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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Newcastle, UK?

Newcastle, UK has seen a flourishing short-term rental market, with Airbnb alone boasting 302 listings as of May 2022. 54% of these are entire houses that can earn hosts up to £2,496 per month. The city's thriving tourism industry, fueled by its rich history, vibrant culture, and annual events, has made it an attractive destination for short-term rental investors.

However, before diving into the short-term rental business in Newcastle, it's crucial to understand and comply with local regulations. Fortunately, Newcastle does not have the same 90-day rental limit that applies to London, giving hosts more flexibility to operate year-round.

Starting a Short-Term Rental Business in Newcastle

To start a short-term rental in Newcastle, hosts should:

• Research local regulations: Familiarize yourself with Newcastle's zoning laws and any specific short-term rental ordinances. Contact the Newcastle City Council for guidance on allowed uses and necessary approvals.
• Register your property: While there is no city-wide registration requirement for short-term rentals in Newcastle, it's essential to keep accurate records of your rental income and expenses for tax purposes.
• Obtain necessary licenses and permits: Depending on your property type and rental arrangement, you may need to obtain a House in Multiple Occupation (HMO) license from the Newcastle City Council. This applies to properties rented to 5 or more people from 2 or more households who share amenities.
• Comply with safety standards: Ensure your property meets all required fire safety standards, such as providing smoke alarms, carbon monoxide detectors, and fire extinguishers. Regularly inspect and maintain your property to ensure guest safety.
• Understand tax obligations: Short-term rental income is subject to income tax. Hosts should declare their rental earnings to HMRC and pay any applicable taxes. You may also be able to claim certain expenses to offset your tax liability.
• Communicate with neighbors: Foster good relationships with your neighbors by informing them of your short-term rental plans and providing contact information in case of any concerns. Be proactive in addressing any issues that may arise.
• Utilize rental platforms responsibly: When listing your property on platforms like Airbnb or VRBO, provide accurate descriptions, high-quality photos, and clear house rules. Promptly respond to guest inquiries and maintain a high level of cleanliness and professionalism.

By following these steps and staying informed about local regulations, hosts can successfully launch and operate short-term rentals in Newcastle. The city's strong tourism appeal and lack of strict rental limits make it an attractive market for investors, but compliance with applicable laws and best practices is key to long-term success.

Short-Term Rental Licensing Requirement in Newcastle

According to the Newcastle City Council website, there are no specific licensing requirements for short-term rental accommodation (STRA) in Newcastle. However, hosts must register their property on the NSW Government's STRA Register before advertising or offering it for short-term rental.

To register a STRA property, hosts need to:

1. Have a MyServiceNSW Account or Planning Portal login details
2. Provide copies of documents for uploading, which may include:
   - Development consent (if applicable)
   - Confirmation of the owner's consent (if a non-owner is registering the property)
3. Pay the registration fee of $65 for the first 12 months, with an annual renewal fee of $25 thereafter

The registration process is completed online via the NSW Planning Portal. Once the registration fee is paid, hosts receive their STRA property ID, which must be displayed on all online listings for the property.

In addition to the state-wide STRA registration, Newcastle City Council requires properties with five or more unrelated people sharing amenities to have a House in Multiple Occupation (HMO) licence. Hosts should contact the council to determine if their property requires an HMO licence.

While there are no specific fines mentioned for operating a STRA without registering, the state government's STRA Code of Conduct allows for disciplinary actions against non-compliant participants, including being listed on an exclusion register. Local councils can also investigate unauthorized STRA and take enforcement action under planning laws.

It's important for STRA hosts in Newcastle to stay informed about any potential changes to local regulations. The Newcastle City Council has indicated it may exercise the option to reduce the 180-day annual cap for non-hosted STRA under the state's regulatory framework. Hosts should monitor council communications and consult with local property managers to ensure ongoing compliance.

