Can you prove whether your house is up to scratch? Buyers want to know their new home is as safe as it is spacious, so having the right safety documents can help you secure considerable value.

In this article, we’ll break down what you need to know about EICR certificates to help you uncover an overlooked sales angle. We’ll also share some other property tips like what to do when you don’t have an EICR and how to find the right estate agent to help. 

## What are EICR certificates, and what are they for?
‘EICR’ stands for Electrical Installation Condition Report. As the name suggests, EICR certificates summarise the health of your property’s electrical infrastructure and how safe it is. EICRs tests all permanent electrical fixtures in a property, including:

- The electricity meter
- Major fittings like the fuse box, sockets, and lights
- Any visible or exposed wiring within the property
- Heating and safety equipment, like boilers, panel heaters, showers, and hard-wired smoke detectors

EICRs don’t consider appliances like white goods, kitchen and personal appliances, televisions, etc., as they’re not fixed within the property. Instead, they fall under the portable appliance test (PAT) requirements.

EICR certificates are only required for landlords and rental properties. The certificates ensure that any property’s electrical features won’t cause fire or injure tenants. However, a similar framework (the Electrical Installation Certificate or EIC and Minor Electrical Installation Works Certificate or MEIWC) exists for residential property sellers.

Selling a property that doesn’t comply with British electrical safety standards can be considered a criminal offence. Sellers, therefore, must find a way for all electrical fixtures to comply with the [BS7671 standard](https://electrical.theiet.org/bs-7671/building-regulations/).

EICs, MEIWCs and EICRs each satisfy the BS7671 requirement (although in slightly different ways), so it’s vital you know how each one works to ensure you’re compliant before you start selling. Note that you may not need an EICR certificate if you have EIC/MEIWC certificates covering any electrical work you’ve had done since 2005. We explain why in the next section.

## What’s the difference between an EICR and an EIC?

EICs and MEIWCs (Electrical Installation Certificates and Minor Electrical Installation Works Certificates) verify that any newly completed electrical work is safe as and when it was completed. They should be provided to you within 30 days of the work’s completion and can only be issued by the qualified electrician who conducted the renovation. 

The difference is, EICRs are retrospective: they test electrical features regardless of whether they were certified as safe upon completion. EICRs may be useful to you if you need to certify older electrical works before certifications were required (pre-2005), or because you’ve since lost copies of EICs you need.

Since 2013, if an installation is completed by an unregistered electrician (and as a result can’t legally certify the safety), the work will need to be examined and certified within five days by a registered third party. After confirming the quality of the work, the third party will issue an EICR, rather than an EIC or MEIWC.

## How can I get an EICR certificate, and how much do they cost?

You can only get an EICR certificate completed by a registered electrical contractors or third party certifiers. You can search the UK-wide [NICEIC database](http://www.niceic.com/householder/find-a-contractor) and Scottish [SELECT database](https://www.select.org.uk/SELECT/Find-a-member/SELECT/PostcodeSearch/PostCodeSearch.aspx?hkey=9ad83e00-5ec9-4353-82f6-0e55991406d7) directly or use an online search engine to find a qualified contractor in your area.

EICR certificate costs can vary by region, the business you use and the rates they charge. Some suppliers charge a flat-rate fee while others charge according to the scope of the work.

## How long is an EICR certificate valid for?

EICR certificates are valid for a maximum of five years across the UK. If you’re looking to use an EICR to sell your home, it’s unlikely that your property will be on the market that long. However, you may not need to certify your property if you’re reselling it again within five years of the last one being issued or you’ve not had any additional electrical work done.

You’ll only need to notify your local building control authority and recertify your home if you’ve:

1. Installed a new electrical circuit somewhere in your home (regardless of its voltage)
2. Replaced or added a fuse box
3. Added or altered an existing circuit in any special locations (such as bathrooms, wet rooms, or swimming pools)

Use the following links for building control authorities in [England and Wales](https://www.labc.co.uk/), [Scotland](https://www.labss.org/) and [Northern Ireland](http://www.buildingcontrol-ni.com/).

## Do I need an EICR to sell my house?

No you do not need an EICR to sell your house but some form of documentation verifying that the property is compliant with BS7671 is necessary if electrical works have been undertaken since 2005. EICRs are one way homeowners can verify the safety of their properties, but they are not specifically required by law. Instead, homeowners can use copies of EICs and MEIWCs for any relevant works. 

Buyers familiar with EICRs may appreciate the more recent appraisal of your property’s safety. Therefore, this recency could be a useful sales tactic for safety-conscious buyers looking for more peace of mind and EICs allow alone. 

## Do I need an EICR to rent my house?
Yes from 1st April 2021, all tenancies will require an EICR if you want to rent your house. As long as your EICR is less than 5 years old it is valid, if not, you'll need to get a new one.

### Let sparks fly with buyers, not boilers

Make sure your property is electrically certified and sell your home with ease. Collect the right documents before you go to market and impress buyers with your solid track record of safe renovations.

Source a registered local electrician to help fill in any documentation gaps and consider how an experienced estate agent can help you with any other safety requirements before you go to market.

## Compare local estate agent in seconds

Finding an experienced estate agent who can advise you on the sales process can be difficult. Although you may have bought before, selling is everything in reverse.

