Airbnb regulations in Cambridge - Host Guide 2023

Welcome to Cambridge, a city steeped in history and home to renowned attractions such as the prestigious University of Cambridge, the iconic King's College Chapel, and the tranquil River Cam. Each year, Cambridge attracts a considerable influx of tourists, drawn to its rich heritage, picturesque landscapes, and vibrant cultural scene. Whether you're a new host or considering venturing into the world of short-term rentals, understanding the regulations in Cambridge is crucial for a successful hosting experience.

Short-Term Rentals Market in Cambridge:

Before delving into the regulations, let's take a quick look at the current state of the short-term rentals market in Cambridge. According to Airdna, a leading provider of vacation rental data, Cambridge boasts a thriving market with attractive opportunities for hosts.

The average room rate remains competitive at £131 per night, ensuring the potential for substantial revenue generation. Additionally, the occupancy rate in Cambridge is 70%, fluctuating between 50-80% through the year. The median monthly revenue for hosts in Cambridge is £1,861. At the time of writing this article, there were 2,411 active rentals in the area.

What are the main policies for Airbnb rentals in Cambridge?

In Cambridge, the main policies for Airbnb rentals revolve around compliance with local laws and regulations. While specific regulations may vary, hosts are generally required to ensure their short-term rental properties meet fire and safety safety standards and adhere to zoning restrictions. Visit the Cambridge City Council website here for details.

Do you need planning permission or any other legal status of the property?

When it comes to planning permission or other legal statuses of the property, you're in luck if you're considering becoming a short-term rental host in Cambridge. Landlords in Cambridge can enjoy relative freedom in terms of short-term rental regulations. Unlike some other cities, there is generally no requirement for planning permission or specific legal status for properties being used as short-term rentals. However, it is still important to check with the local authorities to ensure you comply with any specific regulations that may apply to your property or area.

Does the 90-day rental rule apply to properties in Cambridge?

Unlike London, Cambridge does not currently have a specific 90-day restriction on short-term rentals.

As a result, hosts in Cambridge have more flexibility in terms of the number of days they can rent out their properties as short-term rentals throughout the year. However, it's important to note that while there may not be a specific 90-day rule, hosts should still adhere to other applicable regulations and guidelines in Cambridge, including safety standards, zoning restrictions, and any other local requirements.

What should you know about taxes on short-term property rentals in Cambridge?

Council Tax:

If you're considering providing short-term rental stays in Cambridge, it's important to be aware of the Council Tax regulations. Generally, hosts are required to pay Council Tax on the property, even if they are eligible for a reduction or exemption. However, specific circumstances may warrant exemptions, particularly if you are liable for business rates. It's recommended to check the official website of the local government or consult with a tax professional to understand the specific Council Tax requirements for your short-term rental property in Cambridge.

Tax-Free Allowance:

When renting out accommodation in your primary residence (also known as your permanent residence), you can take advantage of the tax-free allowance. As of the time of writing, you are allowed to earn up to £7,500 annually tax-free from letting out accommodation in your home.

This allowance applies specifically to your primary residence. If you're renting out a second home or property, regular rental income tax rules apply. To obtain detailed information about the tax-free allowance and its application, it is advisable to visit the Government's official website and explore the "Rent a Room" scheme.

Tax regulations are subject to change, and it's crucial to stay updated with the latest guidelines from the government and tax authorities. Therefore, it is recommended to check the relevant websites or consult with a tax professional to ensure compliance and accurate reporting of your short-term rental income in Cambridge.

Holiday lets business rates in Cambridge:

The use of business rates for short-term property rentals in Cambridge depends on the number of days you let the property out in a year. If you let your property for more than 140 days (or 70 days for a furnished holiday let) per year, you may be liable for business rates instead of Council Tax.

Business rates are a form of property tax that apply to commercial properties, including certain types of short-term rentals that meet the qualifying criteria. If your property meets the threshold for business rates, it will be assessed and taxed accordingly.

It's important to note that the specific regulations and thresholds for business rates may vary, and it's recommended to check with the Cambridge Council or consult a tax professional to determine if your short-term rental property in Cambridge qualifies for business rates.

About us:

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