Government launches consultation on proposed changes to holiday let regulations

The Government wants to introduce rules that would see planning permission required for homes to be used as short-term lets.

The Department for Levelling Up, Housing and Communities published a consultation that proposes requiring planning permission for existing homes to be used as short-term lets, which will support locals in areas where the high number of holiday rentals hampers their ability to find affordable housing.

Additionally, the consultation will consider whether to allow homeowners to let out their property for a specific number of nights per year without requiring planning permission.

Short-term lets have become an essential part of the UK’s visitor economy, offering more choices and flexibility for tourists, business travellers, and those attending significant sporting and cultural events.

Michael Gove, Secretary of State for Levelling Up Housing and Communities, said, “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.”

The proposed planning changes would support sustainable communities, local people and businesses, and local services. In tandem with these proposals, the Department for Culture, Media and Sport has launched a separate consultation on a new registration scheme for short-term lets. This scheme aims to collect data on the number and location of short-term rentals to help understand their impact on communities.

Culture Secretary Lucy Frazer added: “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 proposed planning changes include creating a planning use class for short-term lets not used as a primary residence, along with new permitted development rights, allowing local authorities to decide whether to implement planning controls in their areas.

The register of short-term lets is being introduced through the Levelling Up and Regeneration Bill, which is currently in Parliament. Subject to the consultation’s outcome, the planning changes would be introduced through secondary legislation later this year and would apply in England only.

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