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Mon 06 Apr 2015

New reforms on short term rentals in London

New reforms on short term rentals in London

New Proposal

The new government reforms will give London residents the opportunity to rent their homes out on a short term basis, without paying for a council permit. The new reforms are designed to give owners the opportunity to take advantage of the relaxation in the current restrictions.

Current Legislation

Under current legislation any London resident who wants to rent out their home for less than 90 days must apply for planning permission under Section 25 of the Greater London (General Powers) Act 1973, or face a fine of up to £20,000 for each "offence".

This is set to change with new reforms, when the need to apply for a council permit for short term rentals will be removed under certain conditions.

Government Safeguards

The government will also introduce new safeguards to ensure this new flexibility is not exploited, by:

1. ensuring that, to benefit from the new flexibility, the properties must be liable for Council Tax (excluding business premises);

2. giving councils the power to withdraw this new flexibility if successful enforcement action is taken against a property owner breaking these rules;

3. ensuring that, in exceptional circumstances, councils will be able to request that the Secretary of State agrees to small localised exemptions from the new flexibility, where there is a strong case to do so.


We would recommend that landlords ensure any new leases granted contain sufficient provision restricting sub-letting on a short term basis.

JPC Law would be happy to review the subletting clauses in your lease as part of our free legal health check. Please contact us on or call 020 7625 4424 to speak to a leasehold expert

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