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Holiday home rentals legalised in London

The UK Government has just introduced the new legislation to allow London homeowners to short let their properties without incurring in fines.

According to clause 44 of the Deregulation Act, which has been enacted yesterday 30 March, home owners will now be able to host guests in their homes for up to 90 days in the year without having to obtain planning permission from their local authority, as required by current legislation (Section 25 of the Greater London Council Act 1973).

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This is a great opportunity for London private property homeowners to ‘participate in the sharing of economy and benefit from recent innovations in information technology’ as stated In the Government policy document on ‘Promoting the sharing economy in London’, first published on 9 February.

The reform of the current legislation will not only further benefit the London’s tourism industry but also allow families to earn extra income to spend on their holidays or within the London economy. Furthermore it will respond to the ever-growing tendency of visitors and tourists to stay in local people’s homes rather than hotels and guesthouses.

A further reason for the Government proposal is to avoid any ‘controversy over the inconsistent application of the current legislation across London Boroughs’. According to The Greater London Council Act 1973, all London residents who fail to secure a planning permission for holiday rentals can incur in a fine of up to £20000. However, as become evident during the Olympics 2012, this clause has been inconsistently applied by local authorities, giving rise to confusion and uncertainty.

    The Government proposal only applies to private home owners and does not ‘provide for new opportunities for short-term use on a permanent or commercial basis’.   Additional safeguards will be put in place in order to protect the residential amenity including:

  •       Withdrawal of the right to let in case of just one successful enforcement action against nuisance
  •       Possibility of local exemption from the right to let where there is a strong amenity case
  • The requirement that properties that are short let must be liable for council tax.

You can read the full Government’s policy document and current approach here.

By Mark Nelson

(Mark is a co-founder of M2 Property with over 25 years experience developing property throughout Prime Central London)

Since the London Olympic Games in 2012, M2 Property has worked with homeowners to help understand how to maximise their significant property assets and to create opportunities of additional income by introducing occasional guests. Having the expertise of a traditional Estate Agent and with more than 40 properties throughout Central London, M2 are able to utilise their extensive letting experience and apply it to this new market area and have called this new part of the business Holiday Rentals.

If you own a property in Central London and would like to talk with one of our Directors, to learn more about hosting guests and our experience in making your property more attractive, please email us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call on 02070438431

Category: Holiday Rentals

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