Enter your details in our checker below and we’ll compare local agents in seconds. You can choose between speed, price and experience all in one dashboard to find the best available agent.

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wiring in a house and fuse box

Everything you need to know about EICR certificates, if you need one and what to do if you don't have one.

What is an EICR certificate? | Do I need one to sell a house?

What is an EICR certificate, and do you need one to sell your house?

The Stamp Duty Land Tax (Temporary Relief) Act was introduced by the government in July 2020 to combat the weight of the COVID 19 Pandemic on the housing market. Now, a year later, and nearly 4 months after Stamp Duty began its slow return to normal rates, our data shows that first time buyers are paying up to 31.5% more for properties across England.

### What is the Stamp Duty Holiday (Stamp Duty Land Tax Temporary Relief Act)?

To prevent COVID 19 Pandemic from devastating the housing market, the government intervened with the Stamp Duty Land Tax (Temporary Relief) Act. The Act, also known as the Stamp Duty Holiday, suspended and altered some of the existing rates for SDLT to incite interest in the housing market and galvanise the economy. 

From 8th July 2020 to 30th June 2021, home buyers could pay highly reduced Stamp Duty rates, including zero tax on properties priced under £500,000.

* **Up to £500,000**: Zero SDLT
* **£500,001 to £925,000**: 5%
* **£925,001 to £1.5 million**: 10%
* **Above £1.5 million**: 12%

### How does the Stamp Duty Holiday affect house prices?

As Stamp Duty is a tax on home buyers - the lower the rates, the more money buyers have in their pockets. The holiday, coupled with the severe shortage of homes on the housing market, and a general lack of funds among average-wage home buyers, has made the demand for property skyrocket. With home sellers quick to take advantage of this situation, there’s been a big increase in property prices across the country.

If you’re interested in how house prices are looking in your area, check out our [free House Prices tool](https://www.getagent.co.uk/house-prices). It provides up-to-date information on average house prices as well as their average selling time.

### The average first time home buyer is paying 11.7% more

In July 2020 just before the SDLT holiday was introduced, the [average price of a first-time buyer home](https://www.getagent.co.uk/house-prices) was £212,166. However, our latest figures show the average first-time buyer home now costs £236,982, an increase of £24,816 or 11.7%.

### Biggest increases by region

The North West has seen the largest first-time buyer price increase by region, with the average first-time buyer now paying £168,820. That’s a 16.9% jump since July last year. 

Elsewhere in the north, Yorkshire and Humber have seen a rise of 14.8% and the North East has seen a rise of 13.4%. In the Midlands region, the West Midlands has seen a rise of 13% and the East Midlands a rise of 12.9%

* **East Midlands**: 12.92%
* **East of England**: 11.29%
* **London**: 5.28%
* **North East**: 13.41%
* **North West**: 16.90%
* **South East**: 8.94%
* **South West**: 11.28%
* **West Midlands**: 13.08%
* **Yorkshire and The Humber:** 14.77%
* **England**: 11.70%

### Biggest increases by local authority level

Richmondshire, North Yorkshire, has seen the largest increase in average price for a first-time buyer. Originally £178,974 in June 2020, today the average price has risen to £235,425, an increase of £56,451 or 31.5%

In Rossendale, Lancashire, the average first-time buyer property now costs £147,417, having risen 24.3% since the introduction of the SDLT holiday.

* **Richmondshire:** 31.54%
* **Rossendale:** 24.25%
* **North Norfolk:** 23.09%
* **North Devon:** 18.95%
* **Cotswold:** 18.06%
* **Hastings:** 17.94%
* **Shropshire:** 17.73%
* **West Devon:** 17.71%
* **Derbyshire Dales:** 17.62%
* **Salford:** 17.18%

### Are there any exceptions?

Not everywhere in England has seen a big increase in property price. In some of the more affluent areas of London, the average property price for first time buyers has dropped significantly.

In Kensington & Chelsea for example, the first time buyer’s home cost £1.1 million in July 2020. Now however, the price has dropped to just over £1 million, a decrease of - 6.5%. 

Other decreases include:

* **Hackney:** - 4.1%
* **City of London:** - 4%
* **City of Westminster:** -3% 
* **Southwark** -1.4%

### What the Stamp Duty Holiday means for first time home buyers

While the Stamp Duty Holiday has been a huge success in injecting life into a threatened housing market, it’s undeniable that first time buyers have been marginalised. While many existing homeowners have benefited from a boost to the value of their property, most first-time buyers are worse off when it comes to taking that first step onto the property ladder. 

### What is Stamp Duty?

Stamp Duty Land Tax or SDLT is a government tax on property and land transactions. The amount of tax you pay is proportionate to the amount of money you spend on property or land.

Young woman sitting at a desk with papers and thinking about taxes.

pexels-mikhail-nilov-6964107

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.

First time buyers pay 31% more due to Stamp Duty Holiday

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.


Buying a flat above a commercial premises has its benefits. They are usually cheaper than normal flats.  Plus, shops above flats are usually located in the heart of your village, town or city, which means you'll be living much closer to local amenities. Unfortunately, they also come with some downsides - fire safety hazards and noise problems to name a few. 

In this blog, we're going look at the merits of leasehold flats above commercial premises. Are they worth the hassle? What are the mortgage options for flats above shops?

