New Holiday Let Registration And Planning Scheme

The Government is taking steps to address the impact of short-term holiday lets on the housing market, particularly in the South West and London. The proposed changes include a new registration scheme and potential alterations to planning rules ...

This could require homeowners to seek planning permission for operating a short-term or holiday let. However, the Government proposes a 'light touch' registration scheme, so what are the implications for homeowners and the wider community?

The 'Consultation on a registration scheme for short-term lets in England' outlines the government's plans for a new registration system. This decision follows a call for evidence last year and the analysis of almost 4,000 responses. The scheme will be operated by local authorities or the Tourist Office, depending on which option is chosen.

In 2022, there were roughly 257,000 short-term and holiday letting listings in England, with 62% concentrated in the South West (28%), London (17%), and South East (17%). The call for evidence responses showed that hosts typically listed 1-2 properties, earning £5,000-£6,000 a year, and that the industry functioned within its own ecosystem, including online booking services, management, cleaning, and maintenance.

To address the growing concerns around short-term holiday lets, the government has launched a new planning consultation called 'Introduction of a use class for short-term lets and associated permitted development rights'.

The key areas covered in this consultation include:

- Introduction of a new use class for short-term lets
- Potential introduction of a new permitted development right for the change of use from a dwellinghouse to a short-term let
- Potential introduction of a new permitted development right for the change of use from a short-term let to a dwellinghouse
- Exploring flexibility for homeowners to let out their home for up to 30 nights in a calendar year, either through changes to the dwellinghouse use class or an additional permitted development right
- Introduction of a planning application fee for the development of new build short-term lets

The government's proposed registration scheme and consultation on changes to planning rules mark a significant step towards addressing the impact of short-term holiday lets on the availability and affordability of local rental housing.

Homeowners, particularly in the South West and London, need to stay informed about these changes and understand how they may affect their ability to let their properties on a short-term basis.

While the 'light touch' registration scheme aims to strike a balance between regulation and maintaining the industry's growth, it remains to be seen how effective these measures will be in mitigating the negative impacts on the housing market.


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