According to Airbnb, nearly 40% of UK hosts report using Airbnb income specifically to help them to afford their home.

However, listing your home now comes with stricter oversight. Since January 2024, HMRC's digital platform reporting rules have required platforms like Airbnb to collect and share hosts' earnings data, with the first reports transmitted in January 2025 and annually since. This is separate from the £1,000 trading/property tax allowance, which determines whether tax may be owed — not whether your data gets reported.

Checking mortgage terms before listing is important, since renting without permission could lead to a 'breach of contract' and financial penalties.

Can I rent my home on Airbnb with a standard residential mortgage?

Whether or not you can rent out your home on platforms such as Airbnb, depends on the terms set out in your mortgage contract.

Most homeowner (residential) mortgages will state that you cannot use your property for commercial purposes (which includes renting it out). If this is the case, then you won’t be able to rent your home on short-term holiday lettings sites such as Airbnb.

However, mortgage terms vary across providers so it’s always worth checking what your contract stipulates. For example, some lenders will allow you to rent out a room in your home as long as you stay in the property too. A handful of lenders including Metro Bank also allow you to rent your home on sites like Airbnb for up to 90 days — though Metro Bank specifies you'll also need approval from your buildings and contents insurer, and if your property is leasehold, agreement from your freeholder.

In most cases, you’ll be expected to tell your mortgage lender that you intend to rent out your home. Under your mortgage conditions, you may even need to get ‘consent to let’ which might also mean paying a fee.

What happens if I do rent my home on Airbnb without my mortgage lender’s approval?

If you break the terms of your mortgage, you can face serious financial penalties. In the worst-case scenario, renting your home on Airbnb without approval from your mortgage lender can trigger an acceleration clause. This means your lender can ask you to repay the entire mortgage loan because you’ve breached your contract.

What type of mortgage will I need to rent on Airbnb?

If you’re buying a property specifically to rent out as a holiday let (including Airbnb), you’ll usually need a short-term holiday let mortgage.

Can I buy an Airbnb property with a buy-to-let mortgage?

Generally, no. Most standard buy-to-let (BTL) mortgages still strictly prohibit short-term letting. Beyond the volatility of seasonal income, the financial landscape for short-term lets changed fundamentally in April 2025. The government abolished the 'Furnished Holiday Lets' (FHL) tax regime, meaning second homeowners can no longer claim the same generous mortgage interest relief as before.

In 2026, short-term landlords are taxed on a 'level playing field' with long-term landlords, making it harder to offset mortgage costs against profits. Most investors now require a specialist 'Holiday Let Mortgage' specifically designed for this model.

Fundamentally, the type of mortgage you have must reflect how the property is being used. Where there's any doubt, the lender can clarify which mortgage type applies.

What should I do if I want to put my home on Airbnb?

The first step is checking the mortgage terms and conditions and following any necessary procedures, such as requesting the lender's consent to let.

Where a mortgage doesn't specify anything, or isn't clear about renting out the home, contacting the mortgage lender before listing as a short-term let is the safer approach.

Does Airbnb also affect home insurance?

Yes, just as listing your home or Airbnb can affect your mortgage, it can also affect your home insurance, because listing on Airbnb significantly alters your risk profile. Some mainstream insurers will let you add holiday let cover to your existing policy for a fee, but usually you’ll need a specialist holiday-let policy which covers the increased risk of short-term letting.

Standard home insurance rarely covers paying guests. Specialist Airbnb landlord policies typically cost more than a standard non-Airbnb landlord policy, reflecting the higher risks of accidental damage, public liability, and the increased 'wear and tear' of frequent guest turnover. Exact costs vary by provider and change over time, so it's worth getting a few current quotes to compare.

Can I rely on insurance from the rental site?

Most holiday rental sites offer some sort of host insurance or host damage protection but before you rely on this, it’s important to understand the limitations.

Broadly, the guarantees that are included with many listings sites will only cover your property for the duration of each guest’s stay. You won’t be covered when the property is empty.

It's also crucial to understand what exclusions there are. For example, Airbnb's Host damage protection (part of AirCover for Hosts) excludes normal wear and tear, loss of currency, damage from acts of nature such as earthquakes or hurricanes, and cleaning associated with normal checkout tasks like laundry or rubbish removal. Guest injury or property damage is handled separately under Host liability insurance rather than Host damage protection.

A specialist policy from an insurance provider can offer more robust and comprehensive cover than platform-provided protection alone.

Home insurance tailored to your needs

Home insurance needs to reflect the actual risks a property faces – whether that's from a long-term tenancy or a holiday let. A policy that doesn't match how the property is actually used can result in a rejected claim.