NatWest has updated its mortgage terms to allow landlords to rent out their properties on short-term and holiday let platforms such as Airbnb and Booking.com during void periods. This change comes under the bank’s new ‘Consent to Let’ policy, which is also designed to help owner-occupiers generate income through short-lets without needing prior permission from the bank.

Key details of the policy include:

• For buy-to-let properties, landlords can use short-term lets to cover rental void periods.
• For owner-occupiers, ‘Consent to Let’ allows them to rent out their homes without seeking permission if the rental is under a licence, not a tenancy agreement.
• The property can only be rented out for up to 90 days each year.
• Local planning or licensing rules must not be violated.
• Homes purchased through Help to Buy or Shared Ownership schemes are excluded.
• Flats in blocks where the head leasehold prohibits short-lets are not covered.

This policy aims to provide flexibility for homeowners and landlords, particularly those facing financial difficulties, by allowing them to leverage home-sharing platforms. Lloyd Cochrane, Head of Mortgages at NatWest, emphasized that this update is intended to support customers by broadening their options and enabling them to benefit from home sharing