### Why is it so hard to get a mortgage on a flat above a shop?

Is is harder to get a mortgage on a flat above a shop because of concerns about the resale value. Mortgages lenders will be concerned about:

- Fewer interested parties when selling
- Shops changing hands and purposes
- Smells from restuarants below
- Noise from the shops below
- Risk of fires from commercial properties

### How are owners of flats above shops defined?

There are two types of property ownership in the UK: freehold and leasehold. A freehold owner is someone who owns their property outright, while a leasehold owner has the right to live in the property under terms of a lease agreement. This agreement usually lasts from 85 to 125 years.

Flats above shops are classed as leaseholds. In fact, most flats in the UK are defined as leaseholds. Leasehold arrangements provide a way to impose certain conditions on both the leaseholders and freeholders of properties. Shared areas can be maintained, while leaseholders are expected to contribute to the property's maintenance.

For more information on the differences between leaseholds and freeholds, check out [our blog](https://www.getagent.co.uk/blog/properties/leasehold-vs-freehold "Leasehold vs freehold").

### Is it worth buying a flat above a shop?

Unfortunately, no one can decide whether it's worth buying property but you. Properties above commercial premises have always found buyers, so they're obviously an attractive option to some. To help you decide, we've researched some pros and cons.

### Pros of buying a flat above a shop

1. **They are cheaper than standard flats**

First time buyers are often tempted by flats above shops because they're cheaper than standard flats. While their cheaper price is a clear pro, it's a result of their shortcomings. Furthermore, while flats above shops are cheaper, standard flats are more likely to grow in value over time.

If you're thinking of buying, it's worth knowing how much money you have to spend. You find out by getting a [free online house valuation](https://www.getagent.co.uk/online-valuation "GetAgent online valuation") with the GetAgent valuation tool.

2. **They are attractive to young tenants**

If you buy a flat above a shop, you could let out the property to young professionals or students. Young people are attracted to properties that are closer to local amenities, bars and restaurants.

**Please note:** If you are thinking of letting out your leasehold flat, you must check the terms of the lease agreement you have with the freeholder. They might prohibit you from subletting the property. We recommend always asking the freehold owner for permission. It's also worth nothing that if you're a leaseholder in London, you cannot let out your property for more than 90 days a year. 

3. **You can move somewhere you can afford**

As flats above shops are cheaper than ordinary flats, you could move to an area that would have initially been out of your price range. 

4. **Bigger rooms and windows**

Flats above shops, particularly in London, are usually of Victorian or Georgian heritage, which means they date back to the 1800s and 1900s. As a result, they have larger rooms and windows. This is a big plus for homeowners used to cramped living spaces and low ceilings.

### Cons of buying a flat above a shop

1. **Noise**

Flats above shops are usually located in the heart of the town or city. Unfortunately, this means you will have to deal with noise from all sides. If you're living above a main road, expect early mornings to be filled with noise from cars, shoppers and dog walkers. 

Another source of noise you'll have to deal with is from the premises below. How disruptive this will be depends on the type of business the owner is running. If it's a bar or restaurant, you can expect a greater level of noise than a store on the high street. 

If you're thinking of choosing a flat above a shop, make sure you investigate the type of premises below. If your job involves working late and unsociable hours, you may find it harder to sleep in the mornings and evenings because of the noise downstairs.

2. **Pests and odours**

If the business below the flat is a restaurant or bar, you may have to contend with pests like rats and cockroaches as a result of food waste. Another risk, especially if the chefs are cooking often, is odours. If it's a chicken shop, there will likely be grease and grill fumes. We recommend that you ensure the property is well ventilated before purchasing. 

3. **Increased fire safety hazard**

If you live above a restaurant or takeaway there will be chefs cooking below you, resulting in an increased fire safety hazard. 

4. **Access to your flat**

If you're lucky, the front door to the flat will be located on the street, but it's not unusual for flat owners to have to walk through the restaurant or shop to get to their front door. In a less ideal scenario, it could be at the end of a dark alleyway. These conditions can be unappealing, so make sure you're happy with the type of access you'll have.

Another access problem is parking - will you have your own parking space, or will you have to share with customers? Make sure you find out from the freehold owner.

5. **Future shop owners**

You might consider yourself a lucky neighbour if the premises below are a greengrocer or a clothes shop. In such a scenario, you wouldn't have to worry about late night noise and fumes. However, you should not take it for granted that the business will be there forever. There's a very real chance that the premises will change hands a year or two after you buy the flat, making your future much less clear.

6. **Getting a mortgage is difficult**

Mortgage lenders are less inclined to lend to buyers of flats above shops for the reasons above. This could affect your chances of purchasing the flat, especially if you don't have a lot of spare cash. 

One of the best things you can do to minimise this problem is hire a mortgage consultant. They can assess your situation and help you find a compatible mortgage lender. 

### Can you get a mortgage on a flat above a shop?

Yes you can although you will find less lenders willing to offer a mortgage and you may find you're offered a loan to value of 75% or less meaing you'll need a larger deposit.

### What mortgages are available for flats above shops?

While it can be difficult to find a mortgage lender that will lend for this type of property, it's definitely not impossible. There are high street lenders and specialist lenders who offer mortgages if you know where to look. A reliable mortgage consultant can help you find the best one.

