Running a bed and breakfast or small hotel is a popular ambition, particularly for people who enjoy looking after others and live somewhere visitors want to be. It can be a rewarding way to earn a living from a characterful property, and many guests choose independent places precisely because they want a personal welcome rather than a chain.
It is also a demanding business. You are responsible for guests’ safety while they sleep under your roof, you will be cooking breakfast every morning in busy periods, and there is a surprising amount of regulation to get right before your first guest arrives. On top of that, you are competing for bookings with large online travel agents and with every other property in the area.
This guide explains the main steps to starting a B&B, guest house or small hotel in the UK, with a focus on the legal and practical requirements, setting prices, working with booking sites and making sure guests can find and book with you directly.
Key points
- Anyone who provides paying guest accommodation is responsible for fire safety under the Regulatory Reform (Fire Safety) Order 2005 in England and Wales and must carry out a fire risk assessment.
- If you serve breakfast or any other food, register as a food business with your local council at least 28 days before you start.
- Check planning permission, and whether you will pay business rates or council tax, with your council before you commit.
- Selling alcohol, even only to residents, needs a licence, and in Scotland most short-term lets need a licence from the council.
- England’s short-term let register is expected to begin in March 2027, and Wales requires all visitor accommodation, including B&Bs, to register by 31 March 2027.
- Booking sites bring reach but charge commission, so build direct bookings through your Google profile, website, reviews and AI search visibility.
In this guide
- Decide what kind of property you are running
- Planning permission and change of use
- Fire safety: your most important responsibility
- Food business registration and hygiene
- Business rates, council tax and tax
- Licences: alcohol, music and TV
- Short-term let rules in England and Scotland
- Pricing your rooms and displaying prices
- Online travel agents versus direct bookings
- Quality grading and trust signals
- Local SEO: getting found by guests nearby and on the way
- AI search: how travellers now ask where to stay
- Frequently asked questions
- Final thoughts
Decide what kind of property you are running
“B&B” and “small hotel” cover a wide range of businesses, and the category you fall into affects planning, rates, fire safety and licensing.
- A B&B in your own home, where you live in the property and let a few spare rooms, with letting secondary to the use of the house as your home.
- A guest house, which is usually run more as a business, often with more rooms and sometimes with owners living on site.
- A small hotel or inn, typically with more rooms, possibly a bar, restaurant or function space, and staff.
Think carefully about your guests too. Walkers and cyclists, wedding guests, business travellers, couples on short breaks and families each need different things, from drying rooms and packed lunches to good Wi-Fi, parking or family rooms. Being clear about who you are for makes everything else easier, from the rooms you create to how you describe yourself online.
Planning permission and change of use
If you are buying or converting a property, check planning first. In England, hotels, boarding houses and guest houses are generally treated as a different use class from ordinary dwellings, so turning a house into a guest house or hotel may need planning permission for a change of use.
Letting one or two rooms in your own home, where it remains mainly your home, may not need permission, but the line is not always clear. Factors such as the number of rooms, how much of the house is used by guests, extra parking and the impact on neighbours can all matter. Listed buildings and properties in conservation areas bring extra controls on alterations.
The safest approach is to ask your local planning authority before you buy or start work, and to get any answer in writing. Building regulations may also apply to alterations, particularly those affecting fire safety, such as new en-suite bathrooms, layout changes and fire doors.
Fire safety: your most important responsibility
In England and Wales, the Regulatory Reform (Fire Safety) Order 2005 applies to premises that provide paying guest accommodation, including small B&Bs and guest houses. The person in control of the premises, usually the owner or operator, is the “responsible person” and must carry out a suitable and sufficient fire risk assessment and put appropriate fire safety measures in place. Scotland and Northern Ireland have their own fire safety legislation with similar principles.
The government guide for small premises
The Home Office publishes a guide called Making your small paying guest accommodation safe from fire, which has been updated since it was first published, so check you are using the current version. It is aimed at small premises, such as houses and cottages on the ground floor or ground and first floors that sleep up to 10 people with no more than four bedrooms on the first floor, and individual flats. Larger or more complex premises, such as guest houses on several floors or small hotels, will need more detailed guidance and often a professional fire risk assessor.
The guide covers areas such as:
- Carrying out and recording your fire risk assessment, and reviewing it regularly and after any significant change.
- Fire detection and alarms, typically interlinked mains-powered smoke and heat alarms with battery backup, so that all of them sound together.
