New laws in UK to allow locals more control over short-term rentals in tourist hotspots

Wednesday, April 19, 2023

The UK government plans to introduce new laws to allow communities more control over short-term rentals in tourist hotspots while also improving the tourism sector.

A consultation published by the Department for Levelling Up, Housing, and Communities will propose introducing planning permission for an existing home to begin being used as a short term let, assisting local people in areas where a high number of holiday lets prevent them from finding affordable housing.

It will also explore whether to allow homeowners to rent out their homes for up to a certain number of nights in a calendar year without requiring planning clearance.

Short-term rentals are becoming an important element of the tourism economy in the United Kingdom. They provide visitors and business travellers more options and flexibility, as well as those attending big athletic and cultural events.

The government intends to guarantee that the country reaps the advantages of diversified and sustainable lodging, while simultaneously preserving local communities and maintaining the availability of affordable housing to rent or purchase.

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

“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.”

The new suggestions come as the Department for Culture, Media, and Sport conducts a separate consultation on a new short-term rental registration mechanism.

The initiative attempts to provide a picture of how many short-term rentals exist and where they are located in order to better assess the impact of short-term rentals on communities.

The DCMS consultation comes after a request for evidence earlier this year, the findings of which were released and show widespread support for a registration mechanism throughout the industry.

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 government has heeded cries from locals in tourist destinations who say they are priced out of houses to rent or purchase and need more affordable housing so they can continue to work and live in the area they call home. The suggested design modifications will promote sustainable communities by assisting local residents, companies, and services.

The proposed planning reforms would include the creation of a planned use class for short-term rentals that are not used as a sole or primary residence, as well as new authorised development rights that would eliminate the requirement for planning approval in regions where local governments opt not to utilise these planning restrictions.

Because both of these measures are aimed at short-term rentals, the planning modifications and the registry will have no effect on hotels, hostels, or B&Bs.

The short-term rental registry is being created as part of the Levelling Up and Regeneration Bill, which is now being debated in Parliament.

The planned amendments would be implemented through secondary legislation later this year, depending on the conclusion of the consultation, and would apply exclusively in England.

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