[We cover specialist mortgages in much more detail here. 
](https://www.getagent.co.uk/blog/buying/how-to-get-the-best-mortgage-rate "How to get the best mortgage rate")

Remember, it's unlikely you'll be able to purchase a property like this without a sizeable deposit. Most flats above commercial premises require a deposit of at least 20% of the property's value. 

**Should I get a full building survey?**

If you do buy a flat above a commercial premises, we recommend ordering a full building survey through a licensed conveyancer. A building survey will help identify any issues with the property, as well as the costs to fix them. 

Any repairs paid for by the freeholder are divided equally. As a leaseholder, you will have a responsibility to pay for repairs pertaining to the whole building. Annual costs are usually paid as service charges. The service charge should include the following:

- Internal parts maintenance
- Buildings insurance
- Overall structural integrity
- Water rates

Your conveyancer will determine the extent of what the service charge covers and provide a breakdown of these costs. As commercial premises have expensive service charges, you should decide  who pays what with the shop owner.

Please note that major works, such as roof works, are not covered solely by the freeholder. The leaseholder is expected to contribute, as roof works are deemed 'common parts' that benefit more than one person.

This type of property purchase demands a qualified conveyancing solicitor. You can learn more about choosing the right conveyancer with [our guide](https://www.getagent.co.uk/guide/conveyancing/choosing-the-right-conveyancer "Choosing the right conveyancer").

A local newsagent's shop front with a flat above.

Buying a flat above a shop: The pros and cons

We take a look at the merits of leasehold flats above commercial premises. Are they worth the hassle? What are the mortgage options for flats above shops?

Whether you're a sole trader, small business owner, or a contractor, getting a mortgage when you're self-employed can seem like an uphill battle.

In this article, we'll take a look at some of the  documentation you'll need to have prepared, so you're in the best position to get a mortgage and take your next step on the property ladder.

### Can you get a mortgage if you're self-employed?

Yes. It is possible to get a mortgage if you're self-employed.
In most cases, if you can prove your income and meet the affordability criteria set out by the particular lender, you'll be eligible for exactly the same mortgages as those who aren't self-employed.

In fact there are no particular mortgage products just for self-employed people. Self-certification mortgages (also known as self-certified mortgages), which previously allowed self-employed workers to declare their income without lenders, were banned in 2014. This was a consequence of the mortgage market review, over worries that borrowers were taking out mortgages that they could not afford in the long term.

### What do mortgage lenders class as 'self-employed'?

A mortgage lender will class you as 'self-employed' if you own more than 20-25% of a business from which you earn your main income. This is the case whether you're a company director, sole trader, or contractor.

If you do a self-assessed tax return for your main income stream each year, chances are you'll be classed as self-employed by a mortgage lender.

### How much can you borrow if you're self-employed?

As long as you can prove you're eligible, and can afford repayments, you should be able to borrow the same amount as someone with a PAYE income.
Generally this amounts to between 4 and 5 times your annual income, with most mortgage lenders capping lending at 4.5 times your annual income. So, if you earn £30,000 a year, you should expect to be able to borrow around: £135,000.

If you're self-employed, your annual income will usually be based on an average of your profit from the past 2 or 3 years.

If you're unsure about how much you'll be able to borrow, it can be worthwhile getting financial advice from an independent adviser or a mortgage broker. They'll be able to look at your income over the past few years, and let you know what amount you'll be able to borrow.

### Are self-employed mortgages more expensive than normal mortgages?

No, mortgages for self-employed people are not more expensive than 'normal' mortgages.

Most lenders don't have specific products for self-employed borrowers. You'll apply for the same products and terms as borrowers with PAYE income. This means you'll pay the same interest rates, and product fees.

When it comes to the cost of a mortgage - particularly the interest rate you'll pay - it's not just your income that has a significant impact. Lenders will also look at: 

- The amount of deposit you're able to put down
- The type of mortgage you're applying for
- The term length
- Your credit rating

### How to apply for a mortgage if you're self-employed

The mortgage application process is the same whether you're a self-employed applicant or not.

**Mortgage in principle**

A mortgage in principle (otherwise known as an agreement in principle) is a preliminary statement from a lender saying they're willing to lend you a certain amount of money before you finalise your home purchase.

During the application, the lender will ask you about your situation, including your income and goings, before providing you with a maximum figure they are willing to lend. The lender will carry out a 'soft' credit check on your credit history to decide whether you're a suitable applicant. Checks with a formal application are much more rigorous.

While a mortgage agreement in principle isn't an official mortgage approval, you can use it as proof that your lender is willing to lend you money. This can be helpful when you're looking to purchase property.

**Formal application**

In a formal mortgage application, your lender will consider a variety of factors before they provide you with a mortgage offer.

- **Eligibility**

To decide if you are legible, the lender will carry out a 'hard' credit check. This allows the lender to take a full look at your report and leave a search footprint. This footprint indicates that an application for credit has been made.

Lenders will also reevaluate the amount you want to borrow and carry out ID checks on your person. Like a mortgage in principle, they will ask for a general overview of your financial position.

- **Affordability**

The lender will decide whether you can afford monthly repayments. This is known as 'stress testing'. They may ask about: household bills, childcare, holidays, socialising, hobbies, any credit repayments, and car finance repayments. They will also take a look at your bank statements to get a sense of your monthly income and outgoings.

