Housing Secretary Michael Gove’s proposals to restrict Airbnb-style short lets do not go far enough, a group of activists has said.
Yesterday Gove announced that councils will be given greater power to control short-term lets by making them subject to the planning process.
Meanwhile, a new mandatory national register will give local authorities the information they need about short-term lets in their area, and the government suggests 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.”
Existing homeowners will still be able to let out their own main or sole home without planning consent but only for up to 90 nights throughout a year.
Generation Rent, led by chief executive Ben Twomey, says all this doesn’t go far enough.
He claims over 35,000 homes have become holiday homes or short term lets since 2019 and Twomey is complaining that these will be allowed to continue - and he claims they have been driving up rents and “forcing people out of their communities.”
In a lengthy statement Twomey says: "Families are being driven out of their communities by the disastrous loss of homes into holiday lets, with over 35,000 privately rented homes lost to Airbnb-style short term lets since 2019.
“Generation Rent has been calling for government action on this issue to keep renters in our communities and we are pleased that a registration scheme will finally be introduced to monitor the use of these properties.
"However, there is significant doubt as to whether changes to the planning system would be enforceable and not enough is being done to reverse recent trends.
“Proposals to allow existing short term lets to automatically gain permission to continue risks shutting the stable door once the horse has bolted.
“Meanwhile, if the planning system is the only way to reverse recent conversions, then it could be uneconomic to bring homes back into long-term tenancies or even trigger a rush of further holiday let registrations before government changes come into effect.
"The government must go further and introduce local holiday let licensing schemes, which could give councils proper oversight of how many homes in their area can be let out as short term lets based on local need. This should include local caps on the number of holiday lets that can operate, along with tax changes that take mortgage interest relief away from holiday lets.
“If the government doesn’t give local councils the powers they need to protect the supply of rented homes, then people will continue to be denied somewhere they can afford in the place they call home."
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Delete Activists, insert MOANERS. 😀 There, fixed it for you. 😂
If they just got proper jobs, who knows, they could perhaps BUY instead of renting, then all their problems would be over, wouldn’t they? 😀
If they actually looked at why there has been rocketing 🚀 explosion of short term lets then he should go back over his previous rants.
High taxation, red tape, more taxation, negative press and removal of S21.
Easier for landlords to go short term lets and not have all this aggro.
Peter, the problem with Twomey is that he's just a kid and wasn't part of GR during the years they were demanding landlords are forced out of the sector. Indeed they were overflowing with glee with all the rules and regulations thrown at the sector knowing that it would reduce the number of landlords and properties. Now it's happened and their eyes are opened to the effects they're demanding that landlords are made to stay. You couldn't make it up!
That’s exactly it. I’ve got quite a few short let’s but had never considered it before section 24. Mine do ok but they are a lot more work. Putting section 24 on the holiday let’s won’t make me go back to BTL because I can’t make any money, but remove it from BTL and I’ll go back in a heartbeat! Simples.
These activists are like “ wolverines” 🐺, snappy and angry. Howling at the moon 🌚 and causing tenants a nightmare 🫣👹
Is this how capitalism dies? You buy something it’s yours . Well it used to be. Now if you buy something there’s all these voices in the background demanding and commanding what you do with it. Sounds like communism is winning to me.
What we need is for Mr Angry to book a holiday in an air bnb (because he certainly wouldn't fly off on holiday, too green and angry)! Once on holiday, a few photos of him published in the sun newspaper should be enough.
In the 1960s they would sit around dingy coffee bars listening to jazz, wearing aran pullovers, long hair and worn out Levi jeans, with a dog eared paperback titled the “ Life of Karl Marx”, in the back pocket, smoking roll up cigarette's and sprouting tatty goaty beards, whilst the putting the World to rights.
Today they wear ties, earn good salaries, and work in offices, but the result is the same. Low achievers, who will always seek out a cause to champion, whilst not having enough guts to take a gamble, risk their own money and be an entrepreneur themselves.
