C5 Use Class: Planning Permission for Holiday Lets (UK Guide)

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

Planning laws in England are shifting. A proposed new use class—Class C5—could soon mean that Airbnb-style holiday lets require planning permission.

Until now, most short-term rentals have fallen under Class C3, the same category as regular homes. But with the rise in short-term lets across the UK—particularly in popular tourist areas like the Cotswolds and Cornwall—the government is introducing Class C5 to help local authorities manage housing pressure and protect long-term rental supply.

If adopted, this change would give councils the power to require planning consent when converting a normal home (C3) into a holiday let (C5). Whether this affects you will depend on how your local authority chooses to apply the new rules.

Although the policy hasn’t been formally adopted yet, consultations are underway—and implementation is widely expected in the near future.

C5 Use Class for Holiday Lets a potential project site location, subject to planning

Expert Insight: What the C5 Use Class Means in Practice

We welcome the proposed changes. For too long, the short-term letting sector has operated in a regulatory grey area, with many properties functioning as holiday accommodation without formal planning consent or due regard for their impact on local communities.

Some local authorities embrace holiday lets as part of a broader strategy to support tourism and local enterprise. Others, particularly in areas facing housing pressures, have adopted more restrictive stances in their Local Plans to protect long-term residential stock.

In our view, the introduction of a dedicated planning use class is a positive and necessary step toward professionalising the sector. Clearer regulation provides greater certainty for property owners, neighbours, and guests alike. It also supports a more transparent planning framework for those looking to invest responsibly in luxury holiday homes or short-term rentals.

With holiday lets becoming an increasingly divisive issue in planning policy, we expect the government to move toward tighter controls soon.

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

Even before the introduction of the proposed C5 use class, some local authorities in England have already used Article 4 Directions to restrict the proliferation of short-term holiday lets. An Article 4 Direction removes permitted development rights in specific areas—meaning that even changes currently allowed without planning permission, such as switching from a residential home (Class C3) to a short-term let, would require formal planning consent.

These powers are typically used in areas facing acute housing pressures or where the balance between permanent residents and holiday accommodation is seen as unsustainable. In practice, this means that councils can—and in some cases already do—require planning permission for holiday lets, regardless of the broader national policy.

How the New C5 Planning Rules Affect You

• Class C5 (Proposed): A new planning use class for short-term lets.

• Planning Permission: May be required to convert between C3 and C5, subject to local policy.

• Permitted Development Rights: Local authorities can remove these via Article 4 Directions.

• Professional Standards: Increased regulation encourages accountability and quality in the sector.

How to Futureproof Your Holiday Let Project

If you're considering a luxury holiday home—either as a private retreat or an income-generating asset—now may be a particularly opportune time to explore your options. With the planning framework evolving in a more structured and transparent direction, it is vital to align your plans with local policy from the outset.

We offer tailored feasibility studies and pre-design advice for holiday homes and cabins, combining architectural vision with practical insight into planning strategy and return on investment. Feel free to get in touch to see how we can support your next project.