Can a tenant let out a property on Airbnb?

Airbnb has grown at an extraordinary pace, now operating in 191 countries and hosting millions of listings worldwide.

With an average of six guests checking in every second, short-term letting remains an attractive income stream for homeowners and tenants alike. But tenants considering Airbnb hosting face a very different legal landscape from property owners. In the UK, renting out a home on Airbnb without permission can breach tenancy agreements, planning law and other legal obligations, often leading to eviction or financial penalties. Understanding the risks is essential before listing a property on any short-let platform.

Why Airbnb hosting appeals to tenants

In high-demand cities like London, which has nearly 95,000 listings, Airbnb and other short-let platforms can generate higher returns than traditional rentals. The ease of listing a spare room or entire property makes it tempting for tenants to believe they can host without difficulty. However, the reality is that short-term letting by tenants is heavily restricted, and most tenancy agreements prohibit it unless the landlord gives explicit written consent.

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Tenancy agreements and subletting restrictions

For most tenants, the primary issue is the tenancy agreement. Assured shorthold tenancies almost always forbid subletting or using the property as a short-term holiday let. Listing a property on Airbnb without consent will usually amount to a breach of contract.

Landlords include these restrictions because short-term letting can invalidate insurance policies, breach mortgage conditions, and place the landlord in breach of their own lease if the property is leasehold. It may also lead to nuisance or excessive footfall in communal areas, affecting neighbours and building management.

Planning law and local authority rules

Planning regulations can restrict the use of a residential property for short-term letting. In London, for example, properties may be used as short-term lets for up to 90 nights per calendar year before planning permission becomes necessary. Many local authorities actively monitor and enforce these restrictions. Tenants who ignore planning requirements may expose themselves and their landlords to enforcement action, including fines.

Insurance and mortgage considerations

Standard home insurance policies rarely cover the additional risks associated with hosting paying guests. Damage, loss, and liability claims arising from Airbnb stays may therefore fall outside the scope of standard cover. Mortgage lenders also frequently require consent to sublet or use a property for commercial purposes. A tenant listing a home on Airbnb may therefore create significant financial and legal exposure for the landlord.

Restrictions in leasehold properties

Where a property is leasehold, the head lease commonly restricts subletting or short-term holiday letting. These clauses are often designed to protect the security, community feel and management standards of a building. If a tenant sublets in breach of the lease, the freeholder or managing agents may hold the landlord responsible. This can lead to legal action, additional costs and even forfeiture proceedings in serious cases.

Tax implications and compliance obligations

Income earned through Airbnb is taxable. Since April 2025, following the abolition of the Furnished Holiday Lettings regime, short-let income is treated the same as standard property income. Tenants should also be aware that they may have duties under the Right to Rent scheme if they let all or part of a property to paying guests. Compliance failures may carry criminal and civil penalties.

Impact of the Renters’ Rights Act 2025

The Renters’ Rights Act 2025 is currently reshaping the private rented sector across England and Wales. One of the most significant changes is the abolition of Section 21 “no-fault” evictions, which will take full effect from May 2026. This reform means landlords can no longer remove tenants without providing a lawful reason. In cases involving unauthorised Airbnb hosting, landlords will therefore need to rely on Section 8 grounds such as breach of contract or nuisance. The Act does not make Airbnb hosting any easier for tenants; instead, it clarifies how landlords must deal with breaches.

How landlords should respond to unauthorised Airbnb hosting

Landlords who discover that a tenant is letting out a property on Airbnb should first review the tenancy agreement to confirm the relevant clauses. Opening a calm and constructive dialogue with the tenant often resolves the issue quickly, particularly where the tenant was unaware of the breach.

If the issue persists, landlords should document all relevant evidence. Screenshots of listings, booking information, witness statements from neighbours and CCTV footage from communal areas can all strengthen a Section 8 claim. Where informal steps fail, serving a Section 8 notice for breach of contract or nuisance may be necessary.

Council and social housing tenants

Short-term letting is typically prohibited in council and social housing. Enforcement is often strict. In one notable case, Westminster City Council fined a tenant £100,000 and secured their eviction for repeatedly listing the property on Airbnb. This demonstrates the serious consequences tenants can face for unauthorised subletting in social housing.

Final thoughts

Airbnb remains an attractive income opportunity, but the legal and contractual barriers for tenants are significant. Without clear written consent from the landlord and compliance with planning, insurance, mortgage and tax requirements, tenants risk eviction, financial penalties and long-term legal consequences. Both landlords and tenants should seek specialist advice before engaging in short-term letting to ensure they fully understand the risks involved.

Call Mike Hansom on 01225 462871 or complete the Contact Form below.