Banning of Landlords using Airbnb?

Banning of Landlords using Airbnb?

9:39 AM, 27th June 2022, About 2 months ago 16

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Hi Everyone, I’ve just read in ‘The Daily Mail and The Telegraph’, that Gove (in all his wisdom!), is now proposing banning Landlords from using short-term holiday let web portals such as Airbnb. He is also considering implementing the minimum term for holiday lets to be 90 days or over!

The Daily Mail “The amendment to the Levelling-Up and Regeneration Bill would force anyone planning to rent out their home short-term to seek planning permission under change of use”.

The Telegraph “The proposals would stop second homeowners from renting out their properties as short-term holiday lets”.

Some Landlords have considered Airbnb to negate s24 – Talk about kicking us all when we are down!!

Glasgow council is looking the regulate Airbnb and set up a licencing scheme for short-term rental

Ann



Comments

Debra

11:14 AM, 27th June 2022, About 2 months ago

It’s inevitable really. Look at what’s happened in other countries, where short term lets under portals such as AirBnb have been regulated and made to comply with the normal rules of holiday let businesses (usually rules about the furnishings that should be provided and general safety and liability insurance as well as reporting of income and paying relevant local taxes) and AirBnb forced to report on their property owner's accounts so they can no longer avoid paying taxes.
People who run holiday lets as a business have all sorts of safety regulations to comply with - they don't just throw some furniture in a normally long term let property and then let it out as a holiday let. Nor do they just let out a home of their own which may not actually be safe - you can use an unsafe home as a holiday home for yourself if you want but that doesn't mean you can let it to other people and put them in danger. There are standards to adhere to and they’re not the same as those for an owner occupier or even a long term let to a tenant.
The over 90 day thing means it has to be let out as a short term let for at least 90 days per year doesn’t it? This is clearly to stop people claiming they don’t have to pay council tax because it’s a holiday let when it really isn’t.
Change of use I also understand because people who live in residential areas are experiencing all sort of problems because of landlords letting normally residential flats or houses as holiday lets and people on holiday aren’t bothered about disturbing the locals. Not all areas are necessarily suitable for holiday lets.
Any landlords thinking of using holiday lets to ’negate section 24’ would have to put the income through a business and so would have to abide by all the proper holiday let rules anyway, so that would still be possible.

What is it you want to do that you think won’t be possible in future if the changes Gove mentions are implemented?

Jerry Stone

11:44 AM, 27th June 2022, About 2 months ago

I think that you have possibly miss understood what he is proposing.
It’s been well reported in the Planning Press.
My understanding is that it is in effect to combat what are effectively second homes that proport to be holiday lets.
This means that they can register as businesses and gain small business rate relief without actually letting them out as a genuine business.
Hence why it has to be available to let for a minimum of at least 90 days.
Therefore it’s a proper holiday let.
That is my humble understanding.

AnthonyG

12:02 PM, 27th June 2022, About 2 months ago

My rough understanding from the news over the last few months is that there are already restrictions in short term letting, usually over 90 days a year, in places such as London. Many leases also prohibit short term letting without freeholder permission.

I can see that it is another area where owners’ freedom is being increasingly restricted by Government. On the other hand, these are pretty popular policies in second home hotspots where local people feel priced out of the market.

Maybe it will be like another licensing scheme, with short term lets paying local authorities for the change of use.

SimonR

12:47 PM, 27th June 2022, About 2 months ago

They are not banning landlords from using air bnb what they are looking at doing is stopping landlords from signing a tenant up to a 6 month AST outside of prime tourist times. The whole premise of the reform act is to give tenants some security when renting.

Don't see anything wrong with making Landlords choose between long term tenants with an AST or short term holiday lets

Sheralyne Stamp

13:10 PM, 27th June 2022, About 2 months ago

I feel that the Government are very much out of touch with the real world when it comes to Private Landlords.
I appreciate that there are some bad landlords out there however I feel there are more good than bad, they seem to take all the surveys and inputs from the larger cities. The amount of Bad tenants outweighs the good tenants yet the government are giving the tenants all the rights.
Lets face it when do landlords seek possession without valid reason?
The social housing stock in my area is none existent and the local council contact the private landlord to house their tenants. Out of the 200 properties that I manage 160 landlords have stated they will be selling up leaving my area in massive deficit of any houses. I feel this may be normal practice for many should the government keep pushing landlords to the point of NOT levelling up for landlords too.

David Smith

13:15 PM, 27th June 2022, About 2 months ago

Why would it stop Second homeowners renting out their holiday-let’s? It wouldn’t be their Primary Residence so no need for planning permission.

northern landlord View Profile

13:45 PM, 27th June 2022, About 2 months ago

I thought Gove was supposed to be one of the more intelligent ones in the Cabinet? They seem to forget in all this that they are taking away a landlord’s right to do what they want with their own property. Landlords are already getting out of the PRS in the face of proposed and upcoming legislation. Those lucky enough to have rental properties in seaside or other desirable areas see short term holiday lets as an escape from all this. This is seen as a loophole, hence the proposal to get owners to seek planning permission if they convert their BTL to a holiday let.

It really seems that if Landlord’s don’t get out now they are basically going to get trapped owning a very expensive asset they have virtually no control over. They will have eviction proof tenants who can just walk away from a tenancy when they feel like it, while the landlord will have to resort to a lengthy court procedure if they need to remove a tenant, maybe even if they just want to sell up. Can you imagine the barriers that might be put up to prevent a landlord from actually selling their own property? Maybe it will be legislated that you must first try to sell with tenants in place, thus eliminating your property from the open owner occupier market and the best price. Generation Rent are already pushing for landlord’s to have to pay the tenant compensation of around £1700 if tenants are evicted to allow the landlord to sell up and the Government seem to listen to them. Whatever next? Empty homes requisitioned by Councils to house benefit tenants with rent at unrealistic LHA rates as compensation for the owner? Who knows? As a landlord am I over thinking all this and getting paranoid? Maybe, but remember “just because you are paranoid doesn’t mean they are not out to get you! ”.

Sheralyne Stamp

14:07 PM, 27th June 2022, About 2 months ago

Reply to the comment left by northern landlord at 27/06/2022 - 13:45
I am a agent (sole trader) and feel what you have said hits home 100% I work for many landlords and have advised them all to think carefully about the future of renting their homes out.
Yes I could be putting myself out of business however I feel that the word levelling up as they put is is far from levelling up and would not like my clients to fall foul of this new white paper.
They are also hitting agents hard with the CMP , PRS and other financial commitments to stay in business and I am now asking myself if it is all worth the hassle and expense.

Gromit

19:59 PM, 27th June 2022, About 2 months ago

Reply to the comment left by northern landlord at 27/06/2022 - 13:45
Don't confuse intelligence with commonsense.

Peter G View Profile

20:28 PM, 27th June 2022, About 2 months ago

Am I wrong? There re 3 types of renter:
1) People on contracts who need a short term accommodation but cannot afford hotels, AirBnb and B&Bs and want 1 place to stay, not jump about from place to place. Length of stay depends on the length of their contract.
2) people who want a home for the long term because they cannot afford to buy a property.
3) people who want to stay somewhere for a few days/week/2 weeks (on holiday usually) and cannot afford hotels and B&Bs. AirBnB is great for them especially if they need self catering, perhaps for special dietary or medical needs.
Do Gove's new policies allow for ALL these different needs? If not, then he is messing with people, not landlords, by introducing these restrictions. Does it seem to you that Gove thinks only Category 2 renters exist?

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