Leasehold Restrictions in London: What Landlords and Airbnb Hosts Need to Know in 2026

Owning a leasehold property in London does not necessarily mean you are free to rent it out however you choose.

This is particularly important for owners considering Airbnb, serviced accommodation or other short-term letting arrangements. Even where short-term letting is permitted under London’s planning rules, the terms of your lease may separately restrict or prohibit it.

For London property owners, there are therefore several different layers of regulation to consider: the lease, planning rules, mortgage conditions, insurance requirements and building regulations.

This guide explains the key leasehold restrictions London landlords and Airbnb hosts should understand in 2026.

What Is a Leasehold Property?

With a leasehold property, you own the right to occupy the property for the remaining term of the lease, rather than owning the land and building outright.

This is extremely common with London flats.

The building itself will typically have a freeholder, while management responsibilities may sit with the freeholder, a residents’ management company or a professional managing agent.

Your lease is effectively a contract governing what you can and cannot do with the property.

This can include restrictions covering:

• subletting;
• short-term or holiday accommodation;
• business use;
• alterations;
• pets;
• noise and nuisance;
• use of communal areas; and
• the way in which the property may be occupied.

For landlords, the provisions relating to subletting and permitted use are particularly important.

Can You Rent Out a Leasehold Property in London?

Usually, but not always.

Whether you can rent out your property depends primarily on the wording of your lease.

Some leases permit subletting without requiring additional consent. Others require the leaseholder to obtain consent from the freeholder or managing agent.

There are also leases that prohibit certain types of subletting altogether.

London City Hall advises leaseholders to check their lease before subletting because restrictions can potentially apply both to conventional residential tenancies and short-term rentals through platforms such as Airbnb.

This means that owning an investment property does not automatically give you the right to operate it as a rental property.

Can You Airbnb a Leasehold Flat?

This is where the situation becomes more complicated.

A lease might allow conventional residential subletting while effectively prohibiting Airbnb or holiday-style accommodation.

Common lease clauses include wording requiring the property:

• to be used only as a private residence;
• to be occupied as a private dwelling;
• not to be used for any trade or business;
• not to cause nuisance or disturbance to other residents;
• not to be sublet without the freeholder’s consent; or
• not to be occupied for periods shorter than a specified minimum term.

The exact wording matters.

A clause allowing you to rent your property to a residential tenant does not necessarily mean that you can rent it repeatedly to guests staying for several nights.

Why Short-Term Lets Can Be Different

Traditional residential letting normally involves a tenant occupying the property as their home.

Short-term accommodation operates differently. Guests may stay for only a few nights before another group arrives.

That difference can become important when interpreting lease clauses requiring a property to be used as a private residence.

As a result, leaseholders considering Airbnb management should have their lease checked specifically for short-term letting restrictions, rather than simply establishing whether “subletting” is permitted.

Common Lease Restrictions Affecting Airbnb Properties

1. Private Residence Clauses

One of the most important clauses to look for is a requirement that the property is used only as a private residence or private dwelling.

Depending on the precise wording of the lease and circumstances, repeated short stays may potentially conflict with this requirement.

2. Minimum Letting Periods

Some leases specifically state that the property cannot be rented for periods shorter than, for example:

• three months;
• six months; or
• another minimum period.

Where such a clause exists, nightly or weekly Airbnb bookings could constitute a breach of the lease.

3. Consent to Sublet

Some leases allow subletting but require prior consent.

You may therefore need to notify or obtain permission from:

• the freeholder;
• the head lessor;
• the management company; or
• the managing agent.

There may also be an administration fee associated with registering a tenancy or obtaining consent.

4. Business Use Restrictions

Leases commonly prohibit operating a business from residential premises.

Whether a particular short-term letting arrangement breaches such a provision depends on the wording of the lease and how the property is being operated.

It is therefore worth obtaining professional advice where the lease contains a business-use restriction.

5. Nuisance Clauses

Even if short-term letting itself is not expressly prohibited, leases almost always contain provisions preventing nuisance or unreasonable disturbance.

Problems can arise from:

• parties;
• excessive noise;
• guests arriving late at night;
• misuse of communal areas;
• rubbish disposal;
• smoking;
• security issues; and
• repeated complaints from neighbours.

