Can you short-let a leasehold flat? What your lease really says

Your lease decides whether you can short-let your flat, not the council and not Airbnb. Many leases never mention Airbnb, holiday lets or short stays, yet still ban them through a single line about using the flat as a "private residence". Here's how to read your lease before you take a booking.

Why does your lease matter so much?

If you own a leasehold flat, you own the right to live in it for a set number of years, on the terms in the lease. Break those terms and the freeholder can take action against you. In serious cases, that can put the lease itself at risk. That's why official guidance lists the freeholder, if your property is leasehold among the people you may need permission from before short letting.

What is the "Airbnb ruling"?

In Nemcova v Fairfield Rents in 2016, a flat owner's lease said the flat could only be used as a private residence. She let it on short stays through Airbnb. The Upper Tribunal decided that this broke the lease. Local Government Lawyer summarises the decision: the owner had breached a covenant in her lease not to use her flat other than as a private residence by granting a series of short-term lettings.

The key point was permanence. Gatehouse Chambers quotes the tribunal: to be someone's private residence, "there must be a degree of permanence going beyond being there for a weekend or a few nights in the week". Guests staying a few nights don't meet that test.

The case is still the leading authority on short lets in leasehold flats, and it's why many freeholders now act against short lets.

Which lease clauses should you look for?

Read the whole lease, including the schedules at the back, which is where the rules usually sit. Look for:

• "Private residence" or "private dwelling". After the Airbnb ruling, this is the clause most likely to rule out short lets.
• Business use. Some leases ban any trade or business being run from the flat.
• Letting or subletting. Some ban letting altogether, or require the freeholder's consent.
• Minimum letting periods. Mortgage broker Fox Davidson notes that many leases expressly prohibit any letting on a term of less than six months.
• Nuisance and annoyance. Noise, parties and strangers in shared areas can breach these clauses, even where letting is allowed.
• Key safes and alterations. Some leases ban fixing anything to the outside of the building.

What if your lease doesn't mention short lets?

That doesn't mean you're allowed. A lease that says nothing about short lets can still ban them through a private residence clause, as in the Airbnb ruling. Equally, some leases genuinely allow them. The only way to know is to read the exact wording, and if in doubt, ask a solicitor.

Are medium-term stays treated differently?

The Airbnb ruling turned on how long guests stayed. Stays of several months, where someone genuinely lives in the flat as their home, may be treated differently from weekend stays under a private residence clause. That depends on the exact lease and the facts, so take advice before relying on it.

How do you get permission?

1. Get a copy of your lease if you don't have one. You can buy an official copy from HM Land Registry.
2. Write to the freeholder or managing agent, explaining what you want to do.
3. Ask for any consent in writing, with any conditions, such as house rules, a maximum number of guests or a fee.
4. Tell your lender and insurer, who may also want to see the freeholder's consent. Read Do you need your mortgage lender's consent?

What if the freeholder says no?

If the lease bans short stays and the freeholder won't agree, don't list the flat. Instead, consider medium-term stays, if your lease and a solicitor's advice allow them, or a standard tenancy. Some freeholders will agree to a variation of the lease in return for a fee, though that takes time and legal costs.

What about share of freehold flats?

If you own a share of the freehold with the other flat owners, you still have a lease, and its terms still apply. The difference is that the freeholders are you and your neighbours, so any consent, or change to the lease, needs their agreement. Talk to them early. Neighbours who feel included are far less likely to object later.

Could you already be in breach?

• Your lease says the flat must be used as a private residence only, and you're taking weekend guests.
• Your lease requires consent for letting, and you haven't asked.
• You've had complaints from neighbours or the managing agent.

If any of these apply, stop taking new bookings and get advice before the freeholder acts.

What about flats in Brighton and Hove?

Much of Brighton's housing is flats, from converted Regency and Victorian houses in Hove and Kemptown to newer blocks at the Marina. Converted houses often have leases written decades ago, with private residence clauses. Newer blocks often have detailed rules on letting and key safes. Either way, the lease comes first.

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This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.