- **Property**

The lender will send a surveyor to look at whether the property you want to buy is good enough security for the loan. If it meets lending criteria, the surveyor will confirm its legibility with the lender. 

To ensure your property has an accurate valuation, you should use an estate agent you trust. The best way to find a worthwhile agent is by comparing agents in your local area. You can do this for free by using our agent comparison tool. 

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**Extra information if you're self-employed**

If you're self-employed, you will need to provide some additional information to prove your income. You will need 2 or more years' certified accounts, SA302 forms or a tax year overview. If you're a contractor, you'll need evidence of upcoming contracts to prove your business is viable.

**Acceptance or rejection**

If your lender is happy with your application, they will approve your mortgage.

While most mortgages are accepted after a mortgage in principle, there have been instances of rejection. If your offer is rejected, it usually means the lender's hard credit check revealed something they didn't like in your report.

You can [read our blog](https://www.getagent.co.uk/blog/buying/mortgage-declined-after-agreement-in-principle "Mortgage declined after agreement in principle") to find out what you can do if your offer is rejected after receiving a mortgage in principle.

### Self-employed mortgage requirements

When applying for a mortgage you'll be asked to provide a variety of documentation in order to prove your identity and financial eligibility.
Everyone applicant will need to provide the following for review:

- A valid passport
- A UK driving licence
- A recent council tax bill
- Utility bills dated within 3 months
- 6 months of bank statements

Self-employed mortgage applicants are usually asked to provide the following additional documentation:

- Two or more years of certified accounts [SA302](https://www.gov.uk/sa302-tax-calculation) forms or a tax year overview from HMRC for past two years
- You may be asked for evidence of dividend payments or retained profits, if you're a company director

**Note**: If you're self-employed, lenders tend to prefer evidence that has been prepared by a certified or chartered accountant.

### How to increase your chances of getting approved for a mortgage

There are a few ways to increase your chances of getting approved for a mortgage:

- **Have at least 2 or 3 years of income information**

Because a self-employed income is more variable, lenders generally like to see accounts covering a minimum of two years.

- **Increase the size of your deposit**

The larger the amount of money you're able to put forward upfront, the more likely your lender will approve your application.

- **Quick fixes for credit score**

You can increase the chances of your mortgage being approved by boosting your credit score. Making payments on-time and keeping credit utilisation low, are great ways to boost your credit score in a short amount of time. Registering to vote is another quick fix, as the electoral roll proves your name and address.

- **Work with a specialist broker**

If something goes wrong with your mortgage application, a specialist broker will assess your application and will help you to quickly locate a lender that is likely to lend. If time is of the essence, a broker can be seriously useful.

- **Work with a qualified accountant**

Accountants assess your finances and locate potential shortcomings that could affect your mortgage. For example, if you don’t have separate bank accounts for business and personal spending, they can help you set them up. They can also offer advice on whether your business set-up is ideal, especially with tax efficiency.


Young couple having an intense conversation. 

Self-employed mortgages explained

Getting a mortgage when you are self-employed can seem like an uphill battle. In this article, we'll take a look at some of the  documentation you'll need to have prepared, so you're in the best position to get a mortgage.

Airbnb has taken the world by storm. Since its birth in 2008, the American company has fast become the proprietor of the world's largest online marketplace for lodgings, most of which are primarily holiday rentals.
Between July 2017 and July 2018, there were nearly 223,000 active listings in the UK alone, with upwards of 8.4 million inbound guests. A typical UK host can expect to earn [over £3,100 in annual earnings](https://www.airbnbcitizen.com/wp-content/uploads/2018/10/AirbnbUKInsightsReport_2018.pdf "Airbnb UK Insights Report 2018"): more than ever, people are realising the potential in their property.

Wherever property and profit are concerned, most people rely on mortgages to get the ball rolling. So if you are considering becoming an Airbnb host to boost your income, you'll probably have some questions about the types of mortgages available. 

People often get a buy-to-let mortgage for a rental property, but do Airbnb hosts have other options? Do mortgage lenders even allow Airbnb hosting?

### Can you put your home on Airbnb if you have a mortgage?

In some cases mortgage-holders can put their homes on Airbnb, but this is entirely dependent on the individual lender, and the type of hosting you want to do on Airbnb. 

Hosting Airbnb guests with a residential mortgage is usually only an option if you’re going to be living there too. 

Even if your lender allows hosting in theory, it’s important to get in touch with them to let them know of your plans, as they may have additional conditions or requirements that you’ll have to take into account. 

### Do you need a buy-to-let mortgage for an Airbnb property?

If your residential mortgage provider isn’t open to the idea of an Airbnb, a buy-to-let mortgage is another potential option. 

Buy-to-let mortgages are designed for people looking to let out their property on a long-term basis. If you take out a buy-to-let mortgage, you’re no longer allowed to live in the property, and it’ll now be considered to be an investment.

There are other options too, including:

- **Holiday-let mortgage**

A holiday-let mortgage is designed for people who are looking to let out their property on a short-term basis as a business. 

- **Remortgage to a different residential mortgage provider**

Just because your mortgage provider isn’t open to your Airbnb plans, doesn’t mean other lenders won’t be. 

