Liverpool Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Liverpool

Liverpool has emerged as a popular destination for short-term rentals, attracting millions of visitors annually. The city's embrace of short-term rental platforms like Airbnb has reshaped its accommodation landscape, offering travelers diverse lodging options and providing landlords with a lucrative revenue stream. However, it's crucial for hosts to understand and comply with the local regulations governing this industry.

Zoning and Licensing Requirements

According to Liverpool City Council's regulations, if you rent out your property for up to six months in a year (fully furnished), you are considered a short-term rental landlord. In this case, you may need to obtain a selective landlord license if your property is located in one of the 16 designated wards within the city.

The selective licensing scheme aims to raise the standard of privately rented accommodations and ensure compliance with the Housing Act 2004. To apply for a license, hosts must provide various documents, including proof of address, gas certificates, property details, tenancy information, safety information, and personal details of all interested parties.

Additionally, if your property hosts more than five households sharing amenities like a kitchen or bathroom, you will need to apply for a House in Multiple Occupation (HMO) license.

Principal Residence Requirement

Unlike some other cities, Liverpool does not currently have a principal residence requirement for short-term rentals. This means that property owners can potentially operate multiple entire-unit short-term rentals across different properties, as long as they comply with other applicable laws and regulations.

However, it's advisable for hosts to stay informed about any updates or changes to the city's regulations, as the principal residence requirement is a common measure adopted by many municipalities to prevent the conversion of long-term rental housing into short-term accommodations.

Taxation and Fees

Short-term rental hosts in Liverpool are required to collect and remit applicable taxes, including the Value Added Tax (VAT) and the Council Tax, on their rental income.

The VAT threshold for short-term rentals in the UK is £85,000 per year. If your total rental income exceeds this threshold, you must register for VAT and charge it to your guests.

Additionally, hosts may be subject to Council Tax on their rental properties, even if they are eligible for reductions or exemptions. However, if you are liable for business rates, you may be exempt from paying Council Tax.

Enforcement and Penalties

While Liverpool does not currently have specific regulations targeting short-term rentals, hosts are still required to comply with other relevant laws and regulations, such as noise ordinances, parking regulations, and building codes. Failure to comply with these laws may result in fines or other penalties imposed by the city or relevant authorities.

Additionally, the city may implement new regulations or enforcement measures in the future to address any potential issues or concerns related to short-term rentals, such as housing affordability or neighborhood disturbances.

Community Concerns and Debates

As the short-term rental industry continues to grow in Liverpool, some residents and community groups have raised concerns about the impact of these rentals on housing affordability, noise levels, and the character of residential neighborhoods.

While there have been no major public debates or controversies regarding short-term rentals in Liverpool so far, it's essential for hosts to be mindful of their neighbors and to operate their rentals in a responsible manner to maintain good relations within the community.

Short-Term Rental Licensing Requirement in Liverpool

Liverpool has implemented a selective licensing scheme that requires landlords renting out properties in certain designated areas of the city to obtain a license. This licensing requirement applies to short-term rentals as well.

If you are renting out your property for up to six months in a year, on a fully furnished basis, you are considered a short-term rental landlord in Liverpool. In this case, you will need to apply for a selective landlord license if your property is located in one of the 16 wards covered by the selective licensing scheme.

To obtain the selective landlord license, hosts must go through an application process that involves submitting various documents and undergoing inspections to ensure compliance with safety and zoning regulations.

The required documents for the license application include:

• Proof of address
• Gas safety certificate
• Property details (floor plans, etc.)
• Tenancy details
• Safety information
• Names, addresses, and emails of all interested parties
• 'Fit and proper' information (declarations of any relevant convictions or breaches)

Once the application is submitted, the city council will review the documents and schedule inspections to verify that the rental property meets the necessary standards outlined in the Housing Act 2004.

It's important to note that if your property hosts more than five households sharing amenities like a kitchen or bathroom, you will need to apply for a House in Multiple Occupation (HMO) license instead of the selective landlord license.

Obtaining the required license is crucial for operating a short-term rental business legally in Liverpool. Failure to obtain the necessary license or violating the terms of the license can result in fines, penalties, or legal consequences.

