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OTHER GUIDES & TIPS

Compulsory Landlord Register? Clamp-down likely on holiday lets

The government looks set to clamp down on holiday rentals and will this year formally consult on the concept of a mandatory register for England.

The consultation process will also look at the impact on communities of proliferating numbers of Airbnb and other short let homes.

The news of the consultation has emerged in a debate in the House of Commons triggered by former Liberal Democrat leader Tim Farron, who told fellow MPs that holiday lets of the kind in his Lake District constituency should require separate planning permission and should involve owners paying multiples of the council tax paid by owner occupiers and traditional long-term renters.

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He claimed that many local people could no longer afford to live in the area, creating labour shortages and damaging services such as schools and shops.

Farron went on to claim that the desire to buy second homes during the pandemic and the ease with which they can be let via Airbnb and other platforms had pushed up prices and left many villages and towns largely empty for much of the year.

"A bad situation has become entirely disastrous" he told members, claiming that the cost of a typical home in his constituency was now around 11 times the average wage.

MPs from other parties backed Farron.

Conservative Bob Seely, who represents the Isle of Wight, told the debate that 82 per cent of residential properties in the village of Seaview were now second homes.

Rachael Maskell, Labour MP for York, said the typical property price in the city was 8.3 times the average wage and Tory Selaine Saxby - MP for North Devon - said that in Barnstaple only two properties were currently listed for long-term rentals, while 123 were available on Airbnb.

Housing minister Chris Pincher, responding for the government, pledged that consultation on a Tourist Accommodation Registration Scheme would begin this year.

Pincher said: ”We recognise a large number of second homes and holiday lets can have adverse effects.” 

But he added that tourism was a significant part of local economies in much of England and home owners had to be free to use their properties as they wished.

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  • icon

    LLs are able to take advantage of business opportunities and when Covid struck the combined effect of the eviction ban & the popularity of staycations made the transition from long term let to holiday let a good solution for those with properties in the right places. The Govt should not be surprised.

    Time and time again, the Govt fails to see the unintended consequences of its policies and is surprised when the obvious happens.

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    Indeed. This news also coincides with the first full year of (100%) withdrawal of tax relief, to be replaced by a fixed 20% credit against mortgage interest payments - aka Section 24. Many landlords will have been tracking the impact of S24 over the last 3 or 4 years, and for those with properties in areas that lend themselves to short term lets, it's a no-brainer. As you say Tricia, unintended consequences.

     
  • Theodor Cable

    In that case then, all that you should do is to hike up your rents and fees.

    And sooner rather than later.

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    Bad policy is always followed by more bad policy to try and correct the consequences. We pray that one day the penny will drop that if Government engage with us we can be part of the solution not just scapegoats… but we aren’t holding our breath. No most of us who have been in the game long enough are already thinking about our next move!

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    100% Correct Dominic. I have 12 properties. I have sold one, I'm selling another once the tenants notice is up in March and the rest will follow year by year. I converted 2 of them into holiday lets but it seems that landlords are kicked where it hurts no matter which way they turn. We're not treated as legitimate businesses, taxed unfairly and it seems we have very few rights when attempting to gain possession of our properties and try to protect our investments when tenants don't pay their rents etc, quite the opposite; we are treated like scum. Why would I want to continue in such a one sided business? I'm pulling out and it feels good just knowing that. Enough is enough. Time to find somewhere else to invest my hard earned cash.

     
  • George Dawes

    More red tape , great idea in such a fragile economy

    It’s almost like they want rid of the prs ….

     G romit

    Getting rid of the PRS has been the Government plan for the last 5-6 years now, in favour of the BTR companies. Unfortunately, the BTR companies aren't syepping up to the plate, and when they do they only want the lucrative young professional market.
    Nobody wants the social housing sector (not even the Housing Associations) with everything tipped against the Landlord.

     
  • icon

    Mr Romit, I quite agree with you, it is a shakedown of the PRS, however I think that Housing Associations are getting extra money for housing people such as refugees, asylum seekers, illegal immigrants etcc.

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