If you’re planning on hosting guests whilst still living in the property, you could remortgage your home with a new lender. 

However, before you make this decision, it’s worth noting that if you remortgage before the end of your fixed term, you will have to pay an early repayment charge, which could be up to 5% of your outstanding mortgage. 

For most hopeful Airbnb hosts, a holiday-let mortgage is the best option, because:

- They’re designed specifically for short-term lets, with repayments based on how much you expect to earn in a year.

- You’re allowed to stay in your holiday-let property in off-seasons when you’re not renting it out.

- As your holiday-let property is considered a business, your expenses - including the interest you pay on your mortgage - can be deducted from your income before you are assessed for tax.

Unfortunately, holiday-let mortgages are harder to find than buy-to-let mortgages. It can be difficult locating a lender willing to remortgage a property to a holiday-let mortgage, let alone borrowing to buy a new property. 

While the best rates for residential mortgages start at 0.92%, the best rates for buy-to-let mortgages are higher at 1.19%, and some can only qualify for these rates with a 35% - 40% mortgage. Holiday-let mortgages are, for the most part, much more expensive with an average rate of 2-4%. Holiday-let mortgages - like buy-to-let mortgages - also require a substantial deposit, with typical deposits costing at least 25% of your home’s value. This makes them a particularly expensive investment. 

A holiday-let mortgage has one advantage over a buy-to-let mortgage however, in that you’ll be able to offset interest payments against your rental income for tax purposes. This can make a holiday-let mortgage a more attractive option for potential hosts.

Another issue with buy-to-let mortgages is their mortgage applications. Though they can technically work for Airbnb hosts, there are some complications. To work out affordability, lenders will assume that your property is being rented out on a standard tenancy of 6-12 months. If you're planning on short-term letting your property for a few days rather than 6 months, you may not meet the lending criteria for a buy-to-let mortgage.

However, if you’re planning to use Airbnb to rent out property on a long term basis, a buy-to-let mortgage might work for you. Airbnb [now offers monthly rentals on their platform](https://www.airbnb.co.uk/sublets?_set_bev_on_new_domain=1628070590_OTQ0YzJkZDk1MTQz "Airbnb Sublets"), which can generate enough income to qualify for a buy-to-let mortgage. Just remember - there’s a restriction on the number of days you can rent out property on Airbnb in certain cities, like London. If you’re planning to rent out for long periods, you may find it’s a better option to simply advertise on the open market, rather than as a holiday rental.

### Which UK lenders offer holiday-let mortgages?

While there are fewer holiday-let mortgages available than buy-to-let mortgages, that doesn’t mean there isn’t a growing demand. 

While the Coronavirus pandemic devastated large swathes of the travel industry, holiday-let rental deals were only marginally hit, with just 16 less deals available today than in March 2020 where there were 162. Indeed, there are over 21 holiday-let lenders available in the UK alone, with many building societies now inclined to provide deals to fit demand.

### Banks

There are currently 3 banks willing to lend holiday-let mortgages, with Metro Bank being the most established.

- Hodge Bank
- Castle Trust Bank
- Metro Bank

### Building societies

There are a variety of building societies that offer holiday-let mortgages, with Leeds Building Society being the most popular.

- Leeds Building Society
- Cumberland Building Society
- Furness Building Society
- Ipswich Building Society
- Monmouthshire Building Society
- Principality Building Society
- Teachers Building Society
- Vernon Building Society
- Tipton and Coseley Building Society
- Melton Building Society
- Scottish Building Society
- Mansfield Building Society
- Bath Building Society
- Furness Building Society

### How do you choose the right mortgage?

With a variety of mortgage options available, it’s important to know how to choose the right one. The choice is a difficult one: mortgages are complex in nature and there are consequences for picking the wrong one.

### Type of property

Airbnb offers hosts a choice between 3 types of accommodation to advertise through their online platforms.

Private room: When you rent out a single room in your residence.
Shared room: When your guests are sharing accommodation (not as a couple) in a dormitory style situation.
Whole place: When your guests have exclusive access to the property.

The type of accommodation you provide for guests will illuminate the best mortgage option for your property.

For example, in a private room scenario, you would be well-placed to remortgage with your residential mortgage.  As a residential landlord, you’re allowed up to 2 lodgers before your home is classed as a House in Multiple Occupancy (HMO), which would require a license. Moreover, the government Rent a Room scheme allows you to make up to £7,500 per year from a lodger without having to pay tax on the income, or even make a declaration to HMRC. Similarly, if you offer a shared room accommodation in your place of residence, you would be within your rights to apply for a residential mortgage.

If your guests have exclusive access to a property separate to your main residences, in other words a ‘whole place’ accommodation, this could meet the requirements for either a buy-to-let or holiday-let mortgage. The deciding factor in choosing between these two mortgages is how long your guests stay - and whether you’d like to use the property for any portion of the year.

### How much of the year you’re planning to have guests stay

The affordability of different types of mortgages will change depending on how much of the year you are receiving rental income, and whether you still want to ‘reside’ there (in a legal sense) for some of the year.

For example, if you are only hosting guests in the summer and winter holiday period, and wish to live in the property in off-peak seasons, a holiday-let mortgage would be ideal. However, if you have a steady supply of guests staying throughout the year, and you’re not planning on staying in the property, a buy-to-let mortgage may be more appropriate.

