The new legislation will require Council approval for short-term holiday lets and will introduce a holiday lets register.

The UK government has considered Michael Gove's proposals to introduce new regulations restricting short-term lets in England positively. The new rules require landlords to seek planning permission for short-term lets. This new law will introduce a distinct use category. Property owners will have to seek local authority approval for short-term holiday rentals, the exceptions being primary residences rented for 90 days or fewer annually. A national register is also proposed to furnish councils with relevant information on short-term lets within their jurisdictions. These initiatives are being introduced to balance the advantages of short-term lets in the tourism sector and ensure housing accessibility for residents.

Are Airbnb-style holiday lets displacing residents?

Introducing the registration scheme for holiday lets is a response to mounting worries that a surge in short-term property rentals is leading to the displacement of local residents.

A closer look at the core of the problem

In recent years, there has been a massive increase in individuals converting their properties into holiday rentals and short-term lets. Easy access to platforms like Airbnb and similar sites has fuelled this trend. These platforms allow property owners to get into lucrative agreements that rarely come under stringent scrutiny by regulatory bodies. The onset of the coronavirus pandemic further accelerated this trend, as it triggered a surge in domestic holidays and short breaks. This trend has persisted well past the pandemic and works well despite the ongoing cost-of-living crisis.

Has landlord taxation driven the surge in Airbnb holiday-style short-term lets?

The changes in tax condition introduced in 2015 created less favourable business conditions for buy-to-let investments. Many landlords and investors have since moved away from this sector and now cater to the tourist market to replace income lost to taxation. This shift is noticeable in popular destinations like the Lake District and Cornwall. A few experts have stated that the consequence of this trend is that families are forced out of their communities as homes are rented out to holiday lets.

Is the UK holiday growth problem national or regionalized?

The answer to this question is that while registered holiday lets and second homes have a minimal impact on the overall housing supply in England, their influence is heavily concentrated. A large percentage of the recent growth in holiday homes has happened in just 25 local council areas. Another area of concern is the antisocial behaviour of those using these. Short-term lets. Common complaints include illegal waste disposal, excess rubbish generation, and partying with complete disregard for the neighbours and surroundings.

How has the government responded to these challenges?

The government has officially recognised the existence of the housing issue. The Housing Secretary Michael Gove stated that in certain areas, many local families feel they are being denied the opportunity to rent or buy in their community. Following consultations on this matter, the government has unveiled a significant overhaul of the rules in England.

There are two primary proposals:

Planning permission must be sought for all future short-term lets. This move aims to empower councils with greater authority to control such rentals. The proposed adjustments would establish a planning "use class" specifically for short-term lets, which is not utilized as a primary residence.

Also, A mandatory national register will provide local authorities with relevant information regarding short-term lets in their respective areas. This initiative will allow authorities to monitor their usage, assess their impact on the local area, and ensure compliance with health and safety regulations.

What is the timeline for the new shortlist laws, the planning consent, and mandatory registration requirements?

Ministers will provide more details of these proposed reforms in the upcoming months. These will include a timeline for implementing various measures such as establishing the national register, introducing the planning use class for short-term lets, and delineating individual permitted development rights. These changes are slated to be introduced starting this summer.