Plans to grant councils more control over short-term holiday lets and second homes are gaining momentum as the government considers giving them additional powers to regulate these properties. Housing Minister Matthew Pennycook confirmed that the move is being actively explored, acknowledging the significant impact such properties have on local housing markets and services.
The decision comes as concerns about the effects of excessive numbers of short-term lets and second homes continue to grow. Experts warn that they are exacerbating housing shortages and pushing up prices for permanent residents. Mr Pennycook highlighted the need for a balance between tourist activities and community needs, stating: “We understand that local services, including housing and schools, can be put under pressure by excessive concentrations of short-term lets and second homes.”
Existing measures to address these issues include allowing councils to charge up to 100% extra on the council tax bills of second homeowners. This premium aims to provide additional funding for councils to mitigate the impacts of second homes and support community sustainability. Additionally, from October this year, higher rates of Stamp Duty Land Tax (SDLT) on additional dwellings will increase from three percentage points above standard rates to five percentage points above standard rates, giving first-time buyers an advantage over individuals buying additional properties.
The government has also committed to introducing a national registration scheme for short-term lets. Under this forthcoming scheme, hosts must register their property's address and obtain a unique reference number that will be displayed on all advertising platforms. Furthermore, hosts will need to confirm compliance with essential fire safety, gas, and electrical certifications.
The Labour Party has long advocated for stronger action on short-term lets, with Shadow Secretary of State Angela Rayner criticising the government's current approach as insufficient in addressing the housing crisis effectively. She has called for more comprehensive powers and strategies to ensure homes are available for local people.
This move towards giving councils greater authority is a direct response to calls from Members of Parliament and local communities, particularly in popular tourist destinations, who have been seeking effective tools to manage the proliferation of short-term rentals.