Use AirBNB, make some spare cash for Christmas.
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Are there any restrictive laws to the use of Airbnb in the UK like in Germany?
In Germany for example (Berlin specifically) you can only rent a room for Airbnb in the same apartment that you live in, and not a whole apartment for instance. I think the reason for this is to help alleviate the housing issue.
There are also tax responsibilities you have to take into account.
I believe criminal charges can be brought if a property is in Greater London and the resident lets any part of it out on a short-term basis for more than 90 days in any 365-day period (planning).
Other than that I'm not sure. Usual matters to consider though are insurance, tax, mortgage, nuisance.
You are right. Insurance, tax and more importantly your neighbors are important to consider.