The Boom

Serviced accommodation property in the UK is booming — from short lets in Bristol to serviced apartments and property in London, property owners are turning to this flexible rental model for higher returns.

Serviced accommodation rules

But with growing popularity comes tighter property serviced accommodation rules, licensing laws, and compliance requirements across the country.

Understanding the regulations

Whether you’re considering a rent-to-rent serviced accommodation property (R2R SA) model, or planning to manage your own property, understanding the legal framework is essential.

What we will cover

In this post, we’ll break down the UK serviced accommodation regulations, how to get licensed, common mistakes in Serviced accommodation property to avoid, and where to find the best serviced accommodation course to help you stay compliant and profitable.

What Is Serviced Accommodation UK?

Serviced accommodation (also called service accommodation or serviced apartments) refers to fully furnished short-term rentals property that provide amenities similar to hotels — such as cleaning, Wi-Fi, and utilities — but with the comfort and space of a home.

It’s a property let out on a short-term basis, often through platforms like Airbnb, Booking.com, or direct corporate lets. It’s ideal for contractors, tourists, and professionals needing stays from a few days to several months.

Is Airbnb serviced accommodation ?

Many property investors ask: “Is Airbnb serviced accommodation?”

Yes — Airbnb properties fall under the same short-term rental compliance rules as serviced accommodation.

Serviced Accommodation 90 day rules for property owners

The 90-day rule is a crucial regulation that governs serviced accommodation in many regions. This rule stipulates that a property can only be used for short-term rentals for a maximum of 90 days per year. After this threshold is reached, the property must be used for long-term residential purposes.

Reasoning for business and property owners

The rationale behind the 90-day rule is to maintain a balance between the availability of long-term housing and the demand for short-term accommodations.

By limiting the number of days a property can be used for serviced accommodation, the rule aims to ensure that a sufficient number of residential properties remain available for long-term renters and homebuyers.

This helps to prevent the housing market from being dominated by short-term rentals, which can drive up prices and reduce the supply of affordable housing options.

It's essential for property owners and managers to be aware of the 90-day rule and to strictly adhere to it.

Failure to comply with this regulation can result in:

Hefty fines,
Legal issues,
Potential revocation of licenses or permits.

Locations in the UK Where the 90 day rule Applies

Greater London.
Edinburough.

Property owners should keep detailed records of their short-term rental activity and be prepared to provide documentation to the relevant authorities if required. By understanding and following the 90-day rule.

Serviced accommodation providers can ensure they operate within the legal framework and avoid any potential complications.

Other Serviced Accommodation Licence & Legal Requirements

Running a compliant serviced apartment means meeting several legal requirements for accommodation providers.

Here are the key serviced accommodation requirements to operate safely and legally:

Health & Safety Compliance

Gas Safety Certificate (renew yearly)
EICR electrical check (every 5 years)
Smoke and CO alarms on all floors
Fire risk assessment and evacuation plan
PAT testing for appliances

Insurance access

Standard landlord insurance and guidance doesn’t cover short lets. You’ll need:

Serviced accommodation insurance
Public liability cover
Loss of income protection

Data & Guest Records

Under UK hotels law, you must record details of non-UK guests (passport number, nationality, etc.) and store them securely for 12 months.

Tax & Business Rates

If your property qualifies as a Furnished Holiday Let, you can access tax advantages like:

Mortgage interest relief.
Capital allowances.
Business rate relief (if used over 140 days annually.)

Serviced Accommodation Courses UK

Serviced Accommodation Course UK

Whether you’re new to property or scaling up, the right serviced accommodation course can help you avoid costly mistakes.

Why take a serviced accommodation management course?

A high-quality serviced accommodation course UK teaches you:

The latest serviced accommodation rules UK
How to get a serviced accommodation licence
Setting up an R2R serviced accommodation business model
Understanding Airbnb legal regulations
Managing short let regulations management efficiently
Maximising profits while staying compliant

Many courses cover rent to serviced accommodation setups and short-term rental compliance — vital knowledge before launching.