Required Documents for Newcastle Short-Term Rentals

To operate a short-term rental in Newcastle, UK, property owners must obtain and submit the following documents:

1. STRA Property Registration: All short-term rental accommodation (STRA) properties in Newcastle must be registered on the NSW Planning Portal before being advertised or offered for short-term rental. Upon successful registration, hosts will receive a unique STRA property ID number, which must be displayed on all online listings for the property.
2. Development Consent (if applicable): If the property requires development consent for use as a short-term rental, this documentation must be provided during the registration process.
3. Confirmation of Owner's Consent: If a non-owner is registering the property, they must provide confirmation of the owner's consent to use the property for short-term rental purposes.
4. Fire Safety Declaration: As part of the registration process, hosts must confirm that their property complies with the fire safety standards set by the NSW Government. This includes having working smoke alarms, clear evacuation plans, and fire extinguishers or fire blankets in the kitchen.
5. House in Multiple Occupation (HMO) Licence: Properties with five or more unrelated people sharing amenities, such as a kitchen or bathroom, must have an HMO license from Newcastle City Council.
6. Proof of Address: Hosts may be required to provide an official letter or document showing the property's address, dated within the last 3 months.
7. Landlord References: If the property has been rented within the last 5 years, landlord references may be requested.
8. Guest Identity Verification: Hosts must verify their guests' identity before allowing them to stay at the property. This can be done by requesting a valid government-issued ID, such as a passport or driver's license, upon check-in.

These documents serve to ensure compliance with local regulations, protect the safety of guests, and maintain the integrity of the short-term rental market in Newcastle. Failure to provide the necessary documentation may result in fines, penalties, or the inability to legally operate a short-term rental property.

To obtain these documents, hosts should visit the NSW Planning Portal to register their property and pay the associated fees. For HMO licenses, hosts must apply through Newcastle City Council's website or by contacting their offices directly. Other documents, such as proof of address and landlord references, can be obtained through personal records or by requesting them from the relevant parties.

By ensuring they have all the required documents in order, short-term rental hosts in Newcastle can operate their businesses in compliance with local regulations and provide a safe and enjoyable experience for their guests.

Newcastle Short-Term Rental Taxes

Short-term rental hosts in Newcastle, UK, are subject to various taxes, which can significantly impact their overall profitability. It's crucial for hosts to understand and comply with these tax obligations to avoid penalties and ensure the long-term success of their rental business.

1. Income Tax: Short-term rental income is subject to income tax, and hosts must declare their earnings to HM Revenue and Customs (HMRC). The tax rate depends on the host's total income and tax bracket, which can range from 20% to 45%. Hosts can choose to pay income tax through Self Assessment or have it deducted automatically if they are employed or receive a pension.
2. National Insurance Contributions (NICs): If the host's rental income exceeds £6,515 per year (as of 2021/22), they must also pay Class 2 NICs, which are £3.05 per week. If the rental income is more than £9,569 per year, the host may also need to pay Class 4 NICs, which are 9% on profits between £9,569 and £50,270 and 2% on profits over £50,270.
3. Value Added Tax (VAT): If a host's total taxable turnover (including rental income) exceeds £85,000 in a 12-month period, they must register for and charge VAT on their short-term rental services. The standard VAT rate is 20%.
4. Council Tax: Short-term rental properties in Newcastle are subject to Council Tax, which is collected by the local authority to fund public services. The amount of Council Tax depends on the property's valuation band and the rates set by Newcastle City Council.

Possible Deductions and Write-offs

Hosts can deduct certain expenses from their rental income to reduce their tax liability. Some common deductible expenses include:

1. Mortgage interest
2. Property insurance
3. Utility bills (e.g., electricity, gas, water)
4. Council Tax
5. Cleaning and maintenance costs
6. Repairs and replacements
7. Advertising and marketing expenses
8. Legal and professional fees
9. Depreciation of furniture and equipment

It's essential for hosts to keep accurate records of their income and expenses, as they may need to provide evidence to HMRC if requested. Consulting with a qualified tax professional can help hosts maximize their deductions and ensure compliance with tax regulations.

In addition to these tax obligations, short-term rental hosts in Newcastle should be aware of the potential implications of the UK's Making Tax Digital (MTD) initiative. MTD requires businesses, including short-term rental operators, to keep digital records and submit tax returns using compatible software. Hosts should stay informed about the latest MTD requirements and deadlines to avoid penalties and ensure smooth operations.

