Subletting and short-term lets

In this guide, “subletting” covers both:

• long-term lets: for example, 6 to 12 months or more
• short-term lets: for example, holiday lets, Airbnb-style stays or stays under 6 months

Your lease can have different rules for each type, so it’s important to check your lease carefully.

Your lease should tell you what you can and cannot do with your property.

It might:

• ban (“prohibit”) subletting
• allow subletting
• allow subletting but only with the landlord’s written permission
• allow subletting but only the whole of the property
• allow subletting but subject to conditions the landlord can specify in a licence

Usually, subletting a shared ownership property is not allowed (but taking in a lodger might be). To make sure, check your lease because exceptions are sometimes made.

How to get a copy of your lease

Common lease restrictions

Even if subletting is allowed, other clauses can prevent (“restrict”) certain types of subletting.

Even if long-term subletting is allowed, many leases ban short-term lets like holiday lets and services like Airbnb.

Common clauses that effectively ban these include:

• “private residence only” clauses
• “residential use only, not business use” clauses
• minimum term clauses - for example, no lets of less than 6 months

Local council rules

If you are offering short-term lets, many local councils also require you to:

• register with them
• meet certain safety standards
• get planning consent for change of use

Check with your local council before subletting.

90-day rule

In Greater London you need planning permission if your property is used for short-term lets for 90 nights or more in total between 1 January and 31 December.

Your mortgage and insurance might not allow long-term and or short-term lets. Always check and get written permission if you need it.

Mortgage

Your mortgage agreement will usually tell you:

• if you are allowed to sublet
• if you can sublet the whole or only part of your property
• if you need your mortgage provider’s written permission to sublet (you usually do)

Speak to your mortgage provider to find out how to get their written permission.

If you need to change to a mortgage that allows subletting it is best to get professional financial advice on how to remortgage.

Building insurance

For leasehold flats, the freeholder or managing agent normally arranges building insurance and you pay for it through your service charge.

Changing how you use the flat (including for long-term sublets or short stays) can affect this building insurance.

Check your lease, as it might require you to:

• tell the freeholder about any change in use
• follow any conditions to keep the building insurance valid - for example not to leave the property unoccupied for a certain number of days

Home contents insurance

Check your home contents insurance.

It might require you to:

• tell your insurance provider before subletting
• update or change your policy to cover subletting

If your lease says you need written permission (often called a “license” or “consent”) to sublet, you must get it before advertising or subletting the property.

You might also need written permission each time you sublet. For example, if you have a clause that says, “consent by the landlord to one assignment/subletting shall not be deemed to be consent to any subsequent one”.

How to ask for permission

Put your request in writing, date it and keep copies of all letters.

Do not rely on verbal consent - get it in writing so you have proof in case of disagreements later.

Your landlord might ask for things like:

• proposed tenancy agreement
• confirmation from your mortgage lender
• proof of updated insurance

Under the Landlord and Tenant Act 1988, your landlord can only ask for information that they reasonably need in order to decide whether to give permission.

If consent is refused or delayed

If your lease allows subletting with the landlord’s consent, your landlord must:

• respond to a request for consent in writing within a reasonable time
• give consent unless there is a reasonable reason to refuse
• state their reasons for refusing

There is no set definition of a reasonable timeframe because it depends on the circumstances. However, it will usually be days or weeks rather than months.

If your lease bans subletting, the landlord does not have to consider your request and does not have to respond. You would need to try and get the clause banning subletting changed.

Unauthorised subletting

If permission is needed and you sublet without it, you could be in breach of your lease. Unauthorised subletting can have serious consequences especially for leasehold flats.

It’s best to get professional advice on the next steps, such as applying for retrospective consent and working with the landlord to resolve any issues.

If the lease allows, the landlord can charge a fee for giving consent or issuing a licence to sublet.

These fees count as “administration charges”. This means they must be reasonable and any demand for money must include a summary of your rights (for example, to dispute the charge or ask for a written breakdown of the costs).

You are legally responsible for ensuring your tenants follow the rules in your lease. These are likely to include:

• not causing nuisance or annoyance
• not disturbing neighbours
• not causing damage to the building
• not carrying out illegal activities

If your tenants break the rules, you are treated as being in breach of the lease.

For serious or repeated breaches your landlord might take legal action including, in severe cases, taking steps to end your lease (forfeiture).