New rules for short-term holidays in the UK were announced by the government on Monday, with the aim of reining in a sector that activists say is “out of control”.
Ministers have proposed introducing a holiday rental property registration system amid concerns that local residents will be forced out of their communities as the number of short-term let properties explodes. We also plan to make these requirements mandatory. Obtain planning permission.
However, many activists argue that the planned changes do not go far enough.
So what’s the problem?
In recent years, the number of people converting their properties into vacation rentals or short-term rentals has increased dramatically. Much of this has been facilitated by the proliferation of platforms like Airbnb and Booking.com, which have arguably made it easier to do this as a potentially lucrative and often largely unregulated side hustle.
The trend then further accelerated as the coronavirus pandemic triggered a boom in domestic vacations and short breaks. This is something that continued during the cost of living crisis.
At the same time, the tax regime for buy-to-let is now less favorable following changes made in 2015, which has led to many landlords and investors leaving the sector, particularly in popular destinations such as the Lake District and Cornwall. This means that the company has switched to customer-oriented services.
As a result of all this, the campaign group said generation rent“Since 2019, more than 35,000 private rental homes have been lost to Airbnb-style short-term rentals, resulting in the devastating loss of vacation homes and the displacement of families from their communities.”
Registered holiday homes and second homes will likely have a negligible impact on housing supply across England, compared to the 682,000 new homes added to the national housing stock between 2019 and 2022. That means 26,000 homes. However, the effect is highly concentrated, with 80% of recent holiday home growth occurring in 25 local council areas.
There are also problems with anti-social behavior associated with short-term rentals, such as fly-slinging, trash bags and loud parties.
What has the government announced?
He admitted there was a problem. Housing Secretary Michael Gove said on Monday that in some areas “too many local families and young people are feeling excluded from the housing market and being denied the opportunity to rent or buy in their communities”. said.
They have been discussing the issue and have now announced a review of the rules in England.
There are two main suggestions. Future short-term rentals will require planning permission, which the government claims will give councils powers to “control” them. The proposed changes would create a planning “use class” for short-term rentals that are not used as a sole or primary residence.
Meanwhile, a compulsory national register could be set up to provide local authorities with information about short-term rentals in their area, and in theory, regulations regarding short-term rental property usage, local impact, health and safety. It will be possible to monitor whether the rules are being followed. met.
More detailed information is expected to be set out by ministers in the coming months, with the government saying the reforms will be introduced “from this summer”.
I have a feeling of “but”…
Yes, many commentators are happy to see the government taking action, but some have pointed out that the inaction in the restructuring, or what they claim, is a major flaw.
The “future short-term rental” aspect of the first proposal is important. The government said existing short-term rentals “will be automatically reclassified into the new use class and no planning application will be required”. Generation Rent said that granting the existing leave would automatically result in a continuation permit, adding: “We risk closing the stable doors after the horses have run out,” adding that thousands of homes have already been lost. He said he would do nothing about it.
Meanwhile, ministers said homeowners would still be able to move out of their homes for up to 90 nights a year without planning permission. The government was considering whether to limit the number of overnight stays per year to 30, 60 or 90 nights.
In addition to this, the government also said it was looking at ways to ensure the register “does not apply disproportionate regulations to property owners who do not often open their homes, for example”.
The fact that the government’s announcement included positive quotes hailing Airbnb’s registration as “good news for everyone” has led some commentators, like Jonathan Ely of the Financial Times, to captured by. Post to X That “tells you everything you need to know about the bill’s pointlessness.”
I wonder if some regions have already cracked down on vacations?
yes. For example, in Scotland new rules It came into effect on October 1st last year. there, people Must have a license Before offering short-term rentals, it is a criminal offense to operate without one. You could be fined £2,500 and banned from applying for a license for a year. This rule also applies if someone occasionally rents out a spare room while on vacation or sublets their property.
What do campaigners say needs to be done?
Groups such as Generation Rent say the government should reconsider its approach and give parliament the power to make participation in the furlough scheme compulsory.
It also calls for the introduction of local caps on the number of holiday homes that can operate in certain areas, particularly those where housing affordability issues are particularly acute.
There is already precedent for a domestic licensing system. Large-scale private rental housing is subject to fairly strict regulations. A house with multiple occupations – In England and Wales.
