What the new planning permission rules for short-term rentals mean for hosts

In response to growing concerns over the impact of short-term holiday lets on housing availability and community well-being, the UK government has introduced new regulations that could significantly affect hosts. Under the new rules, property owners offering Airbnb-style accommodations will now require planning permission, with some exemptions for those renting their primary residence for under 90 days a year. A mandatory National Register will be established to help local councils monitor and manage short-term rentals. While some welcome the move as a necessary step to protect housing stock, others argue the regulations may not fully address the root causes of the housing crisis.

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By
Freya Gutteridge

Business & Insights

Short-Lets

In response to concerns about the impact of short-term holiday lets on communities and the housing crisis, the UK government has introduced new regulations that could have significant implications for hosts.

The new regulations

Under these plans, AirBnB-style short-term lets will require planning permission, marking a pivotal shift in how such properties are managed and regulated. 

Housing Secretary Michael Gove recently announced laws mandating that property owners renting out their homes as short-term holiday accommodations must seek council permission under a new "use" category.

Exemptions and National Register

There is a crucial exemption: individuals renting out their primary residence for 90 days or less in a year are exempt from these rules. Additionally, to enhance oversight and provide local authorities with vital information, a mandatory National Register of short-term lets will be established. 

This register aims to empower councils to better monitor and manage short-term rental activity within their jurisdictions.

Mixed reactions

The announcement has been met with mixed reactions. Westminster Council, which grapples with approximately 12,000 short-term lets, welcomed the move, citing concerns about the erosion of housing stock and community impacts like noise disturbances and littering. 

However, critics argue that the regulations may not adequately address London's housing crisis, especially considering the city already caps short-term lets at 90 days per year.

Concerns and challenges

One of the primary concerns is the potential impact on long-term rental availability and rising rents. With the growing popularity of short-term lets, particularly through platforms like Airbnb, there's a fear that properties previously available for long-term rentals will be diverted to the short-term market, exacerbating the housing shortage. 

In addition to this, community disturbances, such as noisy parties and increased littering, have been a source of frustration for residents in areas with high concentrations of short-term lets.

Response from Airbnb and critics

Amidst these concerns, Airbnb has welcomed the new regulations, emphasising the benefits for hosts and local authorities. They argue that clear rules and a national register will provide transparency and accountability, benefiting both hosts and the wider community. 

However, not everyone is convinced of the effectiveness of these measures. The Short Term Accommodation Association (STAA) has criticised the regulations as insufficient, urging the government to consider broader factors such as housing supply and employment. 

They warn that without more comprehensive action, the reputation of the short-term letting industry may suffer, perpetuating negative perceptions and hindering its ability to contribute positively to the housing market.

Navigating these changes

The new planning permission rules for short-term rentals represent a significant development in the regulation of the holiday accommodation sector. While they aim to address concerns about community impact and housing availability, their effectiveness remains uncertain. 

Hosts and stakeholders must navigate these changes carefully, mindful of both the opportunities and challenges they present for the future of short-term letting in the UK.

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