New AirBnB-style short-term lets will require planning permission under plans designed to prevent the “hollowing out” of communities and ease the housing crisis.
Housing Secretary Michael Gove on Monday announced laws that would require people letting out their property as a short-term holiday home to seek permission from the local council under a new “use” category.
The crackdown would not apply to people renting out their main home for 90 days or less in a year.
A mandatory national register would be set up providing local authorities with information on short-term lets in their area, the Government said on Monday.
It comes after campaigns from councils, particularly those in London, that have a high number of short term lets and a shortage of housing.
Adam Hug, leader of Westminster council, said: “Today’s announcement on a compulsory registration scheme at last acknowledges something this council has long campaigned [and] puts us on the same footing as other major cities around the world.
“We have around 12,000 short term lets in Westminster – more than any other area in the country – and the reality is whole residential blocks have been hollowed out to become the equivalent of short term lets.
“While we appreciate short-term lets are a cost-effective way to see a City, residents often face the impact of noisy parties and dumped rubbish.
“The other issue is that the relentless growth of short term lets has eroded our limited housing stock. If we could take back all the short term lets in Westminster and offer them as private rented properties to local people, it would be the equivalent of seven years’ worth of house building.
“I look forward to seeing more detail on today’s announcement and working with the Government to ensure this is a scheme with teeth.”
Mr Gove, Secretary of State for Levelling Up, Housing and Communities, said the changes would mean people have “more control over housing in their cherished communities”.
He added: “We know short-term lets can be helpful for the tourist economy, but we are now giving councils the tools to bring them under control so that local people can rent those homes as well.
“These changes strike a balance between giving local people access to more affordable housing, while ensuring the visitor economy continues to flourish.”
Amanda Cupples, Airbnb general manager for northern Europe, said the changes would have little impact on the company because 80 per cent of is top 200 revenue markets worldwide are already regulated in some form.
“The introduction of a short-term lets register is good news for everyone,” she said.
“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.”
Linda Taylor, leader of Cornwall Council, welcomed the proposals to tackle the “escalating” number of holiday lets in the county.
She said: “Alongside the introduction of the 100 per cent premium on second homes from April 2025, I’m pleased the Government is providing the fiscal, planning and regulatory powers to help rebalance Cornwall’s housing market and allow us to provide even more decent and secure homes for local people and help all our communities to thrive.”
A Department for Levelling Up, Housing and Communities spokesman said: “The Government also intends to introduce associated permitted development rights – one allowing for a property to be changed from a short-term let to a standard residential dwelling, and a second that would allow a property to be changed to a short-term let.
“Local authorities would be able to remove these permissions and require full planning permission if they deem it necessary.
“Both of these measures are focused on short-term lets, and therefore the planning changes and the register will not affect hotels, hostels or B&Bs.
“Further details of these measures will be set out in the Government’s response to the consultations, including the timeline for implementation of the register, the use class and the individual permitted development rights – with the changes being introduced from this summer.”