### Whether you’re remortgaging or buying property specifically for holiday rental

The right mortgage for your property will depend on whether you’re remortgaging or buying a new property. The costs of both can vary, so ultimately the choice lies with your bank account. A new mortgage will always require an upfront deposit, and remortgaging fees, like early repayment charges, can be expensive.

### What happens if I put my property on Airbnb without the lender's permission?

Your mortgage lender must always be informed of any financial gains you hope to make from your property, including Airbnb. Your property has been purchased using their money, so ultimately any profit you make is theirs to benefit from too. 

If your property is found to be available on Airbnb without prior permission, there could be serious consequences. In a worst case scenario, your lender could demand a full repayment of your mortgage - if you’re unable to pay it, your home may be repossessed. Most likely however, your lender will raise your interest rate or demand a weighty fee. Either outcome is undesirable, so it’s best to be open about your Airbnb plans.


Comfortable living room with sofa and television.

Do you need a buy-to-let mortgage for an Airbnb?

Airbnb is a great way for homeowners to supplement their income, but what type of mortgage is suitable for would-be hosts?

Conservatories are one of the most popular extensions homeowners like to add to their homes.  They're pretty to look at, functional, and [they add a bit of value to your property](https://www.getagent.co.uk/blog/diy/how-to-add-value-to-a-new-build "How to add value to a new build"). They are also one of the less expensive (but still costly) extensions.

There is a lot of misinformation about whether conservatories require planning permission, so we'll do our best to answer this question clearly. The short answer is: not really.

It's okay if you're confused. Conservatories are a type of extension that fall under your 'permitted development rights' - provided that they meet certain criteria.

### Do you need planning permission for a conservatory?

No you do not need planning permission for a conservatory as long it meets certain criteria. You are within your permitted development rights to build a conservatory if it:
- Meets the size and height regulations set out for your property type
- Isn't any closer to public right of ways than the original property
- Doesn't infringe on your neighbours privacy

### What are permitted development rights?

Permitted development rights are a set of planning rules that let you extend your house without needing to apply for planning permission. As long as you meet the standards set by these rules, you can build a conservatory without seeking consent from your council.  There are, however, notable exceptions for what we call Article 2(3) designated land.

### What is Article 2(3) designated land?

Article 2(3) designated land means land within areas of natural or historical significance, or both. This could include land within:

- **Conservation areas**

Any area that's managed in order to protect its architectural and historical value. England has over 10,000 conservation areas, while Scotland has around 600.

- **Areas of outstanding natural beauty**

An Area of Outstanding Natural Beauty (AONB) is land protected by the Countryside and Rights of Way Act 2000 (CROW Act). Unlike a national park, an AONB doesn't have its own planning powers.

- **Areas specified for enhancement and protection of natural beauty and amenity of the countryside**

The Secretary of State for Environment, Food and Rural Affairs for example, has the power to award areas conservation status.

- **World Heritage Sites**

A World Heritage Site is a natural or man-made structure or area that's been awarded protected status by the United Nations Educational Scientific and Cultural Organisation (UNESCO).

- **The Norfolk Broads**

The Broads are a series of man-made inland waterways located in East Anglia, Norfolk. They were designated as a World Heritage Site in 1976.

- **National Parks**

A National Park is a park in use for conservation purposes that is also protected by the UK government. There are over 10 of these in England.

### Your permitted development rights

Now we know about Article 2(3) Designated Land, let's take a look at your permitted development rights. As long as you're not in a Article 2(3) Designated area, you're allowed to build a conservatory without planning permission, as long as it meets the following criteria:

- **Your conservatory occupies, or is smaller than half of the area around the 'original house**

The term 'original house' refers to the house or dwelling as it stood on 1st July 1948 (if it was built before this date). This also includes any extensions that were built before this date.

For example, if you live in a standard semi-detached house in a city suburb, there is a good chance your house will have a back garden. If you decide to add a conservatory, it should not cover more than half of this area. This means if you have another existing extension, like a shed, you might need to remove it in order to increase the amount of space you're allowed to build in.

- **Your conservatory isn't taller than the highest part of your existing property's roof, or higher at the eaves than your property's existing eaves.**

To put it simply, your conservatory should be smaller than your house. This rule refers to the roof of your house, and its eaves (the part of the roof that hangs over the side of the house).

- **Where the conservatory comes within 2 metres of the boundary (the edge of the area of enclosed space surrounding the house), the height at the eaves needs to be below 3 metres**

Again, conservatories shouldn't impede on anyone else's space. This is another guideline to restrict your property's size and infringement on land that you don't own.

- **If your conservatory is on the front of the house or the side of the house, it should not be closer to any public right of way (footpaths) than the original house.**

Any conservatory that is closer in distance to footpaths or pavement requires planning permission.

- **As long as you don't add:**

Any extensions or accessories that could potentially infringe on your neighbour's privacy. Balconies, raised platforms, verandas are just some of the extensions that require planning permission. Microwave antenni, chimneys and roof alterations also require planning permission.

- **If your conservatory extends beyond the side of your house:**

It should have a maximum height of 4 metres, consist of a single storey, and be half the width of the original house.

