By Debbie Franklin, Director of Tax and property tax specialist
In a press release published on 19 February 2024, the Government announced that planning rules will be changed to protect local residents in England from being pushed out of their communities by excessive short-term lets.
The proposed planning changes would see a new planning 'use class' created for short-term lets not used as a sole or main home. Existing dedicated short-term lets will automatically be reclassified into the new use class and will not require a planning application.
In addition, a new mandatory national register will give local authorities the information they need about short-term lets in their area. This will help councils understand the extent of short-term lets in their area, the effects on their communities, and underpin compliance with key health and safety regulations.
Homeowners will still be able to let out their own main or sole home for up to 90 nights throughout a year without planning permission and the Government is considering how to apply the register so it does not apply disproportionate regulation for example on property owners that let out their home infrequently.
Secretary of State for Levelling Up, Housing and Communities, Michael Gove said, “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” and that the measures would “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.”
Further details of these measures will be set out in the government's response to the consultations, including the timeline for implementation of the register, the use class and the individual permitted development rights - with the changes being introduced from this summer.
Measures are focussed on short-term lets, and therefore the planning changes and the register will not affect hotels, hostels or B&Bs.
The consultation can be viewed here.