Holiday lets are booming. The number of holiday lets in England alone rose by 40% between 2018 and 2021. So, if you own a holiday home that you let to visitors or longer-term tenants, it’s clearly important to be up to date with the various regulations and legislation that govern this type of enterprise.
It’s an issue attracting a great deal of attention and discussion about some of the ways of tackling the problems that have arisen with holiday let properties in England. So, let’s take a closer look at some proposed legislative changes …
Balance
Alarming headlines might have given the impression that holiday lets anywhere in the country automatically spell disaster.
That is simply not the case. In some previously down-at-heel seaside resorts, for instance, the increased economic activity helped by a growth in the number of holiday lets has been a positive boon. A story published in Landlord Today on the 8th of July singled out the regeneration that has been seen in Blackpool as a particular case in point.
While there are other parts of the country – both seaside towns and country villages – where a saturation by holiday homes has made it difficult for locals to afford homes in the area, the problem is by no means one-sided or all down to holiday lets alone. A more balanced approach needs to be taken.
The introduction of a new C5 use class
In search of that kind of balance, last year the government launched a consultation exercise designed to weigh up the relative advantages and disadvantages brought to any area by a greater concentration of holiday lets.
From that exercise, consideration is now being given to a change in planning legislation to create a new C5 use class specifically for the conversion of dwelling houses into premises principally occupied as holiday lets.
Even if a new C5 use class is widely implemented, it is suggested that planning legislation retains the existing C3 use class for residential dwellings that are used as holiday lets for between 30 and 90 days (the exact interval is still to be determined).
Registration
In addition to changes to planning regulations, consideration is also being given to setting up a registration system for holiday lets.
By requiring owners of short-term holiday lets to register their property, local authorities would then have a better picture of the overall state of affairs, the number of properties involved, and the potential impact on the housing stock available for local residents.
Local authorities would have a clearer picture of the affordability of accommodation for local people and the extent to which the prevailing housing situation might be affecting levels of anti-social behaviour.
By extending registration to local holiday lets, landlords would be encouraged to improve the overall standard of short-term accommodation in the area and play their part in ensuring that all tenants have access to safe and high-quality living spaces.
At least three different options are under consideration for any registration scheme:
- compulsory national scheme – possibly administered by the English Tourist Board, local authorities, or some other agency;
- initial opt-in scheme pending a decision on compulsory registration – this would allow local authorities the opportunity of opting into a discretionary scheme in their area pending an evaluation of the benefits of making the scheme mandatory; or
- a scheme that remains entirely voluntary and into which local authorities exercise the ability whether or not to opt into a registration scheme.
Striking the appropriate balance
Although there are certainly areas of the country where the current number of holiday lets has caused grave concern for local authorities – the BBC has previously identified Salcombe in South Devon as a particular hotspot – most of the discussion strives to strike an appropriate balance in the regulation of holiday lets.
Whether controls are extended through changes to planning permissions or to the registration of holiday lets is yet to be decided.
