C5 Planning Permission: UK Holiday Let & Airbnb Rules Explained

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Why the C5 Use Class Matters for Airbnb Hosts & Holiday Let Owners

Planning laws in England are changing, and they could directly affect anyone running or considering a holiday let. The government is proposing a new Use Class C5, which would place Airbnbs and short-term rentals in their own category. In practice, this may mean that operating a holiday cottage or Airbnb soon requires planning permission where it didn’t before.

The change is driven by pressure in tourist hot spots like Cornwall, the Cotswolds, and the Lake District, where too many short-term lets are seen to reduce local housing supply. Councils will gain more power to decide when a home can be used as a holiday let, and when it must remain part of the long-term housing stock.

As RIBA Chartered Architects specialising in eco and luxury holiday homes, we’ll break down what Class C5 could mean in practice, how Article 4 Directions already affect some areas, and how you can plan projects with confidence under the new rules.

Potential holiday let site in the UK countryside, any development here would fall under planning rules, including the proposed C5 Use Class.

An Architect’s Insight: What the C5 Use Class Means in Practice

From our perspective, the introduction of a dedicated short-let use class is a welcome change. For too long, the short-term letting sector has operated in a grey area, and many properties have been run as de facto holiday accommodation without formal permission or regard for their impact on local communities. Equally, in some instances, a holiday home may be classified as a C2 planning class, whilst in others a C3, this lack of clarity results in confused homeowners looking to establish a holiday home business. We’ve seen clients unsure whether converting a barn to an Airbnb requires consent, or investors assuming a second home can be let out without any red tape. Clearer rules will help remove these ambiguities.

Local authorities have so far taken varied approaches. Some councils embrace holiday lets as a boost to tourism and the local economy, adopting a permissive approach. Others, particularly in regions with housing shortages, have started pushing back, even before C5 becomes law. In popular destinations where holiday rentals are pricing out long-term residents, councils are seeking ways to protect the local housing stock. In our view, a dedicated use class for short-term lets is a positive and necessary step toward professionalising the sector. It creates a more transparent framework for everyone. Property owners get clear guidelines on what’s allowed. Neighbours and communities gain assurance that holiday lets won’t proliferate unchecked. And importantly, responsible investors in luxury holiday homes or unique rentals can proceed with greater certainty, knowing the rules of the game upfront.

As architects specialising in holiday home design, we also see an upside in quality and accountability. When holiday lets are formalised through planning, owners are more likely to invest in good design, proper facilities, and sustainable features to meet approval, benefiting guests and communities alike. Ultimately, while some might view new regulations as a hurdle, we believe tighter controls are advantageous, and it’s best to embrace them as part of running a professional holiday rental business.

Holiday Let Planning: What Does Article 4 Mean for You?

Even before the C5 use class is officially rolled out, some local councils have already taken action using Article 4 Directions. An Article 4 Direction is a planning tool that lets a council remove “permitted development” rights in specific areas. In plain English, this means the council can require you to seek planning permission for changes that would normally be allowed without one. And yes, that can include turning a dwelling (Class C3) into a short-term holiday let.

For example, in a town with an Article 4 Direction targeting holiday lets, you must apply for planning permission to use your property as an Airbnb, even under the current planning framework. Councils typically invoke Article 4 in areas facing acute housing pressure or where there’s a danger of communities being “hollowed out” by too many vacation rentals. It’s a way local authorities control holiday homes, if they believe local families are being priced out. Notably, London has long had a 90-night limit on short-term rentals before permission is needed; that’s a separate rule, but it stems from the same concern about balancing housing needs.

If your holiday let is in an area with an Article 4 Direction, consider it a red flag: you’ll likely need full planning approval to continue or start short-term letting. Many popular UK destinations (certain parts of Devon, Cornwall, Cumbria, etc.) are watching these developments closely. The takeaway is that national policy might say one thing, but your local council can have the final say. Always check local planning maps or consult with a planning professional if you’re unsure. Skipping permission where it’s required can lead to enforcement action; it’s not worth the risk, so please check.

