Food, Drink & Hospitality UK-wide

Who this guide is for

This guide is for anyone providing paid accommodation in the UK, including hotels, guest houses, B&Bs, holiday lets, serviced apartments, short-term let hosts (Airbnb, Booking.com), glamping operators, and landlords converting residential property to tourist accommodation.

The rules differ depending on where you operate, whether guests sleep on your premises, and how long each stay lasts. England is introducing a mandatory short-term lets registration scheme, Scotland already requires licensing, and planning rules are tightening across the UK.

ℹ️ England short-term lets registration scheme

A mandatory registration scheme for short-term lets in England is expected to launch in April 2026 under the Levelling Up and Regeneration Act 2023. You will need to register before advertising or accepting bookings, and platforms will be required to verify registration before listing your property.

Monitor GOV.UK consultation updates for final details on fees and exemptions.

Tourist accommodation registration

Registration requirements vary across the four UK nations. Failure to register where required can result in fines, removal from booking platforms, and criminal prosecution.

Where registration is not yet mandatory, consider registering voluntarily. This demonstrates professionalism and means you will already be compliant when mandatory schemes are introduced.

Short-term lets regulation

The growth of platforms such as Airbnb has prompted specific regulations covering night limits, planning permission, and registration requirements. The rules differ by location and whether the property is your primary residence or a dedicated holiday let.

The London 90-day rule

In Greater London, the Deregulation Act 2015 limits short-term letting of residential property to 90 nights per calendar year without planning permission. Platforms such as Airbnb automatically block London bookings once this threshold is reached.

Planning implications across England

Outside London, there is no national night limit, but local authorities may impose restrictions through Article 4 directions. The new Use Class C5 for short-term lets means that where an Article 4 direction applies, converting a dwelling (C3) to a short-term let (C5) requires planning permission. Check with your local planning authority.

Fire safety for sleeping accommodation

The Regulatory Reform (Fire Safety) Order 2005 places heightened obligations on premises where guests sleep. Sleeping guests are particularly vulnerable as they may be unfamiliar with the building and may need to evacuate in darkness. Prosecution for non-compliance can result in unlimited fines or imprisonment.

What your fire risk assessment must cover

For accommodation premises, your fire risk assessment should address: means of escape (clearly signed routes suitable for unfamiliar guests); detection and warning systems that will wake sleeping occupants; emergency lighting for corridors and stairways; fire doors to bedrooms and along escape routes; staff training on evacuation procedures; and fire safety information displayed in each bedroom.

For small B&Bs (fewer than 6 guests), a simpler risk assessment may be accepted, but adequate measures must still be demonstrated.

HMO licensing for accommodation providers

Properties with five or more unrelated occupants sharing facilities may be classified as a House in Multiple Occupation (HMO) under the Housing Act 2004. This can catch hostel operators, guest houses, and properties used for staff accommodation. Some local authorities also operate selective licensing schemes covering smaller properties.

If you are uncertain whether HMO licensing applies to your accommodation, contact your local authority housing team. Operating an unlicensed HMO is a criminal offence with unlimited fines, and tenants can claim back up to 12 months of rent through a Rent Repayment Order.

VAT on accommodation

If your taxable turnover exceeds £90,000, you must register for VAT and charge it on accommodation. Short-term stays are generally standard-rated at 20%, but stays exceeding 28 days can become exempt. Getting this distinction wrong is a common error.

Common VAT pitfalls

  • Mixed supplies: Packages combining accommodation with other services may need VAT apportioned between elements
  • Seasonal lets: Stays exceeding 28 continuous days become VAT-exempt from day 29
  • Furnished holiday lets: The favourable FHL tax regime is being abolished from April 2025
  • Cancellation charges: May fall outside the scope of VAT if no supply is made

Water safety and legionella

Accommodation premises are high-risk for legionella. Complex water systems, rooms unoccupied for periods, and features such as showers and spa pools create conditions where the bacteria can thrive. Legionnaires disease can be fatal, and an outbreak linked to your premises could result in prosecution and civil claims.

Key precautions for accommodation providers

  • Flush unused outlets weekly for at least two minutes to prevent stagnation
  • Monitor temperatures: hot water stored at 60C or above, cold water below 20C
  • Seasonal properties: full system flush and disinfection before reopening
  • Spa pools and hot tubs: specialist water treatment, daily testing, and quarterly legionella sampling
  • Record keeping: maintain a logbook of temperature checks and flushing records