The licensing system serves as a mechanism for the city to regulate the short-term rental market, ensure compliance with safety and quality standards, and address potential issues or concerns related to this type of accommodation.

Required Documents for Liverpool Short-Term Rentals

To obtain the necessary licenses and permits for operating a short-term rental in Liverpool, hosts are required to submit a comprehensive set of documents to the city council. These documents serve various purposes, such as verifying ownership or tenancy, ensuring compliance with safety regulations, and providing information about the rental property and its occupants.

One of the primary documents required is proof of address. Acceptable forms of proof may include utility bills, council tax statements, or other official documents that confirm the host's address.

Another crucial document is a gas safety certificate, which must be obtained from a registered Gas Safe engineer. This certificate ensures that the gas appliances and installations in the rental property are safe for use and comply with relevant regulations.

Hosts must also provide detailed information about the rental property itself, including floor plans, the number of bedrooms, and the intended occupancy levels. This information helps the city council assess whether the property meets the necessary safety and zoning requirements.

For the safety of guests, hosts must submit documentation demonstrating compliance with fire safety regulations and building codes. This may include fire risk assessments, smoke detector certifications, and proof of adherence to accessibility standards.

Hosts are also required to provide tenancy details, such as the names and contact information of all occupants or guests who will be staying at the rental property. This information is essential for the city council to monitor and regulate the short-term rental market effectively.

In addition to these documents, hosts may be required to provide additional information or documentation depending on the specific circumstances of their rental property. For example, if the property is classified as a House in Multiple Occupations (HMO), further documentation and inspections may be necessary.

It is crucial for hosts to carefully review and comply with the document submission requirements set forth by Liverpool City Council. Failure to provide the necessary documents or providing incomplete or inaccurate information may result in delays or denial of the short-term rental license application.

Liverpool Short-Term Rental Taxes

Short-term rental hosts in Liverpool are subject to various tax obligations, both at the national and local levels. It's crucial for hosts to understand and comply with these tax requirements to avoid potential penalties and legal consequences.

One of the primary taxes that short-term rental hosts in Liverpool must consider is the Value Added Tax (VAT). In the UK, the VAT threshold for short-term rentals is £85,000 per year. If your total rental income exceeds this threshold, you must register for VAT and charge it to your guests.

The current VAT rate in the UK is 20%. This means that if you are registered for VAT, you must add 20% to the rental price and remit this amount to Her Majesty's Revenue and Customs (HMRC).

In addition to VAT, short-term rental hosts in Liverpool may also be liable for Council Tax on their rental properties. Council Tax is a local tax levied by the Liverpool City Council to fund various municipal services.

However, if your rental property is classified as a self-catering accommodation or a holiday let, you may be eligible for reductions or exemptions from Council Tax. It's essential to consult with the Liverpool City Council or seek professional advice to determine your eligibility for any Council Tax discounts or exemptions.

Furthermore, if your rental income exceeds certain thresholds, you may be required to pay income tax on your earnings. It's crucial to keep accurate records of your rental income and expenses, as well as any taxes paid, for tax reporting and compliance purposes.

Short-term rental hosts in Liverpool may also be subject to other taxes or fees imposed by the city or national authorities, such as licensing fees or tourism-related taxes. These additional taxes or fees may vary depending on the specific circumstances of the rental operation.

It's important for hosts to stay informed about any changes or updates to the tax regulations, as these can evolve over time to address emerging issues or concerns related to the short-term rental industry. Consulting with a tax professional or seeking guidance from the relevant authorities can help ensure compliance and avoid potential penalties.

UK Wide Short-Term Rental Rules

While the regulation of short-term rentals is primarily a matter for local authorities and devolved governments, there are some overarching rules and considerations that apply across the United Kingdom.

Principal Residence Requirement: Many local authorities, particularly in areas with high housing demand, have implemented a principal residence requirement for short-term rental operators. This means that hosts can only rent out their primary residence or a portion of it, such as a secondary suite or spare room. The goal is to prevent investors from operating multiple entire-unit short-term rentals across different properties, which could exacerbate housing shortages.

Taxation: Short-term rental hosts in the UK are required to pay income tax on their rental earnings. The tax implications can vary depending on factors such as the host's overall income, the number of properties rented out, and whether the rental activity is considered a trade or business.

