Housing Minister Matthew Pennycook says the government is considering a tighter clampdown on Airbnb-style short lets than that proposed by the last Conservative administration.

The Tories said they would abolish the furnished holiday lets tax regime – which some see as giving a financial advantage to short let landlords – and additionally introduce a registration scheme for short-lets run by local authorities.

Pennycook told a Commons committee that he would support similar schemes under his Labour government, but would not stop there. 

He told MPs: “As I said a number of times in the previous Parliament, we do not think they go far enough and we are considering what additional powers we might give to local authorities to enable them to better respond to the pressures they face as a result of the excessive concentrations of short-term lets and holiday homes. I hope to say more on that in due course.”

Pennycook was responding to a proposal by Liberal Democrat MP Gideon Amos who wanted to see a licensing system for Airbnbs, rather like that which exists in many local authority areas for buy to let rentals. 

Without that, Amos said he feared buy to let landlords deterred by greater regulation such as the new Renters Rights Bill would be “leeching more homes into the Airbnb, short-term let sector.”

Amos also called for a new planning use class for short-term and holiday lets – meaning any owner wishing to turn their property into a short let location would require planning consent. 

Amos continued: “The National Residential Landlords Association and Dexters letting agency have argued that the Bill risks pushing landlords out of the sector and into short-term holiday lets. The NRLA estimates a 1% to 2% drop in rental stock. There is agreement on the topic across the sector, and there is a plausible worry that without any additional controls there will be a leeching of stock into more short-term holiday lets.”

Pennycook rejected the specific proposals put forward by the Lib Dem MP but did comment: ”The government are very alive to the fact that there are many parts of the country – coastal, rural and some urban constituencies – where excessive concentrations of short-term lets and holiday homes are having detrimental impacts, not least on the ability of local people to buy their own homes or, in many cases now, rent their own homes. I have stated this on many occasions in the House since being appointed, but I will say it again.”