Government moves to change planning rules for short-term lets

New government proposals could see owners of second homes require planning permission if they want to use their property as a holiday let in English tourist hotspots.

Related topics:  Landlords,  BTL,  Holiday Lets
Property | Reporter
13th April 2023
holiday home 2
"This new world of ultra-flexible short-term lets gives tourists more choices than ever before, but it should not come at the expense of local people being able to own their own homes and stay local"

A consultation launched by the Department for Levelling Up, Housing and Communities will look at the increase in the number of short term lets in certain areas, such as coastal towns, national parks and some cities and the impact this has had on the availability and affordability of homes to buy or to rent for local people.

However, the Government said councils could choose not to use the planning controls, and that they would only apply in England.

The planning changes would be introduced through legislation later in the year if passed through the consultation stage.

Theo Lomas, from Airbnb, urged the government to strike a balance between protecting housing and supporting everyday families.

He adds: "Airbnb has long called for a national register for short-term lets and we welcome the Government taking this forward.

"We know that registers are clear and simple for everyday hosts to follow while giving authorities the information they need to regulate effectively. The vast majority of UK hosts share one home, and almost four in 10 say the earnings help them afford the rising cost of living."

Culture Secretary, Lucy Frazer said:

"This new world of ultra-flexible short term lets gives tourists more choice than ever before, but it should not come at the expense of local people being able to own their own home and stay local.

"The Government wants to help areas get the balance right, and today we have an incomplete picture of the size and spread of our short term lets market.

"This consultation on a national registration scheme will give us the data we need to assess the position and enable us to address the concerns communities face."

Michael Gove, Secretary of State for Levelling Up Housing and Communities, said:

“Tourism brings many benefits to our economy but in too many communities we have seen local people pushed out of cherished towns, cities and villages by huge numbers of short-term lets.

“I’m determined that we ensure that more people have access to local homes at affordable prices, and that we prioritise families desperate to rent or buy a home of their own close to where they work.

“I have listened to representations from MPs in tourist hot spots and am pleased to launch this consultation to introduce a requirement for planning permissions for short term lets.”

Andy Fenner, CEO of the Short Term Accommodation Association, said:

“We support a registration scheme but introducing a planning permission requirement completely ignores the contribution short-term rentals make to the economy.

“Many thousands of small businesses will be affected by these changes if the Government sees them through.

“It’s important this issue doesn’t become a political football when the short-term rental sector is a key reason why the UK is so attractive to international and domestic tourists. Its role in providing local employment is routinely overlooked and measures to solve housing shortages should instead be focused on building new homes in sufficient numbers.

“We’ve seen similar measures introduced in Edinburgh but the effect was a damaging reduction in short-term rental availability, with many forced to exit the market.

“We need the Government to get round the table and identify an alternative way forward that doesn’t do as much harm to the tourist industry and local jobs.”

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