Renting out your shed on Airbnb might seem like an easy way to make extra income. But taking this endeavour takes a few extra steps in the UK. You need to know where the legal lines are; otherwise, your local council can intervene. This guide explains what you need to know, including answers to frequently asked questions.
Can I Rent Out My Shed on Airbnb in the UK?
Yes, but it’s not as simple as clearing out the space, adding a bed, and listing it online. You can only do so if it’s legal and safe. That means the shed must meet certain standards before it can be used for accommodation.
Once you’re charging people to stay there, it’s no longer just a garden building. This also brings it under planning rules and safety regulations. From a legal standpoint, you’re responsible as a host and may also need to report the income to HMRC.
Start with Planning Permission
While garden sheds usually don’t require it for normal use, planning permission is required for any building made for people to sleep in overnight. The first step is to contact your Local Planning Authority (LPA), and you can start by asking for a pre-application enquiry. This provides guidance based on your property and plans before applying formally.
In the UK, using a shed as a short-term rental can be considered a material “change of use.” That’s when a structure is no longer being used for its original purpose. In this case, switching from storage to living space.
This still applies, even if your shed didn’t need planning permission when it was first built.
As of 2024, short-term visitor accommodation now comes under Use Class C5. This specifically covers properties used for short-term lets, such as those listed on Airbnb. If you plan to rent out a shed or garden room as a short-term let, your building will be changed to class C5. Whether this change needs planning permission depends on your local council’s policies, as some areas are “control zones” where C5 always requires planning approval, whereas others will usually not. This makes it even more important to check with your Local Planning Authority (LPA) before listing your garden building for rental.
Building Regulations Apply Too
To rent a shed on Airbnb also brings building regulations into play. This includes insulation, fire safety measures, ventilation, and a safe means of escape in case of an emergency.
You don’t need to know all the regulations off-hand, but here are some you’ll likely run into:
- Electrics (Part P rules): You can’t legally do electrical jobs yourself unless you’re certified to do so. Otherwise, a qualified electrician must do the work and approve it afterwards. You should receive a certificate that proves it meets safety standards.
- Escape in a fire: Guests need a safe and easy way out in the event of a fire. During electrical installation, include smoke alarms, and in some cases, a fire door, depending on your shed’s layout.
- Proper base: If it’s a larger building or intended for year-round use, it may need more than paving slabs. For instance, a concrete slab or installed footings for weight support and structural stability.
Your local council’s Building Control team can tell you what’s expected under building regulations. You can also hire a private Approved Inspector instead, or a registered builder or electrician.
Do I Need a Kitchen or Bathroom to Rent Out My Shed?
Yes—at minimum, guests need access to basic hygiene facilities, and having some kind of kitchen setup is a plus. But since most sheds don’t come with plumbing, adding a toilet or shower means major work. These changes may also need to be included on planning permission or building control approval.
As for kitchens, a full setup isn’t always possible in a garden building, especially smaller ones. But a basic kitchenette with a sink, kettle, small fridge, and microwave can go a long way. Cooking facilities in a wooden building can also be a fire hazard, so this would be highly scrutinised.
No built-in facilities? Then guests will need to rely on your main house for basics like the loo or a shower. But this might defeat the point of renting out the shed instead of a room. Sanitation and drinking water don’t legally have to be inside the shed, but if they are not, your setup may be restricted by planning policy or health standards, and could affect insurance or guest expectations.
Be upfront about that, and double-check your insurance covers guest access.
Do I Need to Pay Tax or Register as a Business?
Yes, because your shed accommodation now counts as taxable property income, and you must report the earnings to HMRC. This is usually done through Self Assessment tax return.
If you frequently host guests or add services (e.g., breakfast), it may be considered a business or furnished holiday let. This could have extra obligations, such as business rates or National Insurance.
Note: If your total property income (not profit but gross income) is £1,000 or less in a tax year, you can benefit from the £1,000 property allowance.
Therefore, there’s no need to register for Self Assessment, but it’s still wise to keep records in case HMRC ever asks. These could include copies of bookings or receipts, notes on services provided, and any related expenses.
Could I Be Forced to Remove My Shed I Rent on Airbnb?
Yes—if the council hasn’t approved the change of use, they can order you to take it down.
In Rhos-on-Sea, North Wales, the council ordered a 40-ft ‘watchtower’ used as an Airbnb to be taken down due to its size and lack of planning permission, as reported by The Sun.
Consult with your LPA before you build or list. If you’ve already started using the shed without planning permission, consider submitting a retrospective application. Again, if the council refuses, they may instruct you to stop using the space or remove it altogether.
Always be on the safe side!