The government has recently released plans to introduce new laws around short-term lets in the UK.
It comes in the midst of debates surrounding the prevalence of holiday lets in rural and coastal areas. Local residents are increasingly being priced out of the property market by investors and second homeowners.
Another justification has been the increase in noise complaints and anti-social behaviour surrounding Airbnb properties. Holidayers have been criticised for disturbing the peace of local communities.
These plans are set to shake up the holiday let industry, but who’s going to be impacted?
What are the proposed changes?
Michael Gove, the Levelling Up Secretary, has announced plans to introduce planning permission procedures for owners wanting to rent a property on holiday let platforms such as Airbnb for the first time.
The changes are intended to deter investors from buying homes in local holiday hotspots to prioritise short-term let income. Some communities are starting to see locals being pushed out of the places they call home because of the buoyant holiday rental market.
The government may be hoping that competition for investment properties can become less intensive, helping to create more affordable housing for local buyers and renters.
How will this impact investors?
New planning permission laws will add another layer of complexity for investors when it comes to buying properties to offer as holiday lets.
Specific regulations and measures are yet to be released, but local councils may be given the authority to veto property sales or deny planning permission if they are deemed to be detrimental to the local community.
Owners may need to rent properties out for a certain period to residential tenants before they can be considered for short-term lets. This will incur additional costs for investors which may make the opportunity less appealing.
Investors may be tempted to explore other opportunities such as holiday lodges for sale or property abroad to get around new permission laws and complications here in the UK.
Will this impact existing hosts?
The good news for existing Airbnb and holiday rental hosts is that these proposed changes are unlikely to disrupt their existing operations.
Only new property hosts could be required to have planning permissions before offering short-term lets, although the government hasn’t ruled out further measures for the industry as a whole.
Airbnb hosts can do more to ensure guests respect the privacy and tranquillity of local communities. Holiday destinations are that for a reason and guests shouldn’t be detracting from that.