Deregulation Act changes and renting out your home in London
From 26th May 2015, Londoners looking to rent out their properties for up to 90 days per year will no longer need to apply for planning permission to do so.
This brings London in line with the rest of the Country. Thousands of properties in the capital are rented out on a short term basis through companies such as AirBnB and Gumtree.
Prior to the 26th May 2015, those who failed to apply for such permission from their local Council could have faced a fine of up to £20,000 for each unlawful rental. This poorly drafted law which was enforced across the capital has now been amended by the Deregulation Act 2015, the relevant provisions on short term lets came into force on 26th May 2015.
Housing Minister Brandon Lewis welcomed the change. He said the measures, introduced will free homeowners from the “bureaucratic headache” of applying for planning permission just to rent their home out for a few weeks. He further stated; “these outdated and needless rules that restricted London homeowners in what they could do with their home have now been swept away…It will provide income to householders who want to rent out their home – for example, if they themselves go on holiday for 90 days.”
The move was praised by Airbnb, who said the reforms will help locals meet the cost of living in one of the most expensive cities in the world.
The changes do not include short term lets of any business premises. The changes further do not affect any existing clauses which prevent subletting by tenants in their tenancy agreement.
To obtain further information please contact Aisha Akhtar Solicitor in the Housing Management & Leasehold Services Team on 020 8799 1884