Department For Culture Media Sport
The short-term let sector has grown significantly over the last 10 to 15 years, with the emergence of the sharing economy and the growth of digital platforms at the heart of this change. Short-term lets are now a significant part of the UKs visitor economy, supporting not only our leisure visitors but also those attending major sporting and cultural events or working away from home.
The government recognises that this has brought a range of benefits, such as increased choice for consumers, and increased income for individual homeowners and to local economies through increased visitor spend. At the same time, concerns have been raised in areas with a high concentration of short-term lets about the availability and affordability of homes to buy or to rent for residential use. There are also concerns about inconsistencies within the regulatory framework for the guest accommodation sector.
The government wants to ensure that we reap the benefits of a diverse and sustainable visitor accommodation offer and support the visitor economy whilst also protecting local communities. This includes supporting the provision of a sustainable housing stock for those who live and work in our most popular tourist areas, and ensuring that England continues to provide a safe and competitive guest accommodation offer. The government is therefore taking further action on the issue.
The government committed in the Levelling Up and Regeneration Bill to deliver a registration scheme for short-term let properties in England, to include a public consultation on how such a scheme would work. We are also looking to make planning changes to give local areas greater control where existing homes seek to be used instead as a short-term let.
Registration scheme for short-term lets in England
This consultation sets out three high level possible approaches to a registration scheme and a range of more detailed questions on scheme design. The responses to these questions will inform decisions on final scheme design.
Introduction of a use class for short-term lets and associated permitted development rights in England
This consultation seeks views on the introduction of a short-term let use class. In addition, it seeks views on the introduction of new permitted development rights to provide flexibility where short-term lets are not a local issue, and which allows for this flexibility to be removed where there is local concern. Local communities will have greater ability to control any future increase in the number of short-term lets in their area and support the retention of existing properties to buy or to rent. Some homeowners benefit from letting out their sole or main home for short periods. We are additionally seeking views on how homeowners might be provided with flexibility to let out how their sole or main home for a specific number of nights in a calendar year without there being a material change of use.