Government Proposes New Rules to Control Short-Term Holiday Lets in Tourist Hot Spots

Properties are seen in the popular seaside resort of St. Ives in Cornwall, England, on April 13, 2016. Matt Cardy/Getty Images

New rules that will give communities greater control over short-term lets in tourist hot spots where local families say they have been priced out have been proposed by the government.

A consultation published on Thursday by the Department for Levelling Up, Housing and Communities will propose introducing planning permissions requirements for short-term lets in tourist hot spots.

Families have claimed that an explosion in holiday lets is strangling rural communities.

The government said it has “listened to calls from local people in tourist hotspots that they are priced out of homes to rent or to buy and need housing that is more affordable so they can continue to work and live in the place they call home.”

It added that local authorities could choose not to use the planning controls, and that they would only apply in England.

Michael Gove, secretary of state for levelling up, housing, and communities, leaves BBC Broadcasting House, in London, on March 26, 2023. Hollie Adams/Getty Images

‘Families Desperate to Rent’

Secretary of State for Levelling Up Housing and Communities, Michael Gove said that “tourism brings many benefits to our economy but in too many communities we have seen local people pushed out of cherished towns, cities, and villages by huge numbers of short-term lets.”

“I’m determined that we ensure that more people have access to local homes at affordable prices, and that we prioritise families desperate to rent or buy a home of their own close to where they work,” he added.

“I have listened to representations from MPs in tourist hot spots and am pleased to launch this consultation to introduce a requirement for planning permissions for short-term lets,” he said.

According to the Campaign to Protect Rural England (CPRE), there has been a 1,000 percent increase in the number of homes listed as for short-term lets in the UK between 2015 and 2021.

Hundreds of homes previously available to rent to local people have been switched to short-stay holiday rentals, particularly acute in rural areas, and thousands of families have been added to social housing waiting lists.

In a report, published in January 2022, CPRE said that in Cornwall, which saw short-term listings grow 661 percent in the five years to September 2021, there are roughly 15,000 families on social housing waiting lists and the same number of properties being marketed as holiday lets.

CPRE claims that a surge in the number of homes marketed for Airbnb-style short-term lets is also “crippling” the residential rentals market.

The Airbnb app logo is displayed on an iPhone on Aug. 3, 2016. Carl Court/Getty Images

Paul Miner, CPRE Director of Policy and Planning, told The Epoch Times by email that it “broadly welcomes” the government consultations.

“Local democracy should be at the centre of local planning decisions and rural local authorities need more powers to meet their local housing need,” he said.

However, Miner said, “councils also need further powers to insist that a higher proportion of housing are social homes.”

“Currently, too many new builds are large, expensive, three and four bedroom executive homes. In this regard the government’s proposals don’t go far enough,” he added.

Airbnb

Theo Lomas, head of public policy and government relations for northern Europe at Airbnb, said: “Airbnb has long called for a national register for short-term lets and we welcome the government taking this forward.

“We know that registers are clear and simple for everyday hosts to follow while giving authorities the information they need to regulate effectively.

He said that the “vast majority of UK hosts share one home, and almost four in 10 say the earnings help them afford the rising cost of living.”

“We want to work with the government to ensure that any planning interventions are carefully considered, evidence-based, and strike a balance between protecting housing and supporting everyday families who let their space to help afford their home and keep pace with rising living costs,” said Lomas.

National Registration Scheme

The Department for Culture Media and Sport is also launching a separate consultation on a new registration scheme for short-term lets.

The scheme aims to build a picture of how many short-term lets there are and where they are located, to help understand the impact of short-term lets on communities.

Culture Secretary Lucy Frazer said: “This new world of ultra-flexible short-term lets gives tourists more choice than ever before, but it should not come at the expense of local people being able to own their own home and stay local.

“The government wants to help areas get the balance right, and today we have an incomplete picture of the size and spread of our short-term lets market.

“This consultation on a national registration scheme will give us the data we need to assess the position and enable us to address the concerns communities face.”

The register is being introduced through the Levelling Up and Regeneration Bill currently going through Parliament, while the planning changes, subject to the outcome, could be introduced later in the year.

PA Media contributed to this report.