Councils could get more powers over short-term lets and second homes

The government has hinted at giving councils more powers to clamp down on short-term lets and second homes.

In response to a written parliamentary question, Housing Minister Matthew Pennycook confirmed the government was considering “additional powers” for councils to tackle the pressures created by short-term lets and second homes.

The news comes as MPs have called on the government to go further in clamping down on short-term lets by changing data-management rules.

Considering additional powers

Mr Pennycook said: “The government recognise that excessive concentrations of short-term lets and second homes impact on the availability and affordability of homes for local residents to buy and rent, as well as local services.

“Local authorities are now able to apply a premium of up to 100% extra on the council tax bills of second homes. The premium will provide additional funding for councils and help local leaders to address the impacts of second homes and improve the sustainability of communities where they consider it necessary.”

He adds: “From 31 October 2024, the higher rates of Stamp Duty Land Tax (SDLT) on additional dwellings were increased from three percentage points above standard rates to five percentage points above standard rates. This is to ensure that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords, and businesses purchasing residential property.

“We are considering what additional powers we might give local authorities to enable them to respond to the pressures created by short-term lets and second homes.”

Mandatory national registration scheme

As previously reported by Property118, the government has committed to introducing a mandatory national registration scheme for short-term lets.

Under the scheme, hosts will need to register their property’s address and will be issued a unique reference number. This number must be displayed on all platforms where the property is listed.

Hosts will also be required to confirm that they are complying with existing regulations for short-term lets, including fire safety, gas, and electrical certifications.