By understanding and complying with Newcastle's short-term rental taxes, hosts can minimize their tax burden, maximize their profits, and contribute to the city's thriving tourism economy.

England Wide Short-Term Rental Rules

In addition to Newcastle-specific regulations, short-term rental hosts in the city must also comply with national laws and guidelines set by the UK government. These rules aim to ensure a fair and safe rental market, protect consumers, and minimize the impact of short-term rentals on local communities.

1. 90-Day Rule: In London, short-term rental hosts are limited to renting out their entire primary residence for a maximum of 90 days per calendar year without obtaining planning permission from their local council. However, this rule does not apply to Newcastle or other cities in England.
2. Fire Safety: All short-term rental properties in England must comply with the Furniture and Furnishings (Fire Safety) Regulations 1988. This means that any furniture provided in the rental property must meet specific fire safety standards, and the host must ensure that smoke alarms and carbon monoxide detectors are installed and functioning properly.
3. Gas Safety: If the rental property has gas appliances, hosts must arrange for an annual Gas Safety check by a Gas Safe registered engineer. The host must provide guests with a copy of the Gas Safety certificate upon request.
4. Electrical Safety: Hosts must ensure that all electrical appliances and installations in the rental property are safe and in good working order. Regular Portable Appliance Testing (PAT) is recommended to ensure electrical safety.
5. Energy Performance Certificate (EPC): All rental properties in England and Wales must have a valid EPC, which rates the property's energy efficiency. The EPC must be displayed on the property and provided to guests upon request.
6. Legionella Risk Assessment: Hosts are responsible for assessing and managing the risk of Legionella bacteria in the rental property's water systems. This may involve conducting a risk assessment, regularly cleaning and disinfecting water systems, and maintaining appropriate water temperatures.
7. General Health and Safety: Hosts must ensure that their rental property is safe for guests and free from any hazards. This includes maintaining proper hygiene standards, repairing any defects or damages promptly, and providing clear instructions for using appliances and equipment.
8. Insurance: While not legally required, it is highly recommended for short-term rental hosts to obtain appropriate insurance coverage, such as public liability insurance and building/contents insurance, to protect themselves and their property from potential risks.
9. Data Protection: Hosts who collect and process personal data from guests must comply with the UK's Data Protection Act 2018 and the General Data Protection Regulation (GDPR). This includes obtaining consent for data collection, securely storing personal data, and providing guests with information about their data rights.
10. Anti-discrimination: Short-term rental hosts in England must comply with the Equality Act 2010, which prohibits discrimination against guests based on protected characteristics such as age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

By adhering to these national regulations and guidelines, short-term rental hosts in Newcastle can ensure a safe, fair, and compliant rental experience for their guests while contributing positively to the local community and economy.

Does Newcastle Strictly Enforce STR Rules?

Based on discussions in real estate forums like BiggerPockets and Reddit, Newcastle appears to have a relatively relaxed approach to enforcing short-term rental regulations compared to other UK cities. While Newcastle City Council has the power to investigate and take action against non-compliant short-term rentals, it seems that proactive enforcement is not a top priority.

Many hosts on these forums report operating short-term rentals in Newcastle without facing significant issues or pushback from local authorities. One host on BiggerPockets mentioned, "I've been running an Airbnb in Newcastle for over two years now, and I've never had any problems with the council. As long as you're not causing a nuisance to neighbors and you're paying your taxes, they seem to leave you alone."

Compared to cities like London, which has strict 90-day limits on short-term rentals, Newcastle is considered to be more Airbnb-friendly. The lack of a city-wide registration scheme or specific short-term rental licensing requirements makes it easier for hosts to enter the market and operate with fewer restrictions.

However, this does not mean that hosts can ignore regulations entirely. Newcastle City Council has the authority to take enforcement action against short-term rentals that violate planning laws, cause disturbances, or fail to meet safety standards. In a Reddit thread, one host cautioned, "Just because Newcastle isn't as strict as some other cities doesn't mean you can do whatever you want. You still need to follow the rules and be a responsible host."

