How to start a holiday let (Airbnb) in the UK
If you have found yourself Googling how to start an Airbnb in the UK, you are in the right place. This is the stage where most people feel excited, slightly overwhelmed and then understandably nervous they are about to spend money in the wrong places.
Going in fully informed and getting things off to the right start can save you so much time and cost.
Holiday lets have changed my life, no two ways about it. They can be a brilliant income stream, a lifestyle win, a way to make use of space you already own, or a proper business that grows over time. They can also become a poor investment if you do not make the early decisions with clarity.
It’s worth pointing out that, while holiday letting is without doubt the easiest money I’ve ever earned, that’s because it suits my lifestyle and I’ve designed it to work for me. It is a big commitment. The good news is that almost every hurdle has a solution. The trap is that there are lots of sensible options and it is hard to see which ones will make life harder down the line and which will be the wins.
This post will help you get started properly, whether you plan to use Airbnb for bookings at first or you want to move towards more direct bookings over time.
What kind of business are you starting? What is the space?
Before you buy anything or decorate anything, get clear on what you are offering, because the set up and the workload look very different depending on the type. Are you letting rooms in your own home (home share), a space adjoined to your home or in your garden, your own home when you are away, or a place entirely separate?
None of the following questions have right or wrong answers, but the combination of answers matters. It is much easier to adjust direction here than to unwind a decision once money and emotion are involved.
🔹If it is a home share, which spaces will guests use, will bathrooms be shared, will you feel conscious of noise and how will parking work?
🔹If it is an annexe or garden space, can guests have their own outside space, how will heating and Wi-Fi work and will you be able to hear each other?
🔹If it is a separate home, how will changeovers and maintenance be handled, how will guests check in and how will you make sure the neighbours are okay?
🔹If it is your own home when you are away, where will you store your things, how will you feel about guests being among them and how much investment is needed to bring it up to scratch (especially for fire regs and furnishings)?
What you want this business to feel like?
So much of the advice I give starts or ends with ‘How does it feel?’. This is key with everything from bedding choices to pricing to accepting bookings.
If you find cleaning therapeutic, do it. If you are going to retch at the sight of someone else’s hair in the plug hole, budget for a cleaner. If you love meeting new people, welcome guests at check in. If the idea of waving and smiling at 8pm on a Friday makes you want to hide, get a lock box.
You’ll often come across negativity about holiday letting from owner groups on Facebook and the like, and I believe this is where a lot of the problem lies. A business is only as good as the lifestyle it affords you, and that means both financially and in terms of commitment and time. Thinking this all through is key.
Setting up your place
When it comes to the physical set up, you need to have your ideal guest and their needs in mind. This does not preclude the full range of guests from visiting, but it gives you focus when you are planning the space and thinking about how it will be used.
If you are going to take dogs, for example, your furnishings will need to reflect that. If you are aiming for families, you will think differently about dining, storage and outdoor space. If you are aiming for business guests, you will care a lot about Wi-Fi and a dedicated work space.
Consider the ‘vibe’ and the customer you want to attract. Decide if your place is luxury, budget, or somewhere in between, then base your decisions about bedding, crockery and everything else on that.
If you want help getting this right, my Step 2 guide goes through setting up your place properly, so you know exactly what to get and why, without overbuying or creating more work than you need.
Selling your space
The vast majority of hosts start on Airbnb and branch out from there. A huge part of Airbnb success in the UK comes down to whether your listing makes the right guest think, yes. That’s us.
Your photos, your first five hundred characters, your title and your clarity matter far more than most people realise.
When you are ready for that stage, Step 3 is where it all comes together and Step 4 is where you’ll learn how to use pricing and calendar on Airbnb.
FAQ: starting an Airbnb in the UK
How do I start an Airbnb in the UK?
Start with your reasoning behind it and how you plan for practicalities. Get the legalities in order before you get caught up in things - this can really make people come unstuck if they don’t know what the expectations are.
Key areas to check early:
Fire safety regulations
Insurance (buildings, contents and public liability) and mortgage terms (not legal, but very important!)