Professional guest vetting and active property management can therefore be particularly important in leasehold buildings.

Lease Restrictions and London’s 90-Day Airbnb Rule Are Different

One of the most common misunderstandings among London property owners is that complying with the 90-day rule automatically makes short-term letting legal.

It does not.

Under London’s short-term letting rules, a residential property can generally be used as temporary sleeping accommodation for up to 90 nights in a calendar year without obtaining planning permission, provided the relevant conditions are satisfied.

The person providing the accommodation must also be liable for Council Tax at the property. Letting beyond 90 nights normally requires planning permission for the change of use.

But this is a planning rule.

Your lease is a separate contractual issue.

Therefore:

Planning rules may allow short-term letting → your lease may still prohibit it.

Equally:

Your lease may allow short-term letting → planning rules may still restrict it.

Both need to be checked.

What Happens If You Breach Your Lease?

Ignoring lease restrictions can have serious consequences.

The freeholder or management company may initially contact the leaseholder asking for the activity to stop.

If the issue continues, enforcement action could potentially follow.

Depending on the circumstances and wording of the lease, consequences can include:

• formal breach notices;
• legal costs;
• injunction proceedings;
• demands to stop short-term letting; and
• in serious cases, proceedings relating to forfeiture of the lease.

Forfeiture is a significant legal process and does not mean that a freeholder can simply take possession of a property immediately because an Airbnb guest stayed there.

Nevertheless, lease breaches should not be treated lightly.

What If Other Flats in the Building Are Already on Airbnb?

This does not necessarily mean that you can do the same.

Other owners may:

• have different leases;
• have obtained consent;
• be operating without permission; or
• simply not yet have faced enforcement.

You should therefore make decisions based on your own lease and permissions, rather than the activities of neighbouring properties.

Do You Need Freeholder Permission to Rent Your Property?

It depends on your lease.

Broadly, a lease may:

Allow subletting

You may be able to rent the property without specific permission, subject to the other terms of the lease.

Allow subletting with consent

You will need to follow the procedure specified in the lease.

Restrict particular types of letting

Longer residential lets may be permitted while short-term or holiday accommodation is restricted.

Prohibit subletting

In this situation, renting the property may constitute a breach unless the lease is varied or appropriate consent can be obtained.

London City Hall recommends checking with the landlord/freeholder before subletting and also checking the position with the mortgage provider and insurer.

What About Medium-Term Letting?

Medium-term accommodation can sometimes provide an alternative where nightly Airbnb-style stays are problematic.

For example, a property might be marketed towards:

• corporate tenants;
• relocating professionals;
• visiting academics;
• project workers;
• families between homes; or
• international visitors requiring accommodation for several months.

However, medium-term letting is not automatically exempt from lease restrictions.

If your lease specifies a minimum tenancy length of six months, for example, a three-month corporate booking could still breach the lease.

The individual lease must always be checked.

Leasehold Restrictions and Long-Term Letting in 2026

The rental landscape in England changed significantly in 2026.

From 1 May 2026, the Renters’ Rights Act reforms abolished assured shorthold tenancies in the private rented sector. Most existing ASTs automatically became assured periodic tenancies, while new qualifying private residential tenancies are generally created as assured periodic tenancies rather than fixed-term ASTs.

This is important when reviewing older leases.

A lease may contain terminology referring specifically to ASTs or older tenancy arrangements. Owners should avoid assuming that historic wording automatically determines how the clause operates under the new tenancy regime.

Where there is uncertainty, specialist legal advice may be appropriate.

Don’t Forget Your Mortgage

Your lease is not the only contract that matters.

If the property is mortgaged, your mortgage conditions may impose separate restrictions on letting.

For example, you may have:

• a residential mortgage;
• a buy-to-let mortgage; or
• another lending product with specific occupancy conditions.

Permission from your freeholder does not override your mortgage conditions.

Before changing how a property is occupied, landlords should therefore check the terms of their mortgage and, where necessary, speak with their lender.

Insurance Can Also Restrict Short-Term Letting

Standard residential or landlord insurance may not necessarily cover Airbnb-style accommodation.

