Short letting: do you need your lender's permission?

Your mortgage

The type of mortgage you have decides what you need to ask for.

• Residential mortgage. It is lent on the basis that you live in the property. Letting it out, short or long, usually needs your lender's consent to let, and some lenders will not agree to short lets.
• Buy-to-let mortgage. Many are designed for longer lets to tenants. Check whether your terms allow short-term or holiday letting before you switch.
• Holiday let mortgage. Made for properties let to short-stay guests. Lenders usually assess these on expected holiday letting income.
• HMO or company let. Letting rooms to sharers, or letting the whole property to a company on guaranteed rent, often needs a specific product or your lender's agreement.

Ask your lender, or a mortgage broker, in writing. Tell them exactly how the property will be used: short stays booked through Airbnb and similar sites, run by a management company. Keep their reply.

Your insurance

Standard home insurance is not designed for paying guests. For self-catering lets, GOV.UK advises holding dedicated holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting.

Booking platforms offer their own host protection. Check what it does and does not cover: it is not a replacement for your own policy.

Leasehold flats

Many leases restrict how a flat can be used, for example by requiring it to be a private residence, banning business use, or setting a minimum length for any let. Read your lease, and ask the freeholder or managing agent if it is unclear. Breaking the lease can lead to action by the freeholder.

Licensing, planning and registration

Consent from your lender and insurer is only part of the picture. In Wales, every short let must be registered by 31 March 2027: see registering a short let in Wales. In Bristol, read the rules for short letting in Bristol. For shared houses, see guaranteed rent and HMO rules.

A checklist before you let

• Written consent from your mortgage lender, or a mortgage that allows short lets.
• Holiday let insurance with public liability, and buildings and contents cover suitable for short-term letting.
• Your lease checked, and the freeholder's agreement if needed.
• Registration, licensing and planning checked for your area.
• Fire risk assessment, gas safety check and alarms in place.

Where EKLiving fits in

We manage Airbnbs across South Wales and Bristol, and offer guaranteed rent on HMOs. On a free call, we will tell you honestly whether a short let, a long let or guaranteed rent suits your property, and talk you through what to ask your lender, insurer and freeholder.

This guide is general information, not financial or legal advice. Speak to your lender, a mortgage broker or an insurer about your own circumstances.