Looking for the best serviced accommodation training? Choose one that includes legal, operational, and marketing modules plus live mentoring.

Other serviced accommodation business rules

Licensing and registration:

In many regions, serviced accommodation providers are required to obtain a specific license or registration to operate legally, this however does not apply to landlords in England but it could happen in the future and does apply for landlords in Scotland.

This may involve obtaining a form of:

Business license.
Short-term rental permit.
A hospitality license, depending on the local regulations.

Some other important things to note:

Waste Collection - If the local council finds you to be doing Airbnb or serviced accommodation in your property, they will refuse bin collection, you will need to find a local commercial waste company and should not cost much more then £30-£60 PM.
Business Rates / Council Tax - You may in the future need to change from council tax to business rates when using your property as serviced accommodation, but currently this is not a rule more a guideline.
Mortgages - You will need a holiday let mortgage, residential or buy to let mortgages will not be compliant for serviced accommodation and could be considered mortgage fraud.

Health and safety standards

Serviced accommodation providers must adhere to strict health and safety regulations to ensure the well-being of their guests.

Currently this includes requirements for:

Fire safety - Fire doors, fire extinguishers & smoke alarms need to be in the property.

Emergency procedures - Mostly used in the event of a fire, have a written out access plan and keep it on the wall of a communal area.

Health & Safety Equipment - A first aid kit will do.

Planning and Zoning

The use of a property for serviced accommodation may be subject to planning and zoning regulations, currently this does not apply in England but it is likely to happen in the future.

Property owners must ensure that the intended use of their property is in compliance with local land-use and zoning laws, which may restrict the number of days a property can be used for short-term rentals or the type of accommodation that can be offered.

Guest registration and record-keeping

Many regions require serviced accommodation providers to maintain detailed records of their guests under UK lodging regulations, including their personal information and the duration of their stay. This information may need to be made available to the relevant authorities upon request, do not worry if this feels like a lot of paper work, all channel management software platforms which are essential in running a serviced accommodation business will keep a record for you and store it for you to access at anytime, it will also have all the information you will need.

Serviced Accommodation Tax & VAT

Taxation and value-added tax (VAT) are crucial considerations for serviced accommodation providers. The tax implications can vary significantly depending on the jurisdiction, the type of property, and the specific services offered.

VAT

The value-added tax (VAT) is an important consideration for serviced accommodation providers. In many countries, the provision of short-term accommodation is subject to VAT but if your accountant can do it, you can apply for TOMS, this will make you pay VAT on profit vs turnover which is a massive help in profitability in your serviced accommodation property.

Important things to note:

Not every accountant does TOMS so you need to find one that can, we recommend Riverview portfolio.
TOMS accountants will cost a lot more than regular accountants both in terms of hourly charge and how many hours they do on your books.
VAT is not applicable for guests staying over 28 days, this is because guests staying over this length of time are classed as “long term” and tenant like, so they do not need to have VAT charged to them.
As much as it is important to do this from the beginning, you will not need to become VAT registered until you exceed £90,000 off revenue.

TOMS

You should use TOMS if you buy in and resell accommodation, passenger transport, car hire, trips/excursions, guides or airport lounges as principal to a consumer. TOMS is better than registering for VAT in every country in which you operate.

TOMS is a year-end tax calculation. Think of it like a corporation tax computation. It makes you pay UK VAT on the margin on EU destinations. You cannot reclaim UK or foreign input VAT on the corresponding costs of sale so the overall effect is that you pay VAT on the selling price of EU accommodation.

Important things to note:

HMRC does not like R2R companies or a serviced accommodation business using TOMS, but currently you can apply, this has gone to court and was ruled that serviced accommodation companies can use this rule, however HMRC are contesting it.
TOMS is quite complicated for a business as most accountants will say, to better explain read this article on the government website.

Property Tax 2025

Serviced accommodation companies in 2025 will pay the normal rate for corporation tax for a business which currently stands at 21% of gross profit, some items you can claim back as expenses:

Rent/mortgage costs.
Utilities.
Furniture.
Interior design.
Kitchen & Bathroom appliances.
Fuel
Speak to an accountant for more information on this and it is important to get rules for your year, this is for 2025 rules for short term lets and business owners.