To sum up, “they haven’t got a clue”.
Isn't it the case that the people who register with the council as providing short lets through an AirBnB platform etc will have to pay double council tax, assuming that they aren't paying business rates?
Yes the big question is who is going to police this? Council's already are not able to fully police LTR properties in relation to the many regulations. Add in holiday let's and they will be completely snowed under.
Perhaps the landlords already pay the council because it would not be possible to register holiday makers etc for council tax because of the length of the stay?
Ellie
For many years I operated a hybrid system with one property let normally for 6 to 8 months on a standard AST tenancy agreement and let as a short term holiday rental for around 4 months. During the latter period I paid the standard Council Tax, energy bills etc.
This worked well until the SNP banned mutually acceptable fixed term tenancies in December 2017 and it's now a full time short term rental property. Because of this it's no longer liable to standard Council Tax and is exempt from Business Rates because it counts as a small business.
I also remortgaged it, paying off equivalent btl mortgages on two lower value properties and next year will enjoy 48% tax relief on this mortgage due to the SNP war on property owning Scots who will never vote for them but are outvoted by benefit claiming renters.
On a brighter note I now also get a higher weekly rental over about 15 peak weeks than I used to get every month as well many off peak short breaks.
Does Comrade Twomay really want to ban holidays for those who can afford a self catering staycation but can't afford UK or foreign hotel holidays?
Incidentally many Edinburgh and St Andrews landlords used to operate this same hybrid system but couldn't rely on students getting their act together to give early enough notice to get the tourist season bookings. Many of these properties are now no longer available for students who now compete with families for the dwindling amount of rental properties.
The market worked well without interference from leftie zealots who are now reaping what they have sown!
That worked out well for you Robert.
Did you have to apply for planning permission for it to become a full time short rental property?
When I did it in 2018 planning or licensing wasn't required.
I now need a licence which is another SNP hit on property owners and holiday makers.
Incidentally my Council Tax saving will double on 1 April when the SNP start to fine second home owners an extra 100% of Council Tax, which small businesses like furnished holiday lettings don't have to pay.
You are fortunate Robert. I think they are going to control what people do with their houses in England through council tax (doubling it), planning permission requirements (which will be refused) etc.
I think we are going to be left with very few, or no, viable options to continue letting.
The harder I work and the more I plan ahead, the more fortunate I have become!
Generation Rant etc should try this sometime!
I have a foot in both camps LTR and short let but my short let's are holiday accommodation only (purpose built).
Natural selection will mean a lot of formerly residential homes switching back to LTR due to owners realising holiday let's are a lot more work, unreliable income and a massive over supply caused by the boom immediately after covid. That has well gone now and holiday letting is not so lucrative. Things may be different in cities where there are workers and year round tourists but in seaside places I am convinced it will level out given a couple of years.
I think some will quit, too - and simply sell.
Absolutely crying with laughter here! So, to recap: GR ‘activists’ campaigned vigorously to get rid of private landlords by loudly telling them they should pay extra tax and ideally go altogether. 35,000 landlords heeded their advice and started holiday lets, only for GR to bitterly complain that renters were ‘being forced out of their communities’?!
I’ve definitely understood this correctly, haven’t I?
Yes indeed you could not make it up. Same applies to rent controls - be careful what you wish for.
more rules and legislation is the last thing the rental sector needs at the moment.
The fix is really simple, reverse all the overly complex regulation, legislation, tax burden, etc that has forced landlords move to short term AirB&B type rental. Put in place legislation and tax system that reward landlords for investing long term.
The market needs rental properties, just take a look at Europe, in some European markets rental property represents well over 50% of the market and it works well, but the rules, regulations and taxes are consistent and not changed at political whim.
If Generation Rent & Shelter weren’t just moaning, pointless, politically motivated pressure groups they would realise that the only reason short term Lets are thriving is because they are massively in demand & if they really want to help the homeless problem they would start directing their misguided energies into lobbying the government for a massive increase in the construction of Social Housing .
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