Understanding Airbnb regulations in Liverpool

Liverpool has emerged as a booming market for short-term stays in the last couple of years. From football fans’ weekend stays, to longer, seasonal voyages, and the infamous party trips - Liverpool became an international destination for visitors from around the world.

The Airbnb landlords in the city can’t complain much: an average daily rate per room is £133 with a 55% occupancy rate, and average monthly revenue of £1,720 (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 Liverpool’s regulations in the field.

And if you want to explore some tried-and-tested Airbnb host tips, we have asked a group of experienced hosts for advice and put their comments together in this article.

What are the main policies for Airbnb rentals in Liverpool?

As long as you rent your property for up to 6 months in a year (fully furnished), you’re considered a short-term rental landlord. If you are renting it out in any of the 16 wards of the city, you will need a selective licence. Click here to input your postcode and check if you need a licence for your property in Liverpool.

Also, in case, your property hosts more than 5 households and these households share some amenities (kitchen or bathroom), you will need to apply for an HMO licence.

What should I know about the landlord selective licence in Liverpool?

The scheme of selective licence in Liverpool was created to raise the standard of privately rented accommodation in the city.

The aim is to make sure that rentals measure up to at least the minimum standard imposed by the Housing Act 2004. It is in place since 1 April 2022.

What does the application for the landlord selective licence in Liverpool looks like?

Landlords are asked to declare convictions for dishonesty, violence or drug-related offences, or breaches of housing, landlord or tenant laws. In addition, they are also asked questions about the property and amenities it offers.

Once a licence is approved some compliance visits will be made to ensure licensed properties meet the requirements.

The licence holder should be the individual or a property management firm that has a legitimate UK address where legal notices may be sent should be and:

Collects the rent
Issues and ends tenancies
Carries out the daily management tasks of the property let
Is the contact for tenants in regards to reporting issues

How to apply for a selective landlord licence in Liverpool?

For a start, you will have to first collect the relevant documents needed for the application. Here is a list of the needed paperwork:

Proof of address
Gas certificate
Property details
Tenancy details
Safety information
Name, Addresses, and Email of all interested parties
'Fit and Proper' information

If you have the documents at hand, you can register and apply for the landlord selective licence online here.

You can use the same link to track the progress of your application via LAR, make payments, and queries.

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

The 90-day rule is only applicable to properties in London, so it doesn’t apply here.

What about taxes on short-term property rent in Liverpool?

Firstly, you will have to define the nature of your situation. If your Liverpool Airbnb listing covers a room in a property where you reside, you'll benefit from several tax-free allowances and advantages.

On the other hand, if you're a host running an Airbnb business in the investment property or partially reside, and you let it for 140 days or more per year, it is then categorised as a self-catering property which is liable for business rates.

If you’re providing short-term rental stays, 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.

Tax-free allowances for short-term accommodation in Liverpool

UK Hosts on Airbnb can receive a £1,000 tax-free allowance on income earned from hosting. There’s a catch, though: you can’t claim both the £1,000 tax-free allowance and Rent-a-Room relief (see above) on the same income. It’s called a Micro-Entrepreneurs allowance and you can read more about it here.

Do I have to charge business rates on my short-term property in Liverpool?

In short: it depends on how many days a year you rent it. If you host a property in England, Scotland, or Wales that is available to let for 140 days or more per year, the government deems it a self-catering property that is subject to business rates.

Rates are based on the property type, size, location, and how many guests can stay on your property. You may also be liable for business rates if you run a guest house or a bed-and-breakfast for more than six people at any one time.

Have you heard of KeyNest?

If you are a landlord or host in Liverpool and want to save time and money on your check-ins and key management, check out the KeyNest Points service we offer.

KeyNest lets you drop a property key in one of 4.000 points (usually local stores or cafes) and then safely direct your guests, cleaners or contractors to pick up the key from there. You get a notification every time the key is picked up and returned - and can set custom check-in and check-out times as convenient to you.

We have a huge network of points in Liverpool, most likely just a couple of minutes away from your property! https://keynest.com/.

*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.