Frequent guest turnover can create different risks from conventional residential letting.

London City Hall specifically advises leaseholders to check that appropriate insurance is in place because subletting may affect existing insurance cover.

Property owners should consider both:

Their own insurance policy

and

The building’s block insurance policy.

The latter can be particularly important in leasehold apartment buildings.

A Simple Checklist Before Listing a Leasehold Property on Airbnb

Before advertising a leasehold London property for short-term accommodation:

1. Read your lease

Search for terms including “subletting”, “underletting”, “private residence”, “private dwelling”, “business use”, “holiday letting”, “temporary accommodation” and minimum tenancy periods.

2. Check whether consent is required

Establish whether permission is needed from the freeholder or managing agent.

3. Check your mortgage

Make sure your proposed letting arrangement complies with your lender’s conditions.

4. Check your insurance

Confirm that both your property insurance and relevant building insurance allow the proposed use.

5. Check planning restrictions

Remember that London’s 90-night rule operates independently from your lease. (⁠London City Hall)

6. Check any building-specific rules

Some developments have additional regulations governing guests, keys, access, concierge services and communal areas.

7. Get professional advice if the lease is unclear

A few lines of legal wording can determine whether short-term letting is permitted, so obtaining specialist advice can be worthwhile before committing to an Airbnb strategy.

Can StayinLondon Manage a Leasehold Property?

Yes, subject to the property being suitable for the proposed letting strategy and the necessary permissions being in place.

At StayinLondon, we manage properties across London using short-term, medium-term and longer-term letting strategies.

Before deciding how a property should be marketed, owners should consider not only potential nightly rates and occupancy but also the legal and contractual restrictions affecting the property.

Where short-term letting is restricted, an alternative letting strategy may sometimes be more appropriate.

For example, depending on the lease and other applicable rules, an owner may be better suited to a medium-term corporate letting strategy or conventional residential letting.

The objective should be to identify the highest-performing compliant strategy, rather than simply placing every property onto Airbnb.

Frequently Asked Questions

Can a freeholder stop me using Airbnb?

Potentially, yes. If your lease prohibits or restricts short-term letting, the freeholder may be able to enforce the relevant lease provisions.

Does the London 90-day rule override my lease?

No. The 90-day rule is a planning restriction. Your lease is a separate contractual agreement. You need to comply with both. (⁠London City Hall)

Can I Airbnb my flat if the lease allows subletting?

Not necessarily. Permission to sublet does not automatically mean that short-term or holiday letting is permitted. Other clauses in the lease may restrict the way the property can be occupied.

Can I rent my leasehold flat long-term?

Often yes, but you need to check your lease. Some leases require the freeholder’s consent or impose conditions on subletting.

Do I need permission from my mortgage lender?

Possibly. Your mortgage conditions may restrict letting or short-term accommodation even if your lease permits it.

Can I use medium-term letting if Airbnb is prohibited?

Possibly, but it depends on the wording of your lease. A lease may specify minimum letting periods or contain other occupancy restrictions.

What happens if I Airbnb my flat without freeholder permission?

If consent is required and you operate without it, you could be in breach of your lease. The freeholder may take steps to enforce the lease and require the short-term letting activity to stop.

Can a property management company check my lease?

A property management company can help identify practical issues relevant to your letting strategy, but interpretation of ambiguous or disputed lease clauses should be referred to an appropriately qualified solicitor.

Final Thoughts

Leasehold restrictions are one of the most important checks London property owners should make before starting an Airbnb or short-term letting business.

The key point is that there is no single rule determining whether a leasehold property can be used for Airbnb.

You may need to satisfy several separate requirements:

Lease + Freeholder Permission + Planning Rules + Mortgage Conditions + Insurance + Building Regulations

Compliance with one does not automatically mean compliance with the others.

For London landlords, this makes reviewing the property before choosing a letting strategy particularly important.

At StayinLondon, we help property owners assess the commercial potential of their properties and choose between short-term, medium-term and longer-term management strategies based on the characteristics of the property and the restrictions that apply.

If you’re considering renting out a leasehold property in London, understanding these restrictions before going live can help avoid expensive problems later.