New planning permission rules for holiday lets in tourist hotspots?

The government is proposing new rules for holiday lets to protect local communities in tourist hotspots.

Under the news rules, which are currently out for consultation, homeowners in England would be required to get planning permission before renting out their property as a short-term let.

The move aims to help prevent local people from being priced out of the property market in areas that are popular holiday destinations.

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 popularity of short-term lets has soared in recent years due to a combination of online platforms, such as Airbnb, and a rise in people opting for staycations following the COVID-19 pandemic.

But while the jump in availability of holiday properties is good for tourists, local people in some tourist hotspots have found themselves priced out of the property market.

There have also been complaints that popular destinations have become ghost towns outside of the holiday season, while they also face labour shortages due to the lack of affordable local accommodation to rent or buy.

The move is potentially good news for people who live in tourist hotspots who are struggling to get on to the property ladder, as it should help to ensure that house price rises are more sustainable.

It is less good for people who had hoped to invest in a holiday let in a popular area, particularly if they are considering this as an alternative to a buy-to-let property, after these have been hit by significant tax rises in recent years.

But the move should not impact homeowners in holiday areas who want to rent out their home on an occasional basis, such as while they go away themselves.

The consultation is looking at whether homeowners should have the flexibility to rent out their home for a set number of nights, such as 30, 60 or 90 nights each year without needing to obtain planning permission.

The changes will only impact short-term lets, and will not affect hotels, hostels or B&Bs.

The proposals come as the Department for Culture, Media and Sport launches a separate consultation on a new registration scheme for short-term lets.

The scheme aims to build a picture of how many short-term lets there are across the country and where they are located, to try to understand what impact short-term lets have on local communities.

Culture Secretary Lucy Frazer explained that while the government understood the benefits for tourists that flexible short-term lets offered, these should not come at the expense of local people who wanted to buy their own home.

It hopes that through gathering data on the situation, it will be able to help get the balance right and address some of the concerns of local communities.