Short-term Lets: Regulation

Scarborough and Whitby are popular destinations, but short-term holiday lets have forced people out of the towns. There are only seven homes available on Rightmove in the Whitby area while 300 properties are on short-term let platforms.

The issue involves justice, not envy. Properties have moved from council tax to business rates and some are getting small business rate relief while affordable homes for local people do not get investment. In Cornwall alone, £500 million of taxpayers' money has gone into holiday let providers. George emphasized issues of social justice, noting that the current system benefits wealthy property investors while penalizing local residents. He supported a registration scheme and called for changes in tax policies to ensure fairness, highlighting an unfair advantage given to second home owners through business rates relief. The MP noted the contribution of hotels and purpose-built accommodation to local economies, highlighting their disadvantage compared to individual short-term lets that often avoid taxation. I thank the Minister for her response and request that she make strong representations to the Treasury regarding small business rate relief, as it is currently being abused instead of protecting village shops and similar businesses.

In her constituency, many owners of short-term lets are worried that the debate will focus on urban areas rather than rural ones. She highlighted the need to balance regulation with supporting local economies.

The MP highlighted the cross-party commitment to addressing short-term lets regulation. He noted the impact of the covid pandemic on travel accommodation and discussed changes in the buy-to-let market and increased checks for tenants due to market shifts and regulatory requirements. The MP emphasized the importance of ensuring that short-term lets play a positive role in communities while also considering long-term housing demands.

The Renters' Rights Bill is a welcome piece of legislation, but it should also ensure security and high safety standards for tenants in short-term lets.

Asked Lizzi Collinge if they agree that getting the balance right between short-term lets' contribution to tourism economies and providing affordable homes for locals is crucial.

Ms. Kirkham discussed the impact of short-term lets in Cornwall, where there are around 24,300 properties used as short-term lets, up 30% from 2019. She outlined a toolkit of measures including a licensing scheme, closing loopholes for business rates and council tax, doubling or tripling second home taxes, and creating a planning use class for holiday lets. I point out that there are planning restrictions on some properties in Cornwall which allow only holiday lets, and I want the Government to be aware of this when developing new regulations.

Mr. Powell highlighted the significant impact of short-term lets on his constituents, noting that more than 5% of properties in Kensington and Chelsea are listed as short-term lets. He praised local councils for taking steps towards enforcement but stressed the need for a licensing scheme with fees to cover enforcement costs and ensure each property is registered.

Discussed the role short-term holiday lets play in boosting local economies, particularly during events like the funeral of Queen Elizabeth II and the coronation. Highlighted issues such as rising housing costs due to properties becoming short-term lets, leading to homelessness and displacement. Called for more powers and funding for councils to control second homes and short-term lets.

In Morecambe and Lunesdale, short-term lets are important for tourism but cause housing shortages. A licensing system is needed to ensure safety standards and prevent harm to local residents.

Campbell-Savours highlighted the issue of short-term lets in Keswick, noting there are 1,000 holiday lets. He argued that while a toolkit approach is interesting, it may not be sufficient to address the reliance on such accommodation for tourism economies. Campbell-Savours expressed doubt about tax as a solution and suggested caps or licensing schemes rather than planning permissions. Noted that planning authorities struggle with basic tasks, questioning the feasibility of enforcing thousands of holiday lets without additional funding from operators. The MP questioned whether the 'light touch' registration scheme proposed by the previous Government would meet the needs of his constituency, which lacks additional legal powers available in London.

There is a need to establish a level playing field for different kinds of holiday accommodation while supporting local bona fide holiday businesses. The risk is that more institutionalised Airbnbs or second homes may flood the market. Asked if it should be possible to register a change of use for furnished holiday lets subject to planning restrictions given the impending legislative changes.

Ms Paula Sherriff agrees with the need for regulation and highlights the different challenges faced by areas with longer-standing tourist let economies compared to central London.

Ms Billington highlighted the growth of short-term holiday lets in East Thanet, noting a 75% increase since 2019. She expressed concern about property prices rising and local services being strained due to unregulated short-term lets. Residents are facing antisocial behaviour and lack of community interaction as homes become commercial properties.

She congratulated Rachel Blake on her presentation and argued for a licensing scheme for short-term holiday lets, which would include fees, fines, environmental controls, health and safety standards, and restrictions on operation days. She emphasized the negative impact of short-term lets on housing supply and community life. My hon. Friend asks me to look at her Bill, which proposes a licensing scheme for short-term lets, allowing local authorities to control the number of such lets in their area.

He urged for a policy that fits well in rural areas rather than a one-size-fits-all approach. He cited concerns about the impact of new rules on traditional self-catering businesses and highlighted potential losses of £779 million in income from these sectors. I suggest a pause in the change of furnished holiday letting regime scheduled for April 2025, as there has been no assessment by the Office for Budget Responsibility on its potential effects.