrong? 

If you are an unlicensed Airbnb landlord, there are certain consequences that you will run the risk of coming face to face with, for example: 

1. Platform bans: Platforms will be kicking unregistered Airbnb landlords off and locking them out within 24 hours of a licence expiring. 
2. Mortgage breaches: Usually, most standard buy-to-let mortgages will not allow short-term letting, and if the council finds out that this is the case, they will report you to the lender, who may call off your entire loan. 
3. Insurance invalidation: If a guest is injured on your property and it is unlicenced, your insurance provider will most likely refuse to pay out, which may leave you personally liable for millions of pounds in damages. 

Current regulations have been designed and implemented to make sure that the casual host has been weeded out and that every Airbnb landlord is able to operate with the same level of safety. So, whichever region you find yourself investing in with the idea of renting it out as a short-term let, you always need to ensure that you remain compliant. This is the only way to protect your investment and ensure that your short-term lets are compliant. This will also allow for an even better experience for your guests. 

Are you looking for holiday home landlord insurance? Be sure to get in touch with our team of specialists for a quote! You can also visit our advice centre for more information on how to manage your rental property. Get in touch on 01788 818 670.