C1 vs C3 what’s the implication for serviced apartment operators?

In light of debate over whether serviced apartments operating under a C3 use class could be viewed as second homes, and therefore attract up to 100% increases in Council Tax, we took a look at the difference between C1 and C3 licences and the implications for operators, along with who pays Council Tax and who pays business rates..

Local councils differ in how strictly they interpret or enforce these rules, especially in areas with local housing pressures or high levels of short-term rental activity. Until clarification comes from government, if any ASAP Member has been affected by this, please get in touch and join us in the conversation.

>> Click here for guidance on the differences <<

How the Renters’ Reform Bill in England Could Affect C3-Use Serviced Apartment Operators

Operators under C3 planning may be caught up in legislation designed for long-term private rentals – despite running a short-let business model. This could limit flexibility, increase legal risks, or prompt reclassification pressure from local authorities.

If this may affect your operations, or you’d like to share your experience and help shape ASAP’s response, please contact admin@theasap.org.uk.

Renters’ Reform Bill

>> Click here for more information on how serviced apartment operators may be affected <<

Council Tax vs Business Rates

We have been contacted by many Operators uder C3 residential licences who have been notified their Council Tax will be increased by as much as 100% as their apartments have been classified as ‘second homes’

>> Click here for general rules on which accommodation attracts Council Tax vs Business Rates <<