Additionally, hosts may be liable for Value Added Tax (VAT) if their rental income exceeds the VAT registration threshold, which is currently £85,000 per year.

Mortgage and Lease Restrictions: Homeowners and tenants should review their mortgage agreements and lease contracts, as some may prohibit or restrict short-term rentals. Failure to comply with these restrictions could potentially lead to legal consequences or even eviction.

Fire Safety and Building Regulations: Short-term rental properties must comply with fire safety regulations and building codes, including the provision of smoke detectors, fire extinguishers, and clearly marked escape routes. Hosts may be required to obtain safety certificates or undergo inspections to ensure compliance.

Insurance: It is recommended that short-term rental hosts obtain appropriate liability insurance coverage to protect themselves from potential claims or lawsuits related to guest injuries or property damage.

Data Sharing and Registration: The UK government has announced plans to introduce a mandatory national register for short-term rentals, which would require hosts to provide information about their rental properties. This data would be shared with local authorities to help monitor the impact of short-term rentals on local communities and housing markets.

While the specific regulations may vary across different regions and local authorities, it is essential for short-term rental hosts in the UK to stay informed about the rules and requirements in their area. Consulting with local authorities, seeking professional advice, and joining industry associations can help ensure compliance and avoid potential legal consequences.

Does Liverpool Strictly Enforce STR Rules?

Based on discussions on forums like Bigger Pockets and Reddit, it appears that Liverpool does not strictly enforce its short-term rental (STR) rules compared to some other cities in the UK. The overall sentiment suggests that Liverpool is relatively Airbnb-friendly.

Several Reddit users have shared experiences of operating short-term rentals in Liverpool without facing significant consequences or enforcement actions from the city authorities. One user commented, "I've been hosting Airbnb in Liverpool for a few years now, and the council hasn't really bothered me as long as I'm not causing any major issues."

On Bigger Pockets, some users have expressed interest in investing in short-term rentals in Liverpool, indicating a perception that the city's regulations are not overly restrictive. One user inquired, "Has anyone had success with Airbnb investments in Liverpool? Seems like a decent market to get into before regulations tighten up."

While Liverpool does have some regulations in place, such as requiring selective landlord licenses for certain areas and adhering to housing standards, the enforcement of these rules appears to be relatively lax compared to cities like London or Edinburgh, where short-term rental regulations are more stringent.

Furthermore, there are numerous reports of hosts successfully operating short-term rentals in Liverpool without obtaining the necessary licenses or adhering to the principal residence requirement that exists in some other cities. This could suggest that the city's enforcement efforts are not as rigorous as in other areas.

However, it's important to note that the lack of strict enforcement does not necessarily mean that the situation will remain unchanged indefinitely. As the short-term rental industry continues to grow and evolve, Liverpool may consider introducing more stringent regulations or enforcement measures in the future to address potential issues or concerns related to this type of accommodation.

Based on the discussions on these forums, it can be concluded that Liverpool is currently an Airbnb-friendly city, and hosts are able to operate short-term rentals with relative ease compared to some other cities in the UK, where regulations and enforcement are more stringent.

How to Start a Short-Term Rental Business in Liverpool

Starting a short-term rental business in Liverpool requires understanding and complying with the local regulations. Here are the steps to get started:

1. Determine Eligibility: Ensure that your property is located in an area where short-term rentals are permitted and that you meet the necessary requirements outlined in the Housing Act 2004 and other relevant regulations.
2. Obtain Selective Landlord License (if required): If your property is located in one of the 16 designated wards covered by the selective licensing scheme, you will need to apply for a selective landlord license. This involves submitting various documents, including proof of address, gas certificates, property details, and safety information.
3. Apply for House in Multiple Occupation (HMO) License (if applicable): If your property hosts more than five households sharing amenities like a kitchen or bathroom, you will need to obtain an HMO license.
4. Ensure Compliance with Safety and Building Codes: Ensure that your rental property meets all fire safety regulations, building codes, and accessibility standards. Obtain the necessary certifications and permits.
5. Register for Taxes: Short-term rental hosts in Liverpool are required to pay income tax on their earnings and may need to register for Value Added Tax (VAT) if their rental income exceeds the threshold.
6. Obtain Adequate Insurance: Ensure that you have appropriate liability insurance coverage to protect yourself from potential claims or lawsuits related to operating a short-term rental business.
7. Prepare Property and Guest Information: Develop a comprehensive guest information package and set of house rules, outlining policies for guests, noise restrictions, pet policies, and any other relevant guidelines.
8. Advertise and List Your Property: Once you have ensured compliance with regulations, you can advertise and list your short-term rental property on platforms like Airbnb and VRBO.
9. Stay Compliant: Regularly review and comply with any updates or changes to Liverpool's short-term rental regulations. Failure to comply may result in fines or legal consequences.