If you are interested in learning more about Permitted Development and Article 4, you can click the link.

How the New C5 Planning Rules Affect You

Let’s distil the key points of these proposed changes. Here’s a quick overview of how C5 planning permission might work in practice:

• Class C5 (Short-Term Let Homes) – A new use class for properties used as short-term holiday accommodation (e.g. Airbnbs, vacation cottages). This separates holiday lets from ordinary dwellings (Class C3) in the eyes of planning law.

• Planning Permission Requirements – Changing a house from residential (C3) to a holiday let (C5) may require planning permission, depending on your local authority’s policy. The government plans to allow the change under permitted development nationally, unless councils opt out. So in many areas, you might not need a permit by default, but local councils can override that freedom if they see fit. Always verify the rules in your area.

• Article 4 Directions – Local authorities can use Article 4 powers to remove permitted development rights. In areas under an Article 4 Direction for short-term lets, you will need to apply for permission to start a holiday let (and sometimes even to continue one). This is already in effect in some communities and could expand alongside the C5 rollout.

• Impact on Quality and Standards – On the upside, bringing holiday lets into the formal planning system encourages higher standards. Owners will be more accountable for factors like parking, waste, noise, and safety. The goal is a more responsible, sustainable holiday rental sector, one that coexists more harmoniously with year-round residents. For those of us designing and investing in high-end holiday properties, this push for quality is a good thing.

(It’s worth noting that current proposals indicate existing holiday lets would be automatically reclassified to C5 without needing a fresh planning application. In other words, if you already legally operate a holiday let, you’re not expected to lose it overnight. The focus is on regulating new or expanded short-term lets moving forward.)

How to Future-Proof Your Holiday Let or Airbnb Project

Thinking of creating a luxury holiday let, eco cabin, or Airbnb? With the new C5 planning rules, it’s critical to design and plan with the future in mind. Here’s how to stay ahead and some things to consider:

• Do Your Homework on Local Policy: We consistently receive calls from individuals who have purchased a piece of land, unsure whether it will receive planning permission or not. Before you buy land or change the use of an existing property, research the local council’s stance on holiday lets. Are there Article 4 Directions in place? Any neighbourhood caps or upcoming restrictions? A pre-application to the council and a solid grasp on the regulations can save costly mistakes from occurring.

• Engage with Professionals: A good professional saves you money, whether it’s an accountant or an architect. In this instance, of occurring land and gaining C5 Use Class approval, it’s important to consult with a RIBA qualified Architect or Planning Consultant. As a RIBA chartered Architect, we often conduct feasibility reports to determine what is likely to be approved at the planning stage.

• Design with Sensitivity: Show that your project will benefit the area. Thoughtful design, for example, using natural local materials, eco-friendly features, and providing ample parking, can demonstrate that your holiday let will be a well-considered addition to the community and local area. Eco-Home features, such as off-grid energy systems, not only appeal to guests but also signal to locals and the broader community a care for the locality.

• Plan for the Long Term: Use Class C5 looks set to be implemented. By complying with (or exceeding) planning requirements now, you set your project up for long-term success. It’s easier to operate a rental legally and with community support than to dodge rules and risk enforcement. Moreover, a planned approved holiday home is a more valuable asset if you ever decide to sell the property or business.

In short, it is prudent to align your holiday let plans with the emerging rules. The C5 use class and related policies are about balancing tourism with community needs. If you work with the planning system, securing the permissions and designing responsibly, you’ll be ahead of the competition that seeks to cut corners.

As RIBA Chartered Architects with proven experience securing planning approval for everything from luxury holiday lodges to off-grid eco cabins, we know how to turn complex rules into opportunities.

Our advice is clear: embrace the regulations. Treat planning permission not as a barrier, but as a framework to create a standout holiday home. One that delivers unforgettable stays for your guests, satisfies local planners, and adds real, long-term business value when it comes to resale.