Gove unveils new rules to curb short-term lets

Gove unveils new rules to curb short-term lets

10:05 AM, 19th February 2024, About 10 months ago 39

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The government has announced new rules to restrict short-term lets and give local communities more control over housing.

The changes, unveiled by Secretary of State for Levelling Up Housing and Communities, Michael Gove, will require planning permission for future short-term lets and create a mandatory national register to provide valuable information and help ensure accommodation is safe.

The reforms aim to protect local residents from being pushed out of their communities by lots of short-term lets, which can prevent them from finding affordable housing to buy or rent.

‘Short-term lets can play an important role ‘

Mr Gove 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.”

Long-term plan to prevent a ‘hollowing out’ of communities

The measures are part of a long-term plan to prevent a ‘hollowing out’ of communities, address anti-social behaviour and ensure local people can continue to live in the place they call home.

Owners will still be able to let out their own main or sole home for up to 90 nights throughout a year without planning permission.

The government is considering how to apply the register, so it does not impose disproportionate regulation on property owners that let out their home infrequently.

‘Short-term lets provide flexibility for homeowners’

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.”

The proposed planning changes will create a new planning ‘use class’ 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 register will only affect short-term lets

The planning changes and the register will only affect short-term lets, and not hotels, hostels or B&Bs.

Airbnb’s general manager for northern Europe, Amanda Cupples, 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.

“We have long led calls for the introduction of a Host register and we look forward to working together to make it a success.”


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GlanACC

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14:44 PM, 19th February 2024, About 10 months ago

Reply to the comment left by Anne Nixon at 19/02/2024 - 13:34
I think by short term he means things like AirBNB or holiday lets not a 'landlord' letting for 6 months or more

Andrew Morris

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16:16 PM, 19th February 2024, About 10 months ago

Reply to the comment left by GlanACC at 19/02/2024 - 14:44
Anne was following up on my comment. Under the renters reform bill, there will be no fixed term if 6 months, a tenant will be able to leave with 2 months notice. Plus the rent will be around 1/3 or an Airbnb. This effectively makes all tenancies short term.

GlanACC

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16:42 PM, 19th February 2024, About 10 months ago

Reply to the comment left by Andrew Morris at 19/02/2024 - 16:16
I understand your reasoning but I don't think he is proposing that as according to that logic every single landlord let would potentially be a short term let.

Andrew Morris

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16:51 PM, 19th February 2024, About 10 months ago

Reply to the comment left by GlanACC at 19/02/2024 - 16:42
I don’t think he’s proposing that, it’s simply what will happen as a result. He may not have even anticipated the result, although it’s obvious to me. (But then Section 24 was also obvious). Normal tenancies will replace short term ones as they will become massively more cost effective to the tenant (but not the landlord). Even a few of these tenancies will harm profits and viability.

GlanACC

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16:53 PM, 19th February 2024, About 10 months ago

Reply to the comment left by Andrew Morris at 19/02/2024 - 16:51
I think it would be easy to distingusih between short tem lets and 'landlord' one - the 'landlord' one would still have some king of AST whereas teh short term let would not

Andrew Morris

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17:04 PM, 19th February 2024, About 10 months ago

Reply to the comment left by GlanACC at 19/02/2024 - 16:53
Under the renters reform bill (as I understand it), the new AST will not be fixed, it will be rolling. The tenant will be able to give 2 months notice. They can move in on day one and give that notice. They will have had 2 months at an average of 1/3 of the price of an Airbnb. If they want to stay in an Airbnb for at least 3-4 weeks, it will be cheaper to sign an AST and take a normal tenancy. It’s only a matter of time before this knowledge becomes widespread.

We get asked to do short lets all the time, usually because people are unsure of circumstances. If they ask for a break clause at 3 months, we charge a much higher rent with an exit fee. Even so, it’s much cheaper than an Airbnb or a hotel. Tenants will not have this option with no extra cost. It’s inevitable it gets abused.

Freda Blogs

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18:11 PM, 19th February 2024, About 10 months ago

The ability to shift from ASTs to short term lets saved many LLs' businesses and enabled them to keep their properties.

If Gove thinks that tightening up the short let sector will return properties to long term lets, I think he is mistaken. Instead, more properties will be sold and the current rate of LLs selling up and exiting the sector will accelerate.

Judith Wordsworth

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18:31 PM, 19th February 2024, About 10 months ago

This will negatively impact on the entertainment industry be it theatre or films.

Many touring actors need reasonably priced accommodation from Monday night to Saturday morning only. The Film industry needs short term accommodation for crew and actors, actor being Supporting Artists who might only need 1 or 2 nights.

The man is actually quite mad to think that this measure will benefit anyone.

Cider Drinker

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19:30 PM, 19th February 2024, About 10 months ago

Reply to the comment left by Freda Blogs at 19/02/2024 - 18:11
Short term lets ADD to the housing crisis. Every holiday let is potentially one less property for someone to call home.

If would-be holiday let owners sell up then their property will become available to another tenant or an owner-occupier.

Andrew Morris

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19:46 PM, 19th February 2024, About 10 months ago

Reply to the comment left by Cider Drinker at 19/02/2024 - 19:30
I think there’s room for everyone in the market, we all play our part. Creating bogeymen is what the government are good at. It diverts attention from the housing shortage, which is the government’s responsibility. Many LL have had to shift to short term just to stay in business.

As I said above, with the renters reform bill, in effect, all tenancies will become short term. I’m not against short term, but I am against the significant potential loss in doing it this way, which no one seems to have noticed.

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