Liverpool

Guide to Liverpool’s Short-Term Rental Regulations

Liverpool’s short-term rental (STR) industry is having a moment. The affordable property prices combined with the demand for accommodation have led to a surge in investments. STRs in the city currently have an earning potential of around £38,000. Although Liverpool typically complies with UK law, it has some additional rules and guidelines to be aware of. Nearby boroughs such as Wirral and St Helens also have their own legislation. That’s why we’re exploring all the STR regulations in Liverpool and the greater Merseyside area, including licensing and tax requirements. Disclaimer: Our guide is intended for informational purposes only and doesn’t constitute legal advice. For guidance on specific cases, please consult a property lawyer. 

STR regulations in Liverpool

Liverpool mostly follows UK law concerning short-term lets. The city generally has a more relaxed attitude to the industry than other major European cities. Like the rest of the UK, Liverpool considers an STR to be a residential property you let for short periods. That’s typically a few days or weeks. Residents are free to rent their properties to guests for up to 140 days in a calendar year. That might be a spare room, a unit in a building, or the entire premises. You don’t have to live on the property or stay there at the same time as guests. If you intend to let your property for brief periods through the year, that constitutes a change in use. You must apply for planning permission to reclass your STR as a commercial entity. There are significant penalties for property owners and managers who fail to do so. Note that STR rules are about to change in Liverpool. The UK government is introducing a nationwide registration scheme to regulate the industry more effectively. They’re also revising how many days homeowners can let their property before seeking planning permission.

The Liverpool selective licensing scheme

Private landlords are required to get a license before they rent property in certain areas of the city. That includes both short and long-term lets. The licensing scheme ensures that all properties meet set standards and landlords fulfill their responsibilities. You can use the postcode checker to see whether your desired location requires a license. Both individuals and companies are eligible to apply for licenses. Ideally, the applicant should be the one responsible for agreeing tenancies, collecting rent, and managing the property. They’re also most likely the tenants’ contact person. To apply, you can visit the Liverpool City Council web portal. You’ll require the following information and documents:

• Proof of address (for example, a recent utility bill in your name)
• A copy of the gas certificate
• Property details
• Tenancy details
• Safety information
• Contact details for everyone involved in managing the property
• Evidence that you’re fit to manage the business

There are license fees ranging from around £300 to £600. The amount depends on your property type, energy performance, and membership in UK associations. You pay in two installments: once to process the application and another time for the license. If you’re a property manager, note that the license becomes invalid if you dissolve the company. You won’t be able to transfer the document to the owner.

Tax requirements for STRs in Liverpool

Liverpool doesn’t have any special tax requirements for STR operations. You just pay income tax, capital gains, and VAT as standard. If you primarily use the property for commercial purposes, you also have to pay business rates. Primary residents (those letting for 140 days or less) owe council tax instead. Note that even if you’re sub-letting your property, you’re still responsible for paying. Although Liverpool covers a large area, it only has one set of council tax bands. You only have to pay a different rate if your property falls in one of the adjacent areas. Note that the boroughs often meet the city limits. Check what rate you’d pay on any UK property using the postcode finder.

Popular areas around Liverpool with STR regulations

Investors don’t have to limit themselves to the city center. The Liverpool City Region is full of opportunities from the idyllic coast to lush meadowland. Here’s a look at some regulations and guidelines for all these areas:

Knowsley

Liverpool’s next-door neighbor is full of potential. The borough of Knowsley is close enough to attractions like the docks and Anfield Stadium to make a visit worthwhile. However, property prices are generally lower than in the city center. Given the new developments, demand for lodgings could also increase. The Halsnead Garden Village could draw thousands of new families, travelers, and businesses into the area. Instead of selective licensing, Knowsley has a landlord accreditation scheme. It’s a voluntary program you can join to demonstrate your property meets high standards. You can join for free but you have to meet requirements such as regularly updating your portfolio and undergoing an annual audit. You’re also more likely to benefit from the landlord accreditation scheme if you accept both short and long-term lets. The scheme primarily offers advice and mediation services for owners with permanent tenants.

St. Helens

Just a short train ride away from Liverpool, you’ll find the borough of St Helens. Visitors can easily go sightseeing and come back to relax in the picturesque countryside towns. St Helens doesn’t have selective licensing but it does require all private landlords to meet standards. All your properties in the area must:

• Be clean and in good condition
• Have enough space for the occupants
• Provide sufficient furnishings and fittings
• Be safe from hazards
• Have a Gas Safety Certificate
• Include smoke alarms on every floor
• Have a carbon monoxide detector

You must also have your electrical system checked by a professional at least once every five years and obtain a certificate.

Sefton

Sefton has a steady influx of tourists due to the Grand National at Aintree. The long coastline is also a hotspot for wildlife enthusiasts and bird watchers. In 2023, Sefton launched a selective licensing program for private landlords in specific zones. You have to apply and prove your properties all meet acceptable standards. The council provides a very detailed list of requirements on their website. The borough not only regulates private landlords but also allows neighbors and visitors to check whether a property has a license. This makes it extra risky to run a STR from your residence without first applying for the right paperwork. Sefton also runs an accreditation scheme. If your property meets high standards, you get discounts on licensing fees and a certificate.

Wirral

Although Wirral is furthest from Liverpool, it still attracts its fair share of tourists. The borough has a long coastline and forest trails for those who want a relaxing vacation. If they wish to visit the city, it’s only a 30-minute train journey. Similar to Liverpool, Wirral has a selective licensing program for landlords in certain areas. You can check the zoning maps to see whether that applies to your location. Given that the penalty is £30,000, it’s best to double-check with the council too.

Halton

If you’re not from the area, you might be confused about whether Halton belongs to Liverpool. The borough is actually in the county of Chesire but it’s a part of the Liverpool City region. It collaborates with the neighboring councils on economic initiatives such as tourism, transport, and housing developments. Halton doesn’t have selective licensing. However, the council encourages tenants and guests to report properties that aren’t keeping their properties in good condition.

Resources

• GOV.UK, When is permission required?
• GOV.UK, Short-term lets rules to protect communities and keep homes available
• Liverpool.gov, Licensing and permits
• Invest Knowsley, Halsnead Garden Village
• Knowsley.gov, Knowsley Landlord Accreditation Scheme (KLAS) and Property Register
• StHelens.gov, Private landlords
• Sefton.gov, Selective licensing
• Sefton.gov, Property accreditation scheme
• Wirral.gov, Selective licensing
• Halton.gov, Private sector housing