Brighton Short-Term Rental Regulations: Navigating Airbnb Management

Brighton, being one of the most popular short-stay destinations in the country, enjoys year-round high occupancy rates. Its popularity among the hen-do and stag-do participants, as well as the partygoers, is what consistently brings more and more strict regulations for short-term holiday lets.

The Airbnb landlords in Brighton and Hove enjoy one of the highest occupancy rates in the country, with up to 90% of units occupied in the summer season. An average daily rate per room is £162 and the average monthly revenue varies seasonally from £1,223 in winter to £3,164 in the summer (AirDNA stats, September 2022). 

If you’re thinking of setting up a short-term rental, or Airbnb unit of your own, read up, as we explain the details of Brighton and Hove city council specific rules and requirements.

Please note, there are multiple new regulations discussed by the local Council at the moment. Things may change quickly in 2024! We will update this post as soon as new regulations are confirmed. Please consult an expert before setting up an Airbnb short term rental property.

What Are the Main Policies for Airbnb Rentals in Brighton?

Are you considering becoming an Airbnb Host? The most important information: if you offer any kind of short-term accommodation or property management, you will need planning permission, Brighton’s regulations are pretty strict about it.

The City Council states that “The need for planning permission will depend on how much the use of the property changes as a result of being available for short-term holidays.” That is to regulate the rental market in the area. So in short, better ask for legal advice before setting up an Airbnb investment in Brighton.

What About HMO (House of Multiple Occupation) Regulations in Brighton?

The 2004 Housing Act regulates the HMO definition in Brighton. Property must be the sole or main residence of the occupier to be covered by an HMO licensing scheme. So short-term rental properties, including Airbnb ones, won’t qualify as HMOs.

Does the 90-Day Rental Rule Apply to Properties in Brighton?

The 90-day rule is a local regulation, and only applicable to properties in London. It doesn’t apply here if you manage an Airbnb in Brighton. Discover more by reading this guide on London Airbnb regulations for hosts.

What Should You Know About Taxes on Short-Term Property Rent in Brighton?

If you’re working in Airbnb management in Brighton and providing short-term lets, you’ll need to pay council tax on the property (even if you are eligible for a reduction or an exemption). You may be exempt from it in case you are liable for business rates.

You are allowed to make up to £7500 annually tax-free from letting out accommodation in your home (or permanent residence, as they call it). Regular rental income tax rules apply if you’re renting out your second home. For details, visit the website about the Government “Rent a Room” scheme. 

Additionally, it's important to keep detailed records of your rental income and expenses to ensure compliance with tax regulations. Any income above the £7,500 threshold will be subject to income tax, so proper accounting can help you avoid unexpected tax liabilities.

If you're operating multiple properties or listings, you may need to register for self-assessment with HM Revenue and Customs (HMRC). This will allow you to report your rental income accurately and pay any taxes owed. Similarly, it’s essential to stay informed about the local laws and regulations regarding short-term lets, as these can vary significantly by region and may impose restrictions or additional fees.

Consider consulting with a tax advisor or accountant who specializes in property management to maximize your tax efficiency and ensure compliance with all applicable laws to your Airbnb management company. They can provide guidance on allowable expenses you can deduct, such as maintenance, cleaning, and management fees, which can help reduce your overall taxable income.

Lastly, keep in mind that the short-term rental market is ever-evolving, with local councils frequently revising policies to address issues like housing shortages and neighborhood impacts. Stay proactive by joining local groups or forums where other Airbnb hosts share tips and updates, and always be prepared for potential changes in regulations that could affect your Airbnb management strategy in Brighton.

Do I Have To Charge Business Rates on My Short-Term Property in Brighton?

Short answer: it depends on how many days a year you rent it. Self-catering properties available for rent for 140 days or more in England, Scotland, or Wales are considered business-rate properties by the government. Read more about it here.

You will be charged based on the type and size of your property, the location, and how many guests you can accommodate. Guest houses or bed-and-breakfasts that accommodate more than six people at a time may also be subject to business rates.

Have You Heard of KeyNest?

Try KeyNest Points if you are a Brighton landlord or host looking for a time and cost-saving solution for key management and check-ins.

If you drop a key off with KeyNest, guests, cleaners, or contractors will safely be able to retrieve the key from one of the 4.000 points (usually from a local store or cafe). Each time the key is picked up and returned, you will receive a notification. To make checking in and out easier, you can set custom times according to your convenience.

We have a huge network of points in Brighton, most likely just a couple of minutes away from your property! Find out more here.

*Please note that regulations regarding short-term rentals tend to change often. We will update this article regularly but please consult a legal advisor first, before setting up a short-term rental business.