UK to Toughen Rules on Short-Term Lets to Tackle ‘Hollowing Out’

(Bloomberg) -- Rishi Sunak’s government plans to give local councils in England power to control the number of properties built for short-term lets by making them subject to planning rules, an attempt to tackle the “hollowing out” of tourist areas where housing has become unaffordable for local people.

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Under the proposals announced by Housing Secretary Michael Gove on Monday, people planning to let out their property as a holiday home would need to seek permission from local authorities. A mandatory register will also be introduced to give councils more information about short-term lets in their area.

The new rules, which the government intends to take effect from this summer, would not apply to people renting out their main or only home for less than 90 days a year, the government said. The planning changes and new register will not affect hotels, hostels or Bed & Breakfasts, it said.

Political pressure has been building on the government to take action especially in seaside or other areas with a high number of tourists, such as Cornwall in the southwest, where the number of people owning holiday homes or building second homes for holiday lets have boosted house prices far beyond the salaries of local people.

“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,” Gove said in an emailed statement. “These changes strike a balance between giving local people access to more affordable housing, while ensuring the visitor economy continues to flourish.”

The government said it will set out more details, including the time line for the register and the new “use class” for short-term lets in its response to a consultation, which started last year.

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