FAQ

Serviced accommodation refers to a fully furnished property available for short-term stays, offering amenities such as cleaning, Wi-Fi, and utilities included. It bridges the gap between a hotel and a rental home — ideal for business travellers, contractors, and holiday guests.
In most cases, standard residential properties (C3 use class) can be used for short-term lets.
However, in some council areas — especially in London, Edinburgh, and tourism-heavy regions — you may need planning permission or to apply for a change of use to C1 (hotel/guesthouse).
In Greater London, short-term letting is restricted to 90 nights per calendar year unless permission is granted.
Licensing depends on your local council:
In Scotland, all short-term lets require a Short-Term Let Licence under 2024 regulations.
In Wales, registration and potential licensing requirements are being introduced in stages.
In England, licensing is not yet national but may be required locally (e.g. Bath, Westminster).
Always check your local council website before listing your property.
You must meet all health and safety regulations that apply to short-term lets, including:
Gas Safety Certificate (renewed annually)
Electrical Safety Certificate (EICR) every 5 years
PAT testing for electrical appliances
Smoke and carbon monoxide alarms on every floor
Fire safety risk assessment and evacuation plan
If you provide breakfast or food, you may also need to register with your local environmental health office.
Serviced accommodation is treated similarly to small hotels or guesthouses under fire safety law.
You must:
Conduct a fire risk assessment
Install interlinked smoke alarms and fire doors (where necessary.)
Provide emergency lighting and fire extinguishers.
Display fire exit signage.
Larger properties or HMOs (Houses in Multiple Occupation) will need additional measures.
You can classify your property as a Furnished Holiday Let (FHL) if it meets HMRC’s criteria:
Available for letting 210+ days per year.
Let to guests for 105+ days per year.
No single guest stays longer than 31 days for more than half of the total occupancy.
FHL status gives you tax benefits, such as:
Claiming capital allowances on furniture and fittings.
Offset mortgage interest against income.
Potentially lower Capital Gains Tax on sale.
f your property is let for 140 days or more per year, it may be classed as a business and subject to business rates instead of council tax.
However, many small operators qualify for Small Business Rate Relief, which can reduce your bill to £0.
It depends on your lease agreement.
Many leaseholds include a “no short-term letting” or “no commercial use” clause.
Always check your lease terms or consult your freeholder before listing on Airbnb or Booking.com. Breaching your lease can lead to legal action.
Standard landlord insurance is not enough. You’ll need specialist serviced accommodation insurance, which typically covers:
- Public liability.
- Accidental and malicious damage.
- Loss of income.
- Guest injury.
- Legal cover.
Ask your provider if your policy includes Airbnb or short-let cover.

Serviced Accommodation Management & Compliance in Bristol, Cambridge, and Beyond

Cities like Bristol and Cambridge are tightening short-term rental compliance rules.

Short-term rental compliance Bristol: Hosts must ensure they meet planning limits and noise rules.
Cambridge Airbnb regulation: The council monitors tourist lets and requires planning consent for excessive turnover properties.
Airbnb regulations Birmingham UK: Short lets are legal, but landlords must ensure compliance with safety and lease terms.

If managing multiple properties, consider professional serviced accommodation management services like Stayful.co.uk.
They handle guest communication, cleaning, and regulation compliance, freeing you from day-to-day tasks.

Staying Compliant in the UK Serviced Accommodation Market

The UK serviced accommodation sector continues to grow — but regulation is catching up.

From Airbnb laws and regulations to new short-term rental licence schemes, hosts must stay informed and proactive.

The best approach ?

Get trained through a serviced accommodation course UK.
Partner with reliable serviced accommodation management providers.
Stay updated on local and national regulation changes.

By combining compliance, education, and smart management, you can confidently operate in the thriving world of UK serviced accommodation.

Serviced Accommodation Management

Serviced Accommodation Regulations & rules