New Planning Powers Granted to Councils for Regulating Holiday Let Growth

If you’re the owner of a holiday let property, or you were planning on purchasing a property as a holiday let, you need to be aware of new powers being granted to local authorities that might affect you.

What are the new planning rules?

Set to be introduced this summer, the new controls will require homeowners to seek permission from their local council in order to turn their home into a short-term let.

Announcing the plans in February, the Department for Levelling Up, Housing and Communities said councils could now require planning permission for properties to be converted to holiday lets. Under the new rules, a new ‘use class’ will be created for short-term lets, while councils will be able to refuse homeowners’ requests to use properties as short-term lets, for example if they believe there are already too many in a certain area. A new mandatory national registration scheme will also be introduced.

Note that the new rules will not apply to people who wish to rent out their main home for fewer than 90 nights per year.

What’s the purpose of these changes?

The Government has said these new rules will allow local communities to ‘take back control’ and prevent towns—particularly in coastal resorts and tourist hotspots—from being ‘hollowed out’.

Local residents, for example in Wales and Cornwall where there is a high demand for holidays lets, have complained that they’re being priced out of the housing market, with both house prices and rents pushed out of reach.

The purpose of the new mandatory national registration scheme will be to provide local authorities information about short-term lets in the area, providing a clearer picture about the effect of short-term lets on the community, and ensuring compliance with health and safety regulations.

What if you have an existing holiday let?

The Government has confirmed the new rules will not apply to existing short-term lets, with those properties automatically reclassified without the need for planning permission. Hotels, hostels and B&Bs are also unaffected by these new powers.

Do you need help navigating the complex tax rules and legislation covering short-term lets, or longer term rentals? Here at Warr & Co, we have a specialist team of landlord accountants that offer a comprehensive service to ensure you stay compliant and as tax efficient as possible.

To find out more, get in touch with our experts today. Alternatively, you can book a free, no obligation consultation to help you identify the best options for your situation.