Need to know

• The government is considering rolling out regulations for short-term rentals, including properties listed on booking apps.

• A mandatory national register for short-term lets is expected.

• A new planning “use class” is being considered. If introduced, some short-term rentals could require planning permission before they can operate.

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💡Spotlight Article

The flat next door used to be blissfully quiet.

Now?

Every Friday night, it’s the same routine: new faces, suitcase wheels clattering down the corridor right on cue.

🔎What’s happening? 

Short-term rental apps have quietly turned thousands of normal homes into part-time holiday lets. 

Great little earner for hosts. For neighbours, it can feel like living next to a very small, very busy hotel.

The law’s been behind the curve. Now the government is stepping in. 2026 sees the government tightening the reins on short-let rules to bring a bit of order to the chaos.

Using powers in the Levelling-up and Regeneration Act 2023, ministers plan to roll out a mandatory national register for short-term rentals in England.

In practice, hosts will have to register their property and stick a registration number on listings on platforms like Airbnb.

Translation?

Councils will finally know which homes are running as holiday lets. The old line, “just friends staying over”, won’t wash so easily.

And there’s more.

A new planning “use class” is also on the table for short lets that aren’t someone’s main home.

If that comes in, turning a flat into a full-time holiday let could mean applying for planning permission, particularly in areas already short on housing.

The goal isn’t to shut the whole thing down. Short lets aren’t going anywhere. It’s about pulling them out of the shadows.

Councils get oversight, hosts get a few more rules, and neighbours finally get some clarity on whether the Airbnb next door is a casual side hustle or just a very small hotel.

❓ Why it matters to high street firms

Short-term lets might seem like a regulatory minefield, but they’re right in a high street lawyer’s wheelhouse. When the rules change, lawyers are the first people clients call.

Here’s why:

• Small landlords and hosts: Running an Airbnb was a casual side hustle. Now, with registration schemes and potential planning permission, landlords need to know if their flat can even be legally let. If they don’t get it right, they could be in trouble, and they will need lawyers to guide them through.

• Leaseholders pushing boundaries: Many assume “if the platform says it’s fine, it must be legal.” Wrong. The new rules shine a light on lease terms, building regulations, and management company restrictions. Lawyers help clients check all the boxes before any guests show up.

• Neighbour rows and block drama: A flat that’s a weekend revolving door rarely stays quiet. Complaints start flying, tempers flare, and someone’s got to step in without setting off a chain reaction. This is when local law firms are likely to see plenty more work coming their way.

All things considered, short-term lets might look like a maze, but they sit squarely with high street lawyers. As the rules tighten, expect fewer grey areas and a lot more clients asking what they can and can’t do with the nuisance from next door.

Planning Use Class

Homes sit in “use classes” under planning law.

Most are C3, for regular residential use. The government wants a new C5 for short-term lets that aren’t someone’s main home.

Move to C5? You might need planning permission. Stay in C3 and rent occasionally? Just register. For now.

C3 vs C5: the difference between a legit home and red tape hassle.