- Escape routes, which must be kept clear and lead to a place of safety, with exit doors that open from the inside without a key.
- Fire doors, as rooms such as kitchens and lounges may need fire-resisting doors to protect the escape route.
- Emergency lighting or alternatives, so guests can find their way out if the power fails. In the smallest premises, torches and plug-in night lights may be acceptable instead, but larger premises are likely to need emergency escape lighting.
- Information for guests, such as what to do if the alarm sounds.
You can carry out the assessment yourself for a small, simple property if you feel competent to do so, but you remain responsible for it either way. Your local fire and rescue service can often provide advice and may inspect premises.
Gas and electrical safety
If you have gas appliances, have them checked every year by a Gas Safe registered engineer and keep records. Electrical installations and appliances should be inspected and tested regularly by a qualified electrician. Fit carbon monoxide alarms in rooms with fuel-burning appliances.
Tip
Ask your local fire and rescue service for advice before you finalise building work. Fitting fire doors, alarms and emergency lighting during a renovation is far cheaper and less disruptive than adding them afterwards.
Food business registration and hygiene
If you serve breakfast or any other food to guests, you are running a food business. You need to register with your local council at least 28 days before you start serving food. Registration is free, and you can register a food business through the Food Standards Agency, which passes your details to the right council.
You will also need:
- A written food safety system for your breakfasts, based on HACCP principles. Many small businesses in England use the Food Standards Agency’s Safer Food, Better Business pack.
- Suitable food hygiene training for anyone preparing food.
- Clear allergen information, as guests must be able to find out about the 14 major allergens in the food you serve.
Once you are trading, an environmental health officer will inspect your kitchen and give a food hygiene rating. A high rating is a useful trust signal, and in Wales and Northern Ireland, displaying it is a legal requirement for most food businesses.
Business rates, council tax and tax
Whether you pay business rates or council tax depends on how your property is used.
B&Bs in your own home
A B&B is generally liable for business rates. However, you will usually pay council tax instead if all of these apply: you do not intend to provide short-stay accommodation for more than six people at the same time, you live in the property as your only or main home, and letting rooms is secondary to using the property as your home. If you exceed those conditions, the part of the property used for the business may be assessed for business rates while your private accommodation stays in council tax.
Self-catering and holiday lets
If you also run self-catering units, such as a cottage or annexe, different thresholds apply:
| Nation | Available to let | Actually let |
|---|---|---|
| England | At least 140 days in the coming year | At least 70 days in the previous 12 months |
| Wales | At least 252 days in the coming year | At least 182 days in the previous 12 months |
If a self-catering property does not meet these tests, it is likely to be liable for council tax instead, and in Wales some councils charge premiums on second homes. The rules are detailed and are reviewed from time to time, so check with the Valuation Office Agency and your council.
Small business rate relief may reduce your bill if your property has a low rateable value. Speak to an accountant about income tax, VAT registration if your turnover reaches the threshold, and how to treat the costs of a property that is also your home.
Licences: alcohol, music and TV
Alcohol
If you want to sell alcohol, including a glass of wine with dinner or drinks from an honesty bar, you need a licence. In England and Wales, this means a premises licence from your local council under the Licensing Act 2003, and sales must be authorised by a designated premises supervisor who holds a personal licence. Selling only to residents does not remove the need for a licence. Scotland has its own licensing system under the Licensing (Scotland) Act 2005, so check with your council’s licensing board.
Offering a complimentary drink on arrival is treated differently from selling alcohol, but if the cost is effectively included in the room rate, it may count as a sale. Ask your licensing authority if you are unsure.
Music and television
Playing music in public areas, such as a breakfast room or bar, usually needs TheMusicLicence. If guests can watch live television in their rooms, you need a TV licence, and there are specific arrangements for hotels and guest houses.
Short-term let rules in England and Scotland
England
The Levelling-up and Regeneration Act 2023 gave the government powers to create a registration scheme for short-term lets in England. The government now expects the mandatory national scheme to begin in March 2027, but at the time of writing it has not published all of the operational details, such as what information will be required. When it announced the scheme in 2024, the government said the register would not affect hotels, hostels or B&Bs, so it is aimed mainly at holiday lets and similar short-term lets. If you also let a self-catering cottage, annexe or flat in England, keep an eye on official announcements and be ready to register when the scheme opens.