Overall, while Newcastle may not have the strictest enforcement of short-term rental rules compared to other UK cities, hosts should still strive to comply with all applicable regulations and operate their rentals in a responsible and neighborly manner. By doing so, they can contribute to a thriving and sustainable short-term rental market in Newcastle while minimizing the risk of enforcement action or community backlash.

How to Start a Short-Term Rental Business in Newcastle

Starting a short-term rental business in Newcastle can be a lucrative venture, but it requires careful planning and execution. Follow these steps to successfully launch your short-term rental business in the city:

1. Research and understand local regulations: Familiarize yourself with Newcastle's short-term rental rules, including any zoning restrictions, licensing requirements, and safety standards. Consult with the Newcastle City Council and visit their website for up-to-date information on regulations and guidelines.
2. Determine your target market: Identify the type of guests you want to attract, such as tourists, business travelers, or families. Consider factors like location, property type, and amenities that will appeal to your target market. Conduct market research to assess demand and competition in your chosen area.
3. Choose the right property: Select a property that aligns with your target market and business goals. Consider factors like location, size, layout, and potential for renovation or decoration. Ensure that the property complies with local zoning and safety requirements for short-term rentals.
4. Obtain necessary licenses and permits: Register your property on the NSW Planning Portal and obtain a unique STRA property ID. If required, apply for a House in Multiple Occupation (HMO) licence from Newcastle City Council. Ensure that you have all necessary documents, such as proof of address and landlord references, ready for submission.
5. Set up your property: Furnish and decorate your property to create a welcoming and comfortable space for guests. Invest in high-quality amenities, such as comfortable bedding, well-equipped kitchens, and reliable Wi-Fi. Ensure that your property meets all safety standards, including fire safety and gas safety requirements.
6. Create a pricing strategy: Research the rates of similar properties in your area and develop a competitive pricing strategy. Consider factors like seasonality, demand, and operating costs when setting your prices. Utilize dynamic pricing tools to optimize your rates based on market conditions.
7. List your property on short-term rental platforms: Create attractive listings on popular platforms like Airbnb, Vrbo, and Booking.com. Use high-quality photos, detailed descriptions, and accurate information to showcase your property's unique features and benefits. Set clear house rules and communicate expectations to guests.
8. Manage your bookings and guests: Establish a system for managing bookings, communicating with guests, and coordinating check-ins and check-outs. Consider using a property management software or hiring a professional property manager to streamline operations and provide a seamless guest experience.
9. Ensure compliance and safety: Regularly review and update your property to ensure ongoing compliance with local regulations and safety standards. Conduct routine maintenance, repairs, and cleaning to maintain a high-quality rental experience for guests. Keep accurate records of your income and expenses for tax purposes.
10. Promote your business and build a reputation: Engage in marketing and promotional activities to attract guests and build your brand. Encourage satisfied guests to leave positive reviews and recommendations. Network with local businesses and tourism organizations to increase visibility and referrals.

Tips for success:

1. Focus on providing exceptional guest experiences to generate positive reviews and repeat bookings.
2. Stay informed about changes in local regulations and adapt your business practices accordingly.
3. Continuously monitor and analyze your performance to identify areas for improvement and optimization.
4. Consider partnering with local service providers, such as cleaners and maintenance professionals, to ensure consistent quality and reliability.
5. Invest in professional photography and marketing materials to showcase your property's unique selling points and attract high-quality guests.

By following these steps and implementing these tips, you can build a successful and sustainable short-term rental business in Newcastle while contributing to the city's thriving tourism industry.

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

When navigating the short-term rental regulations and zoning requirements in Newcastle, it's essential to reach out to the appropriate local authorities for guidance and clarification. Here are the key contacts for short-term rental hosts in Newcastle:

Newcastle City Council - Planning Department: For inquiries related to planning permissions, zoning, and land use regulations for short-term rentals, contact the Newcastle City Council Planning Department.

Email: planning.control@newcastle.gov.uk
Phone: 0191 278 7878
Address: Newcastle City Council, Planning Department, 9th Floor, Civic Centre, Barras Bridge, Newcastle upon Tyne, NE1 8QH

Newcastle City Council - Private Sector Housing: For questions about House in Multiple Occupation (HMO) licences and housing standards, contact the Private Sector Housing team.