- **If you have a detached house and your conservatory is a rear extension, it can't extend beyond the rear wall of your house by more than 4 metres.  If your house isn't detached, this should be less than 3 metres.**

If you own a detached house, you'll generally have more space to build extensions on. Semi-detached or terraced homes have less space for extensions, as they are attached to neighbouring properties.

- **Single-storey rear extensions can't exceed 4 metres in height.**

[According to eHow](https://www.ehow.co.uk/info_12011633_height-average-ceiling.html "The height of an average ceiling"), the average UK new build has a ceiling height of 2.4 metres. You probably won't have trouble meeting this requirement, as most conservatories conform to the height of the room they're connected to. As conservatories are restricted by the size of their eaves-to-boundary height, many standard conservatories have a sloping roof.

### What types of extensions require planning permission?

There are several types of extension that require planning permission no matter what.

- All side extensions with more than 1 storey require planning permission

- On Article 2(3) designated land, any side extensions need planning permission.

- On Article 2(3) designated land, any rear extensions with more than 1 story require planning permission.

- If you're not on Article 2(3) designated land, you can increase the size of your rear extension to 8 metres if you're living in a detached house, or 6 metres if you're living in another house. However, you will require planning permission.

### How hard is it to apply for planning permission?

As a result of the ongoing coronavirus pandemic, planning permission has been difficult to obtain. Now, as we slowly return to normality, some form of regularity has been restored to planning permission applications. Most people will find out if their application has been accepted after 8 weeks, though more complex development plans have a significantly longer wait.

Planning permission applications are difficult by nature. Not only do the relevant governing bodies, like the Environment Agency, need to be consulted, but your neighbours will be invited to view your plans through a neighbour consultation scheme. This is because extensions need to not only reflect local guidelines, but uphold the privacy of your neighbours.

### How much does the average conservatory cost?

Conservatories are a mid-tier extension. They are expensive, but not nearly as expensive as some other extensions, like a loft conversion.

So how much can you expect to pay for a conservatory in the UK?

According to Towergate Insurance, you can expect to pay at least £7000 for a conservatory.  However, [according to data from DIY website Homehow.co.uk](https://www.homehow.co.uk/costs/building-a-conservatory "Conservatory cost"), a conservatory can cost as as little as £5000, or as expensive as £75,000. While below £10,000, both minimum rates aren't exactly cheap, but their potential value (both monetary and practical) can be extremely rewarding.

### How much does planning permission for conservatories cost?

The average cost of planning permission for a conservatory is £206. However, for a new build property, a conservatory will cost £462 based on data from [the PropertyPortal's official guidelines](https://ecab.planningportal.co.uk/uploads/english_application_fees.pdf "Guide to the fees for Planning Permission in England"). The cost of planning permission in England can vary depending on the type of extension you want to build. As we're interested in conservatories, this type of extension will fall under a householder application for a single dwelling. 

### Is it worth adding a conservatory?

It usually is worth adding a conservatory, especially if you're planning on living in your home for a number of years. Not only will a conservatory provide more living space, but its general practicality is what you make of it:

- Turn your conservatory into a dining room by adding a table and chairs.
- Make your conservatory a green space with plants and wellies.
- Create the perfect area to relax with your family and friends by adding sofas and bean bags.

### Will a conservatory add value to your home?

Yes, [In 2017, Towergate Insurance conducted a study on home improvements](https://www.towergateinsurance.co.uk/home-and-property-insurance/most-profitable-home-renovations "Which home renovations add the most to your property?"), and found that conservatories can add up to 5% to the value of a property. Meanwhile property guru, Phil Spencer, [once claimed in an interview with The Telegraph](https://www.telegraph.co.uk/property/uk/phil-spencers-top-20-ways-add-value-home-get-noticed-market/ "Phil Spencer's top 20 ways to add value to your home"), that conservatories can add up to 7% of your home's value. Adding square footage is a sure way to increase the value of your home, however, you will lose garden space, which might have an adverse effect on your property's value. 

Even if we were to go with Towergate Insurance's lower figure of 5%, the average UK home sold at £250,772 (House Prices Index April 2021) would still see an increase of over £12,538.60 in value. This means that a £5000 conservatory could theoretically allow for a £7538.60 return, should you decide to sell your home further down the line.

If you want to know more about your home's value, [we offer a free house valuation tool](https://www.getagent.co.uk/online-valuation "Free online house valuation") on our site. It's great for a basic indication of your home's worth, and provides advice about the best renovations for your home, including conservatories.

### Will a conservatory boost my home's value pre-sale?

If you're thinking of building a conservatory to just boost your home's market value pre-sale, it might not be in your best interest to do so. Marketing your property during the build process can be incredibly disruptive, and the fact you might need to apply for planning permission (depending on your property type), could further complicate matters. This means it's much less likely you'll see a good return on investment if you build this extension right before you sell.

If you are thinking about selling your home, our free agent comparison tool complies the latest hard data from the Land Registry to rank your best local estate agents. A valuation from a local estate agent is always worthwhile because they take into account [all the little things that make your house a home](https://www.getagent.co.uk/blog/first-time-sellers/how-estate-agents-value "How estate agents value your home"). Most importantly, our comparison tool will help you locate agents that are not only familiar with your property type and postcode, but most likely to achieve your ideal asking price.

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Conservatories are some of the most popular extensions available for properties - but do they require planning permission? 

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