Scotland
In Scotland, all short-term lets have needed a licence since October 2023, when the deadline for existing hosts passed. Each premises used for short-term lets needs a licence from the local council, and the scheme covers guest houses as well as home sharing and holiday lets. Some accommodation is excluded, including many hotels with planning consent to operate as a hotel and premises licensed under the Licensing (Scotland) Act 2005 for overnight stays. Whether a particular B&B needs a licence depends on its circumstances, so read the Scottish Government’s guidance for short-term let hosts and operators and check with your council. Some areas in Scotland have also introduced or proposed control areas, which can require planning permission for certain short-term lets.
Wales and visitor levies
In Wales, anyone who provides overnight visitor accommodation, including B&Bs, guest houses and hotels, must register with the Welsh Revenue Authority by 31 March 2027, even if their council does not introduce a visitor levy. Welsh councils can choose to introduce a levy, but not before April 2027. In Scotland, councils have powers to introduce a visitor levy under the Visitor Levy (Scotland) Act 2024, and some, including the City of Edinburgh Council, already charge one. If you operate in Wales or Scotland, check with your council whether a levy applies or is planned in your area and what it means for your pricing and booking terms.
Pricing your rooms and displaying prices
Pricing is a balance between covering your costs, matching what guests in your area expect and filling rooms across the year.
- Work out your costs per occupied room night, including laundry, breakfast, cleaning, toiletries, utilities, commission, card fees, insurance and a share of maintenance.
- Research local rates for similar properties at different times of year, including weekends, school holidays and local events.
- Set seasonal and event pricing, with higher rates when demand is strong and offers for quieter periods.
- Decide on minimum stays for busy weekends, and consider whether single-night stays are worth it after cleaning and laundry costs.
- Set a clear cancellation policy, and consider a non-refundable rate at a lower price.
Be transparent about the total price. Under the consumer protection rules in the Digital Markets, Competition and Consumers Act 2024, in force since April 2025, headline prices should include any unavoidable fees, rather than adding compulsory charges at the end of the booking process, which is known as drip pricing. Larger establishments may also be required to display their prices to guests on arrival, so check the rules that apply to your property.
Online travel agents versus direct bookings
Online travel agents, such as Booking.com and Expedia, can put your property in front of guests who have never heard of you. For many new B&Bs, they are an important early source of bookings and reviews. However, they charge commission on each booking, which varies by platform, contract and the visibility options you choose, and can take a significant share of your room revenue.
| Channel | Advantages | Drawbacks |
|---|---|---|
| Online travel agents | Large audience, trusted by guests, easy to start | Commission on every booking, less control over the guest relationship |
| Your own website | No commission, full control, direct relationship with guests | Needs investment in a booking engine and visibility |
| Google hotel results | Shows your rates beside other channels, can link straight to your website | Usually needs a booking engine or channel manager connected to Google |
| Phone, email and repeat guests | No commission, loyal guests | Takes time to build |
Making direct booking easy
- Use an online booking engine on your website, so guests can see availability and book instantly.
- Use a channel manager if you list on several platforms, so your availability is updated everywhere at once and you avoid double bookings.
- Connect to Google’s hotel listings, which can show your direct rate beside the online travel agents. Many booking engines and channel managers can link your rates and availability to Google, including free booking links.
- Give guests a reason to book direct, such as flexible cancellation, a welcome treat, early check-in when possible or the best available rate.
Tip
Check the parity terms in your online travel agent contracts before offering lower direct rates. Extras such as a free upgrade or welcome gift are a common way to reward direct bookings.
Quality grading and trust signals
Quality assessment schemes give guests an independent view of your property. VisitEngland runs quality assessment schemes for B&Bs, guest accommodation, hotels and self-catering, carried out by trained assessors who award star ratings and awards. The AA also grades hotels and guest accommodation. Wales and Scotland have their own arrangements through their national tourism bodies.
Grading is optional, but it can help you understand how guests will see your property and gives you something credible to show on your website and listings. Other useful trust signals include recent guest reviews, a strong food hygiene rating, clear accessibility information and local tourism or hospitality awards.
Local SEO: getting found by guests nearby and on the way
Guests often search for somewhere to stay by place: “B&B near me”, “guest house in [town]”, “hotel near [venue]”, “dog-friendly B&B [area]” or “small hotel with parking [town]”. They compare photos, reviews and prices on Google Maps and in Google’s hotel results before choosing whether to book with you or through a booking site. Appearing well in those local results is one of the most effective ways to win more direct bookings.