Planning and licensing requirements in your area
Council tax and business rates
All of this is shared with info and links in my Step 1 guide, accessible for free here www.kaygibbs.com/freebie.
Once that’s sorted, you can start to think about setting up the space with your ideal guest in mind.
Do I need a licence or planning permission for Airbnb in the UK?
Licensing rules are changing and vary across the UK. Scotland and Wales already have requirements, and England is moving in that direction. Always check with your local council for the most accurate guidance; it’s surprising how much they differ.
Can I let my home on Airbnb while I live there?
Yes. Letting part of your home while you are living there is very common and can work brilliantly, but it does require some thought. Consider which spaces you will include in your offer, whether guests will have access to the kitchen, whether bathrooms will be shared and how you will feel about noise, both from you and from them. Think about how the driveway and garden will work, and whether everyone in the household can keep the spaces where guests will be up to standard. This was actually one of our favourite things about home sharing, we kept our home beautifully as a result.
It is also worth looking into the Rent a Room Scheme, which can be a massive tax win if it applies to your set up. As always, the key question is how does it feel? If you love hosting people in your own home, it can be a joy. If you find it draining, there are other ways to do holiday letting that might suit you better.
What tax do I pay on Airbnb income in the UK?
Your income from letting your space will need to be reported to HMRC through your annual tax return (and, if you list on Airbnb or Booking.com, for example, they will be reporting your income too.
It will be taxed alongside what you already receive. Holiday letting income is taxed as property income and needs to be declared via your tax return. The amount you pay depends on your total income and allowable expenses.
It’s worth looking at the Rent a Room scheme if you are letting part of your own home; this can be a huge tax win.
An accountant can help you set this up properly from the start. I recommend (and use) Helen from Maple Tree. Mention me to receive 5% off ongoing tax work.
Do I need to register for VAT for my holiday let?
Yes, if your turnover (not profit) exceeds the VAT threshold in any rolling 12 month period. If you have other sole trader income (eg your main business or a side hustle), those totals may be combined.
Turnover includes the fees you pay on platforms like Airbnb or Booking.com, so bear that in mind when calculating your rolling turnover.
What should I charge per night on Airbnb in my area? How much can I earn from an Airbnb in the UK?
Your nightly rate is dependent on an infinite number of factors, but you can get a reasonable idea by finding similar offers to yours. Start by looking for two types of comparison points: those local to you and as similar as possible to your offer, and those elsewhere that are near identical in style, size and location type (for example, a different seaside town but still a seaside town). Use Airbnb to search, but also do some cruising on Google Maps locally.
Look at how booked up places are, how long their minimum stays are and how they structure their pricing. Can they sell whole weeks at a time, or are people mostly looking for weekends where you are? If you want to be especially cunning, you can even post in a Facebook group and request something similar to what you are offering, then see what potential hosts want to charge you.
What are the fire safety rules for short term lets in the UK ? Is holiday letting regulated differently than long-term renting?
The fire regulations are a big step up from normal building regs or long term letting and are likely to be your biggest consideration right at the begining. Don’t fall foul of picking up a paintbrush until you have them sorted. Some of the requirements may mean some delay and expense.
There are lots of other pieces of legislation to be aware of, but it’s the fire regs that need to be tackled first.
Want the full step-by-step?
My Step 1 guide is free and it is designed to stop you making the classic early mistakes. You can access it now here:
If you want to go deeper, you can explore the full guide series here.
Step 2: Setting up your place
Step 3: Creating your listing
Step 4: Pricing and calendar on Airbnb
Step 5: Welcoming Guests
Step 6: Troubleshooting
Maximising Bookings with Facebook
Photography and Staging
The Host Growth Audit (free)
Your next step
If you are reading this and thinking, I want someone to sense-check my decisions before I sink time and money into the wrong direction, that is exactly what my Strategy Calls are for. A 45 minute jam-packed session where you choose your focus and I set you on the right path, whatever your starting point.
You can read more and book in (though I often have very limited slots) here.