Could thousands of rental homes be lost to holiday style letting?

Proposed government changes announced in the recent budget which targets Airbnb-style rentals may result in the loss of over 10,000 long-term rental properties, particularly impacting families in London. 

While initiatives like scrapping tax breaks and implementing a registration scheme aim to regulate the holiday let market, a loophole allowing landlords to convert rented properties into vacation accommodations without planning permission could exacerbate the housing shortage.

Coupled with increased costly legislation and uncertainty of the private rental section there has been a sharp rise in the number of landlords taking their long term-lets off the market in favour of short stays and holiday lets

Adam Hug, leader of Westminster city council, warns that this loophole could lead to the disappearance of thousands of rentable homes, making it even harder for individuals to secure housing. Although councils can introduce planning controls in areas overwhelmed by holiday lets, the process is lengthy and may not effectively address the immediate issue.

Additionally, proposals to grant retrospective planning permission to properties currently used for holiday rentals could further disadvantage local residents seeking affordable housing. 

Holiday lets, which are more profitable for landlords, often outcompete traditional rental options, exacerbating the housing crisis.

While long-term renters provide landlords with consistent cashflow throughout the year, data suggests the lucrative potential of higher rates on shorter terms is a strategy that more buy-to-let landlords are starting to seriously consider.

While the government aims to provide more control over short-term lets and eliminate tax advantages for holiday properties, the impact on existing regulations in London remains uncertain. 

Despite recognising the importance of short-term lets in the tourism sector, the government acknowledges the challenges faced by local communities in accessing affordable housing.

But as yet the Government have failed to introduce and clear legislation or plan that is devoted to resolving this long term issue, instead focusing its energy on sticking plaster reforms to steam the arterial bleed of the lack of homes that the voting public can afford.