# Cape Town short-term rental regulation proposal

> Live situation record from CLSTR: https://clstr.news/situations/cape-town-short-term-rental-regulation-proposal
> Updated: 2026-09-28T10:35:00.000Z. Sources: 10. Developments: 2.

The City of Cape Town has proposed a new by-law to regulate short-term rentals, which may significantly increase costs for property owners. Under the draft Short-Term Letting By-law, all properties listed on booking platforms must register with the municipality and display a registration number on their listings.

A central provision of the proposal dictates that if a property is available for short-term rental for more than 50% of the year (183 nights or more), it will be reclassified from residential to commercial. This change would subject owners to commercial property rates, which in some instances could be more than triple current residential rates. For example, an inner-city residential property valued at R2.8 million currently incurs a monthly rate of R1,274, whereas a commercial property of the same value would be charged R3,945. 

Properties or portions of homes, such as granny flats, that are not listed on short-term letting platforms will not be affected by these specific registration or rate requirements. The public has until 5 October to submit objections and comments via the City’s website.

## Timeline

### 2026-09-28: Cape Town proposes new regulations for short-term rentals

Cape Town is proposing a new by-law requiring short-term rental registration and potentially tripling property rates for hosts renting out homes for more than 183 nights per year.

2 sources. https://clstr.news/cluster/cape-town-proposes-new-regulations-for-short-term-rentals

### 2026-09-08: UK government announces new registration rules for short-term holiday lets

The UK government will introduce new registration rules for short-term holiday lets next March to address housing shortages and improve oversight of the rental market.

8 sources. https://clstr.news/cluster/uk-government-announces-new-registration-rules-for-short-term-holiday-lets

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Cite as: Cape Town short-term rental regulation proposal. CLSTR, https://clstr.news/situations/cape-town-short-term-rental-regulation-proposal
