Gove unveils curbs on short-term lets

Steve Lumley·23 February 2024·5 min read

Gove unveils curbs on short-term lets

The government has announced new planning reforms that will give councils more power to regulate short-term lets in their areas - to prevent local communities from being 'hollowed out'.

Short-term lets, such as those offered by platforms like Airbnb, have become a popular option for visitors and hosts in the UK and now play a major role in the country's sector.

However, they can also have negative impacts on local communities, such as reducing the availability and affordability of housing, causing noise and nuisance, and compromising health and safety standards.

'Short-term lets can play an important role'

Michael Gove, the Secretary of State for Levelling Up Housing and Communities, said: "Short-term lets can play an important role in the UK's flourishing tourism economy, providing great, easily accessible accommodation in some of the most beautiful parts of our country.

"But in some areas, too many local families and young people feel they are being shut out of the housing market and denied the opportunity to rent or buy in their own community."

He added: "So, the government is taking action as part of its long-term plan for housing.

"That means delivering more of the right homes in the right places and giving communities the power to decide.

"This will allow local communities to take back control and strike the right balance between protecting the visitor economy and ensuring local people get the homes they need."

Owners of short-term lets will need planning permission

To address these issues, the government will introduce new measures that will require the owners of short-term lets to obtain planning permission from the local authority.

This will allow councils to limit the number and duration of short-term lets in their areas, and to enforce rules on noise, waste and fire safety.

The government has also announced the creation of a national register of short-term lets which will provide local authorities with data on the location, size and frequency of short-term lets in their areas.

The new register will also help councils monitor and manage the effects of short-term lets on their communities, and to ensure compliance with relevant regulations.

'Introduction of a short-term lets register is good news'

The announcement has been welcomed by Amanda Cupples, Airbnb's general manager for northern Europe, who said: "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."

She adds: "We have long led calls for the introduction of a host register, and we look forward to working together to make it a success."

Homeowners who occasionally let out their own main or sole home

However, the government's new planning rules will not affect homeowners who occasionally let out their own main or sole home for up to 90 nights a year without planning permission.

There will also be a discussion on how to exempt property owners who let out their home infrequently from the national register.

The government has stated that the new planning reforms are part of a long-term plan to protect local housing and communities from the adverse effects of short-term lets, and to ensure that short-term lets contribute positively to the UK's visitor economy.

'Short-term lets provide flexibility for homeowners'

Julia Lopez is the UK's tourism minister, and she 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."

The government is also planning to create new permitted development rights for property owners to switch easily between short-term lets to a standard residential dwelling.

However, councils will be able to revoke these rights and demand full planning approval if needed.

Since the new rules are only for short-term lets; hotels, hostels and B&Bs are not impacted by the planning reforms and the new national register.

'Mandatory register will affect some student landlords'

Simon Thompson, the managing director of Accommodation for Students, said: "Undoubtedly, the new rules and a mandatory register will affect some student landlords.

"Those affected will be the student landlords who let to students and university staff for various reasons for shorter periods.

"Also, there will be lots of landlords who have switched from ASTs to short-lets and they will be wondering what to do next."

He added: "However, for me, this is another government proposal that we will have to watch carefully because it, along with the Renters (Reform) Bill, will effectively remove a landlord’s property rights which cannot be right."