Housing Secretary Michael Gove has announced wholesale changes to planning and regulations surrounding short lets.
His proposals include:
- planning permission will be required for future short-term lets;
- a mandatory national register;
- homeowners can continue to let out their own main or sole home for up to 90 nights a year;
- unspecified proposals which he says “will give communities greater control over future growth”.
Under the clampdown councils will be given greater power to control short-term lets by making them subject to the planning process. Gove claims “this will support local people in areas where high numbers of short-term lets are preventing them from finding housing they can afford to buy or to rent.”
Meanwhile, the new mandatory national register will give local authorities the information they need about short-term lets in their area, and the government suggests this “will help councils understand the extent of short-term lets in their area, the effects on their communities, and underpin compliance with key health and safety regulations.”
Existing homeowners will still be able to let out their own main or sole home without planning consent but only for up to 90 nights throughout a year.
The government says it is still working on the details so that the register “does not apply disproportionate regulation for example on property owners that let out their home infrequently.”
The proposed planning changes would see a new planning use class created for short-term lets not used as a sole or main home. Existing dedicated short-term lets will automatically be reclassified into the new use class and will not require a planning application. The government says it also intends to introduce associated permitted development rights – one allowing for a property to be changed from a short-term let to a standard residential dwelling, and a second that would allow a property to be changed to a short-term let. Local authorities would be able to remove these permissions and require full planning permission if they deem it necessary.
Both of these measures are focussed on short-term lets, and therefore the planning changes and the register will not affect hotels, hostels or B&Bs.
Gove says ”these changes will ensure people have more control over housing in their cherished communities. We know short-term lets can be helpful for the tourist economy, but we are now giving councils the tools to bring them under control so that local people can rent those homes as well. These changes strike a balance between giving local people access to more affordable housing, while ensuring the visitor economy continues to flourish.”
Tourism minister Julia Lopez said "short-term lets provide flexibility for homeowners and give tourists more accommodation options than ever before, but this should not prevent local people from being able to buy or rent homes in their area. The government is committed to getting the balance right to ensure both local people and our visitor economy can thrive.”
Airbnb backs Gove’s mandatory short lets landlord register
Airbnb has given its backing to a proposal from Housing Secretary Michael Gove to introduce a mandatory register of short let landlords.
The proposal has come this morning along with a raft of other ideas clamping down on short lets in England.
The proposed planning changes would see a new planning use class created for short-term lets not used as a sole or main home. Existing dedicated short-term lets will automatically be reclassified into the new use class and will not require a planning application. The government says it also intends to introduce associated permitted development rights – one allowing for a property to be changed from a short-term let to a standard residential dwelling, and a second that would allow a property to be changed to a short-term let. Local authorities would be able to remove these permissions and require full planning permission if they deem it necessary.
Amanda Cupples - the general manager for Northern Europe Airbnb - says "the introduction of a short-term lets register is good news for everyone. Families who Host on Airbnb will benefit from clear rules that support their activity, and local authorities will get access to the information they need to assess and manage housing impacts and keep communities healthy, where necessary.We have long led calls for the introduction of a Host register and we look forward to working together to make it a success.”
Her view is not shared by the trade body representing short lets providers and support companies.
Andy Fenner, chief executive of the trade group the Short Term Accommodation Association, says “we’ve been calling for a registration scheme for years, so it’s disappointing that when it finally arrives it completely fails to address the challenges the country is facing. The registration scheme could have been game changing for tourism in England had it covered all types of accommodation but, instead, what we’ve got is a missed opportunity that’s a half-way house at best. Had it been that comprehensive, politicians up and down the country would have been able to make well-informed decisions on planning. They’d have been able to see exactly how the tourist industry functioned in their local area, which is important because a one-size-fits-all approach that achieves the right balance in one place would crush the tourism in another.
Instead, the holiday let industry is doomed to continue being unfairly regarded as tourism's problem child, second-best to hotels, and unjustly taking the brunt of the blame game surrounding housing supply and affordability, despite the lack of a proper evidence base. The presumption is that, if you shut down all short term rentals tomorrow, the housing crisis would be solved but that is naive in the extreme. The holiday let industry is not responsible for the housing crisis. Its causes run far deeper than that and are centred mainly on a lack of housebuilding and the abandoning of housing targets."
Short Lets Clampdown - More campaigners back Gove
Countryside campaigning charity CPRE has given a warm welcome to Michael Gove’s clampdown on short lets.
Commenting on the move, Paul Miner, head of campaigns and policy at CPRE says “these new planning rules are good news for rural communities. Everyone deserves a home they can afford to live in. But the recent surge in short-term lets has prevented people in the countryside from finding housing they can afford to buy or rent, and in some cases local workers have been turfed out of their rented accommodation. We have long led calls on the government to introduce a second home and short-term lets register, with local authorities having the power to regulate the provision of short-term lets and to levy extra council tax on second homes. It’s pleasing to see the government has finally done the right thing by introducing these changes.
Our own research shows that the explosion in the number of homes marketed for Airbnb-style short-term lets is strangling rural communities. The worsening housing crisis is felt most acutely in rural areas which is why we’ve been calling for rapid action from the government. We want everyone in the countryside to have a fair chance in life, whatever their circumstances. To make this a reality, we need to ensure there are enough low cost homes to rent or buy in our villages and market towns.”
Airbnb reveals income and demographics of landlord hosts
Airbnb has released new figures showing that the typical host landlord makes a modest £5,500 a year by sharing their space on the platform.
While government, local authorities and activists have been strident in their criticism of short lets, Airbnb has consistently emphasised that in the UK its landlords typically rely on this income to help household budgets during the cost of living crisis. The platform says the £5,500 is the equivalent to almost two months’ additional pay for the median UK household.
Airbnb surveyed almost 4,400 landlord hosts during 2023 and found that almost a third chose to short let their properties or rooms because of the need to make ends meet. And almost 40 per cent said the income from the short letting allowed them to stay in their homes.
Nearly a third of UK host landlords are retired, and one in five work in education, health and social care or hospitality. Over nine in 10 make recommendations to their guests of local businesses to visit.
A recent study by economics consultancy BIGGAR found that spending by guests and Hosts on Airbnb boosted the UK economy by £2.9 billion and supported over 100,000 jobs across the UK in 2022/3.
“As living costs continue to bite, hosting on Airbnb is an economic lifeline that is helping people to pay their bills and afford the things that are important to them. When holidaymakers make the decision to book an Airbnb, it’s local families, businesses and communities that benefit. We are proud of the role our guests play in helping everyday people across the country live more comfortably” says Amanda Cupples, general manager for the UK and Northern Europe at Airbnb.