Google Business Profile
Your Google profile is often the first impression a guest gets. Make sure it includes:
- The correct primary category, such as bed and breakfast, guest house or hotel.
- Accurate contact details, check-in and check-out times and a link to your booking page.
- Amenities and attributes, such as free parking, Wi-Fi, breakfast, pet-friendly and accessibility features.
- Plenty of recent, honest photos of every room type, bathrooms, breakfast, communal areas and the outside, so guests know what to expect.
- Your rates and availability, connected through your booking engine or channel manager where possible.
Reviews
Reviews on Google and on booking platforms strongly influence where people stay. Ask guests at checkout or in a short follow-up email whether they would leave a review. Reply to every review, thanking guests for kind words and responding calmly and constructively to criticism.
The same B&B details on every travel listing
Your business name, address, phone number and website should match everywhere: your website, Google profile, booking platforms, tourism websites, local directories and social media. Inconsistent details confuse search engines and guests.
A website with rooms, local guides and FAQs
A fast, mobile-friendly website with a page for each room type, clear prices, a booking engine and honest policies helps both guests and search engines. Local guides to walks, attractions, wedding venues, places to eat and how to get to you can help you appear for the searches guests make when planning a trip.
Local links
Mentions and links from your local tourism body, wedding venues, event organisers, attractions, walking and cycling websites and local news help show search engines that you are an established part of the area.
If you would rather focus on your guests than on managing your online presence, specialists can take care of it, for example through SEO for hotels and B&Bs. Profile improvements can help within weeks, but stronger map rankings and visibility usually build over three to six months, so it is worth starting well before your busy season.
AI search: how travellers now ask where to stay
More travellers are asking AI assistants such as ChatGPT, Gemini, Perplexity, Microsoft Copilot and Google’s AI Overviews for recommendations on where to stay. Their questions are often detailed:
- “Can you recommend a quiet B&B near the Pembrokeshire coast path that welcomes dogs?”
- “What is a good small hotel within walking distance of York station?”
- “Where can we stay near a wedding venue in the Cotswolds for two nights with parking?”
- “Is there a guest house in the Lake District with a drying room and packed lunches for walkers?”
These tools build their answers from information they can find and cross-check across the web, which is why answer engine optimisation, or AEO, matters for accommodation. They tend to rely on:
- Consistent information about your location, facilities and policies across your website, Google profile, booking platforms and tourism listings.
- Reviews that describe specific experiences, such as a great breakfast, a quiet location or a warm welcome for dogs.
- Clear descriptions of your rooms and facilities, including accessibility, parking, pet policies and dietary options at breakfast.
- FAQs on your website, answering questions such as check-in times, whether you take dogs, whether there is parking and how far you are from the station or key venues.
- Mentions on reputable sites, such as tourism bodies, local news, walking guides and venue websites.
If you want to be recommended for dog-friendly breaks or walking holidays, make sure that is obvious and consistent in every place an AI tool might look.
Frequently asked questions
Do I need planning permission to start a B&B?
It depends on the property and how you use it. Letting a room or two in your own home may not need permission, but turning a house into a guest house or hotel often does. Ask your local planning authority before you commit.
Do I need a fire risk assessment for a small B&B?
Yes. In England and Wales, anyone providing paying guest accommodation must carry out a fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005. The government’s guide for small paying guest accommodation explains what this involves.
Will I pay business rates or council tax?
A B&B in your own home usually pays council tax if you accommodate no more than six guests at a time, live there as your main home and letting is secondary to the home. Otherwise business rates are likely to apply to the business part of the property.
Do I need a licence to serve guests a drink?
Selling alcohol, even only to residents, needs a licence. In England and Wales, that means a premises licence and a designated premises supervisor with a personal licence.
Should I list on Booking.com and Expedia?
Many new properties do, because they provide reach and early reviews. Factor commission into your pricing, and build direct bookings alongside them so you are not dependent on one channel.
Final thoughts
A successful B&B or small hotel starts with getting the foundations right: suitable premises, the right planning position, a thorough fire risk assessment, food business registration, the right licences and a clear understanding of rates and tax. Keep an eye on the short-term let and visitor accommodation rules where you operate, as they are changing.
Once you are open, consistency wins guests. Keep your Google profile, website and listings accurate, show your rooms honestly, look after every guest and encourage reviews. Over time, that steady groundwork makes it easier for travellers, search engines and AI assistants to recommend you, and brings more guests to book with you directly.
