England to Strengthen Regulations on Short-Term Rentals in 2024: Here’s What You Should Know

This morning (19 February 2024), Housing Secretary Michael Gove unveiled extensive alterations to the planning and regulations governing short-term rentals.

What was announced on 19 Feb 2024?

The government has announced plans to implement new regulations on holiday rentals in England starting in the summer. These measures aim to prevent residents from facing challenges in affording to reside within their communities.

Under the proposed changes, individuals will be required to obtain permission from the local council before converting their property into a short-term let.

Additionally, a mandatory national short-term lets registration scheme will be introduced.

The government is still figuring out the specifics to ensure that the register doesn't impose excessive regulations, especially on individuals who rent out their homes occasionally.

Who will be affected by the new regulations?

The planning permission will only be necessary for newly established short-term rentals.

The registration scheme will cover every short-term let owner.

Who will be excluded from the changes?

The regulations won't impact individuals renting out their primary residence for less than 90 nights annually. Hotels, hostels, and bed and breakfast establishments remain unaffected by these adjustments. Existing short-term rentals will be automatically reclassified.

Why is this change pushed by the government?

The government stated that these modifications aim to simplify the search for affordable housing in areas with a significant number of short-term rentals, preventing the "hollowing out" of communities.

Furthermore, the new national register is intended to provide local councils with comprehensive information about short-term rentals in their respective areas. This data will aid councils in understanding the impact on communities and ensuring adherence to health and safety regulations.

Members of Parliament representing renowned holiday destinations such as Cornwall, the Lake District, and Norfolk have previously advocated for stricter regulation. They argue that the surge in short-term rentals has created difficulties for residents in securing affordable housing.

How has the short-term rental registration scheme in England been received so far?

The registration scheme has generally been well-received and is a great step forward towards the authorities gaining accurate information to inform their planning decisions, ensuring a more informed and effective approach to addressing potential problems. It provides essential data that enables local authorities to identify and address issues with the STR providers who just don’t provide safe and relevant standards of services.

Why could the new planning permission regulation be problematic for Short-Term Rentals owners or operators?

The new regulations being introduced in just mere months (from the summer of 2024) may mean that some of the decisions could potentially be rushed and not fully researched.

Also, there could be confusion in the future about the definitions for hotels, hostels, B&Bs, and Serviced Apartments - and which properties fall into which category.

These regulations will likely have a significant impact on popular holiday areas that are already seeing a considerable shift from residential to short-term rentals. The standard stance will be to grant the planning permission by default. However, new legislation will transfer the decision-making authority to local councils, giving them the power to revoke "permitted development rights" in areas heavily impacted by short-term rentals.

How will the government ensure that the new national short-term lets registration scheme does not overly burden individuals who rent out their homes occasionally, and what specific measures are being considered to strike a balance in regulations?

The government said that it recognised how short-term lets are a significant part of the UK’s visitor economy, and that homeowners will still be able to let out their primary or sole home for up to 90 nights throughout a year without planning permission, as is already the case in London. However, it is still considering how to apply the register so that it does not apply “disproportionate” regulation on people such as property owners who only let out their home on an infrequent basis.

Tourism Minister Julia Lopez said: “Short-term lets provide flexibility for homeowners and give tourists more accommodation options than ever before, but this should not prevent local people from being able to buy or rent homes in their area. The government is committed to getting the balance right to ensure both local people and our visitor economy can thrive.”

What are the criteria that local councils will consider when granting or revoking "permitted development rights" in areas heavily impacted by short-term rentals, and how will these decisions be made to ensure a fair and effective implementation of the regulations?

Further details of the planned measures will be set out in the UK Government’s response to consultations, including the timeline for implementation of the register, the use class and the individual permitted development rights – with the changes being introduced in England from this summer.

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