Michael Gove is targeting Airbnb and other property rental websites with laws that could curb the number of short-term holiday lets in England’s tourist hotspots.
This proposal has been on and off the government agenda over the past year.
It will take secondary legislation to enact which may or may not need parliamentary approval. Whether the government has time to fit this in the timetable before the election is a moot point.
So Owl is filing this away as just another interesting Tory “promise”.
Oliver Gill www.thetimes.co.uk
Owners will need to seek planning permission before renting out their properties through the likes of Airbnb, under new legislation to be announced this week.
The housing secretary is acting amid fears that locals in English seaside towns are “being shut out of the housing market”, while traditional B&Bs and hoteliers are being undercut by private rentals.
Going forward, anyone letting out their property for more than 90 days must first apply for planning permission and sign up to a government registration scheme, under changes to short-term letting laws, say industry and Whitehall sources. The new rules would apply to a “main or sole home” and could also apply to second homes.
The default position will be that permission will be granted. But new laws will devolve the decision to councils, empowering local authorities to remove “permitted development rights” in areas where there are large numbers of short-term lets.
Making a change of use planning application costs about £450, experts said. Current laws allow for the setting up of a registration scheme. Changes to planning laws will require secondary legislation.
Gove’s decision to press ahead with the plans is likely to anger some in his own party. When they were first mooted a year ago, Sir Simon Clarke, his predecessor as housing secretary, said they were “anti-business”. Jacob Rees-Mogg, a former business secretary, called the proposals “misplaced”. But sources close to Gove were last night about forging ahead with restricting holiday lets.
A government source said: “Short-term lets play an important role in the UK’s thriving tourism sector, but in some areas, too many local families and young people feel they are being shut out of the housing market and denied the opportunity to rent or buy in their own community.
“So the government is taking action as part of its long-term plan for housing. That means delivering more of the right homes in the right places, but also giving communities the power to decide. This will allow local communities to take back control and strike the right balance between protecting the visitor economy and ensuring local people get the homes they need.”
The housing secretary has previously attacked a proliferation of second homes in English tourist locations as turning seaside towns into “permanent Airbnbs”.
Gove has insisted that he is not against allowing people to let out their holiday homes. But he has expressed concern that second-home owners letting through Airbnb are benefiting from a competitive advantage compared with a local bed and breakfast or small hotel.
Airbnb is understood to be supportive of Gove’s changes to planning laws, which apply only to England. It is thought that this is because the new laws provide clarity and are less stringent than in Scotland and Wales.
Laws in Scotland already require short-term lets to be licensed. From April, local authorities in Scotland will be able to apply to charge double council tax for second homes, including those used as holiday lets. Rules are also more onerous in Wales where council tax of up to 300 per cent can be levied on second homes.
The American technology giant has, however, pushed for the registration scheme to be applied to short-term lets of any period, rather than for anyone renting out their property for more than 90 days a year. This is because it would prevent property owners from sidestepping the rules by moving their listing to another website every 90 days.
Amanda Cupples, Airbnb general manager for northern Europe said: “Many communities have legitimate concerns about housing. Airbnb is not the cause of England’s housing challenges, but we do want to work hand in hand to address the challenges that people face.
“A national registration scheme, alongside planning powers for councils to effectively manage any local impacts where they do arise, will be a positive step forward. New rules will help give authorities reliable data to understand and respond to the activity taking place in their communities.”
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