While Liverpool currently does not have stringent regulations specifically targeting short-term rentals, it's essential to operate responsibly and in compliance with existing laws and guidelines. Additionally, as the industry continues to evolve, Liverpool may introduce more stringent regulations or enforcement measures in the future.

Who to Contact in Liverpool about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance regarding short-term rental regulations and zoning in Liverpool, you can contact the following departments and officials:

Liverpool City Council Planning Department
Phone: 0151 233 3021
Email: planningandbuilding@liverpool.gov.uk

The Planning Department is responsible for administering and enforcing the city's zoning bylaws and regulations related to short-term rentals. You can reach out to them for inquiries about zoning requirements, permitted areas for short-term rentals, and other zoning-related matters.

Liverpool City Council Housing Services
Phone: 0151 233 3011
Email: housingservices@liverpool.gov.uk

The Housing Services department handles matters related to landlord licensing, housing standards, and compliance with the Housing Act 2004. You can contact them for information about licensing requirements, inspections, and enforcement actions related to short-term rental operations.

Liverpool City Council Environmental Health
Phone: 0151 233 3015
Email: envhealthbcs@liverpool.gov.uk

The Environmental Health department is responsible for addressing issues related to noise, nuisance, and public health concerns. If you have concerns or complaints about short-term rentals in your neighborhood, you can contact this department.

Liverpool City Council Mayor's Office
Phone: 0151 233 3008
Email: mayorsoffice@liverpool.gov.uk

If you have general inquiries or feedback regarding the city's policies and stance on short-term rentals, you can contact the Mayor's Office to voice your opinions or seek clarification on the city's approach to this issue.

It's recommended to contact the appropriate department or office directly for the most up-to-date and accurate information. Additionally, you can visit the Liverpool City Council's website, which may provide additional resources and guidance on short-term rental regulations and zoning.

What Do Airbnb Hosts in Liverpool on Reddit and Bigger Pockets Think about Local Regulations?

Based on the discussions on Reddit and Bigger Pockets, there seems to be a mix of opinions and perspectives among Airbnb hosts regarding the regulations for short-term rentals in Liverpool.

Some users express appreciation for the relatively relaxed regulations in Liverpool compared to other cities. One user commented, "Liverpool seems to be pretty lax when it comes to Airbnb regulations, which is a relief for hosts like me."

However, there are also concerns about the potential impact of unregulated short-term rentals on housing affordability and neighborhood character. A user stated, "While the lack of strict rules is nice for now, I worry that Liverpool might start cracking down on Airbnbs if they become too disruptive."

A few users suggest that the current situation may be temporary, and hosts should be prepared for potential changes in the future. One user advised, "Enjoy the freedom while it lasts, but be ready to adapt if Liverpool decides to implement stricter rules."

Some users are actively seeking investment opportunities in Liverpool due to the perceived lack of restrictions on short-term rentals. One user inquired, "Has anyone had success with Airbnb investments in Liverpool? Seems like a good market to get into before regulations tighten up."

There are discussions about the potential risks of investing in markets without clear regulations, with one user warning, "Just because there are no strict rules now doesn't mean you're in the clear. Regulations can change overnight, and you could be stuck with a property you can't operate as intended."

A few users express concerns about the potential impact of unregulated short-term rentals on the local housing market and community, with one user stating, "While it's tempting to take advantage of the lack of rules, we should also consider the broader implications of our actions."

Overall, the opinions on Reddit and Bigger Pockets reflect a range of perspectives, from those who welcome the lack of strict regulations as an opportunity to those who are cautious about potential future changes and the impact on local communities.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.