Email: privaterentedservice@newcastle.gov.uk
Phone: 0191 277 1438
Address: Newcastle City Council, Private Sector Housing, 9th Floor, Civic Centre, Barras Bridge, Newcastle upon Tyne, NE1 8QH

Newcastle City Council - Business Rates: For inquiries related to business rates and Council Tax for short-term rental properties, contact the Business Rates team.

Email: business.rates@newcastle.gov.uk
Phone: 0191 278 7878
Address: Newcastle City Council, Business Rates, 9th Floor, Civic Centre, Barras Bridge, Newcastle upon Tyne, NE1 8QH

HM Revenue & Customs (HMRC): For questions about income tax, National Insurance contributions, and VAT related to short-term rental income, contact HMRC.

Phone: 0300 200 3300
Website: www.gov.uk/government/organisations/hm-revenue-customs

Newcastle Tourism: For general advice and support related to tourism and short-term rentals in Newcastle, contact Newcastle Tourism.

Email: tourism@ngi.org.uk
Phone: 0191 440 5720
Address: Newcastle Tourism, Newcastle Gateshead Initiative, 9th Floor, Baltic Place East, South Shore Road, Gateshead, NE8 3AE

In addition to these official contacts, short-term rental hosts in Newcastle can benefit from joining local host communities and industry associations. These groups can provide valuable insights, support, and networking opportunities to help hosts navigate the complexities of the short-term rental market.

Some notable organizations include:

UK Short Term Accommodation Association (STAA): The STAA represents the interests of short-term rental operators and provides resources, guidance, and advocacy for the industry.

Website: www.ukstaa.org

Airbnb Host Community - Newcastle: This Facebook group is a platform for Airbnb hosts in Newcastle to connect, share experiences, and support one another.

Facebook Group: www.facebook.com/groups/airbnbhostsnewcastle

By proactively engaging with local authorities and industry peers, short-term rental hosts in Newcastle can stay informed about regulations, access valuable resources, and contribute to the development of a fair and sustainable short-term rental market in the city.

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

Hosts and visitors to Newcastle have shared their experiences and opinions about the city on various online platforms, including Reddit and BiggerPockets. These first-hand accounts provide valuable insights into what makes Newcastle an attractive destination for both living and short-term rentals.

In a BiggerPockets forum discussion about investing in Newcastle, user 'PropertyNorth' shared their experience with short-term rentals in the city, stating, "I've had great success with Airbnb in Newcastle. The city's popularity with tourists and business travelers means there's consistent demand, and the relatively affordable property prices make it a good investment. I've found that properties close to the city center or near universities tend to perform well."

Reddit user 'GeordieGal' praised Newcastle's green spaces in a thread about the city's best features, saying, "One of the things I love most about Newcastle is the abundance of parks and green spaces. Jesmond Dene is a beautiful park with woodland walks and a petting zoo, and Leazes Park is perfect for a picnic or a game of frisbee. It's great to have these oases of nature right in the city."

On a BiggerPockets thread about up-and-coming areas for investment, user 'NorthEastProperty' highlighted Newcastle's potential, commenting, "Newcastle is definitely a city to watch for property investment. The regeneration projects in areas like Ouseburn and Byker are creating new opportunities, and the planned expansion of the Metro system will improve connectivity. The city's universities also provide a reliable source of rental demand."

Based on these experiences and stories shared by residents and visitors, Newcastle emerges as a promising location for starting a short-term rental business. The city's combination of friendly locals, vibrant culture, tourist attractions, and green spaces make it an appealing destination for a wide range of visitors.

Moreover, Newcastle's relatively affordable property prices and consistent demand from tourists, business travelers, and students create a favorable environment for short-term rental investments. The city's ongoing regeneration projects and planned infrastructure improvements further enhance its potential for growth and success in the short-term rental market.

By leveraging Newcastle's unique assets and tapping into the experiences of successful hosts, aspiring short-term rental entrepreneurs can build thriving businesses that contribute to the city's economy and provide memorable stays for guests from around the world.

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.