The Government have published a consultation on a registration scheme for short-term lets in England, accompanied by the findings of a call for evidence held in 2022 on the development of a registration scheme.
The short-term let sector has grown significantly over the last 10 to 15 years, with the emergence of the sharing economy and the growth of digital platforms at the heart of this change. Short-term lets are now a significant part of the UK’s visitor economy. They provide increased choice and flexibility for tourists and business travellers, and also those attending major sporting and cultural events.
The Government recognise that this has brought a range of benefits, such as increased choice for consumers, and increased income for individual homeowners and to local economies through increased visitor spend.
The Government want to ensure the country reaps these benefits and supports the visitor economy, while also protecting local communities and ensuring the availability of affordable housing to rent or buy.
The Government have heard the concerns of local people in tourist hotspots that they are priced out of homes to rent or to buy and need housing that is more affordable so they can continue to work and live in the place they call home. The proposed planning changes would support sustainable communities, supporting local people and businesses and local services.
The Department for Culture, Media and Sport (DCMS) committed to consult on a registration scheme for tourist accommodation in “The Tourism Recovery Plan”, published in June 2021. However, given the lack of available data on short-term lets in England, it was decided to first carry out a call for evidence to gather more information on the growth of the market and its impact, in order to inform the development of options for a public consultation.
The call for evidence received almost 4,000 responses. Analysis of these responses showed that there is a need for a more consistent source of data on the number and location of short-term lets in England; and that while short-term lets create many benefits for a range of people and stakeholders, they also pose challenges for communities, particularly those located in tourism hotspots. The findings also indicated that there is broad support from across the sector for a registration scheme of short-term lets in England.
Therefore, in December 2022, the Government committed to introduce a registration scheme in England via an amendment to the Levelling Up and Regeneration Bill which is currently going through Parliament. This included holding a public consultation which would explore the options for how such a scheme would operate, which we have now published. Alongside the registration scheme, the Department for Levelling Up, Housing and Communities has also published a separate consultation on the introduction of a planning use class for short-term lets and potential associated permitted development rights. We are also seeking views on whether it would be helpful to expressly provide a degree of flexibility for dwelling houses to be let out for 30, 60, or 90 nights in a calendar year before planning permission could be required. These changes will give local areas greater control where short-term lets are an issue and support sustainable communities. We have worked across government to ensure that the proposals are complementary and proportionate.