Generation Rent calls for stronger council powers as holiday lets surge

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Generation Rent calls for stronger council powers as holiday lets surge

A dramatic rise in second homes and Airbnb-style holiday lets has driven families out of their communities as landlords prioritise profitability, according to a new report.

Research by Generation Rent found that by 2022, there were more than 330,000 holiday homes in England, accounting for around 7% of the private rented sector.

The tenant group is now calling on the government to give local councils the power to license holiday lets and restrict their numbers.

Number of holiday lets has reduced due to tax changes

According to the report, many second homes are let out as holiday lets, with 130,000 taxpayers declaring holiday let income in their tax returns.

Generation Rent claim in their report: “Expansion in the holiday home sector has been accelerated by a lack of effective regulation of short-term commercial holiday lets, alongside tax advantages that make holiday lets more profitable for landlords than residential tenancies.”

However, the number of holiday lets has reduced in recent years due to tax changes. In 2025, there were 268,152 second homes and 67,858 holiday lets, a total of 336,011. This is up from 2022 but down on 2024’s peak of 346,956.

The Conservatives ended the Furnished Holiday Letting (FHL) tax benefits. The scheme allowed holiday let landlords to claim tax relief on their properties if they let them out to holidaymakers for at least 105 days a year.

Other measures gave local authorities discretionary powers to charge up to 200% of the standard council tax rate on second homes. More than 70% of local authorities in England have chosen to exercise this new power.

Drop in holiday lets due to council enforcement

Generation Rent’s findings also reveal that the Isles of Scilly comes out on top of the top 10 local authority holiday home hotspots, based on holiday homes as a proportion of total housing stock at 31%.

Westminster (5%), Wandsworth (1%), and Oxford (1%) have seen holiday homes increase as a share of the local housing stock.

However, the report also finds a drop in holiday lets due to council enforcement, particularly in Camden, which saw the largest decrease in the proportion of holiday homes between 2021 and 2025, falling by three percentage points.

Over the same period, the council recorded a 61% rise in Empty Homes Premium charges, which are applied to properties left empty for at least a year to encourage owners to bring them back into use.

Generation Rent data shows holiday homes in Manchester have fluctuated over the past 18 months.

The tenant group reports many flats start as ‘second homes’ because they are furnished with unknown occupancies, while empty homes are usually unfurnished. Over time, they may be reclassified as student or occupied dwellings. Generation Rent found that 73% of second homes in Manchester still aren’t paying the relevant premium, likely due to this delay.

Give councils more powers to crack down on holiday lets

The tenant group is calling on the government to crack down on holiday lets and give councils stronger enforcement powers.

Generation Rent posted on X, formerly Twitter: “Holiday lets are pricing locals out of their own communities.

“The government must give councils the powers they need to license and limit them, now. Without action, tourism will keep taking homes.”

The news comes as the government announced last year a consultation on new powers for regional Mayors to impose an overnight levy on holiday lets.

The Ministry of Housing, Communities and Local Government have confirmed any new levy would apply to visitors at accommodation providers, including hotels, holiday lets, bed and breakfasts, and guesthouses.

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Deed of surrender or email advising leaving date?

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Deed of surrender or email advising leaving date?

Hi, we are in the process of buying a flat with tenants in situ. Their lease expires at the beginning of August. We have met them, and they said they plan to leave on that date.

Before we complete the purchase, we plan to meet the tenants again and are considering whether it is better for them to sign a deed of surrender for 1 August (even though we are not yet their landlords) or ask them to email us when we are there, confirming that they wish to leave on 1 August.

We are conscious of the Renters’ Rights Act from 1 May and want to make sure the tenants will vacate on 1 August, either by deed of surrender, email confirmation or any other way that Property118 readers recommend.

The reason we are happy to buy around April and keep the tenants until August is that they are currently students and are completing a course.

Also, we would have the flat available for September, which is a time of high demand for rentals.

Is this feasible?

Thanks,

Marie

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Housing disrepair claims fail tenants and landlords – legal expert

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Housing disrepair claims fail tenants and landlords – legal expert

Housing disrepair claims now risk doing more harm than good for tenants, a legal expert has warned.

Des Taylor, a legal expert at Landlord Licensing & Defence, says the current system has become driven by financial incentives for solicitors, often rewarding legal process over practical outcomes.

Mr Taylor is calling on the government to fix the system and move housing disrepair claims from the County court to the First-tier Tribunal.

Economics of legal costs matter more than wellbeing of the tenant

Housing disrepair claims are legal action taken by tenants against landlords who fail to fix property defects, providing tenants with a clear route to have genuine disrepair addressed and to receive compensation when landlords fail to meet their obligations.

However, Mr Taylor says the balance has now been lost, with financial incentives becoming more important than tenants’ wellbeing.

He said: “This was supposed to be about fixing homes and putting things right.

“Instead, it has become a system where the economics of legal costs frequently matter more than the condition of the property or the wellbeing of the tenant.”

The legal expert says tenants often gain little from this escalation and urgent repairs are frequently deliberately delayed.

Mr Taylor warns tenants are advised by their solicitors not to allow works to take place, on the basis that it could weaken the claim.

He explains: “In some cases tenants are told to report every minor issue back to the solicitor instead of the managing agent. Each email then becomes another line on a costs schedule. Meanwhile, the tenant has to continue living with the problem, which could be something as hazardous as damp and mould. Not because of the landlord, because of the solicitor.”

Dynamic shifts away from solving the problem

Mr Taylor explains under the current framework, claimant solicitors are financially encouraged to issue proceedings quickly because their ability to recover significant legal fees only crystallises once a disrepair claim reaches court.

There is a ‘pre-action protocol’ which is meant to promote early dialogue and repairs. However, in reality, proceedings are often launched at the slightest suggestion that a procedural step has not been followed precisely.

Mr Taylor says: “The moment a claim is issued, cooperation stops being rewarded. Everything becomes about generating documents, reports and procedural steps, all of which increase billable fees for the solicitor. That is when the whole dynamic shifts away from solving the problem.”

He warns warns that for claims falling between the small claims track and the fast track, the compensation received by tenants can vary considerably, while claimant solicitors may recover substantial legal fees even when the damages awarded are relatively modest.

Mr Taylor said: “That is how you end up with cases where a tenant receives a few thousand pounds while the legal bill runs into tens of thousands.

“We are seeing examples where a tenant is paid £4,000, a quarter of that is deducted plus VAT, and then a costs claim of more than £22,000 lands on the landlord’s desk. So, the tenant ended up with just £2,800 while the solicitor received £23,000. Such figures are no longer unusual.”

Move housing disrepair claims to First-tier Tribunal

However, Landlord Licensing & Defence says some courts have begun to push back, with instances of judicial criticism where solicitors were found to have inflated costs without advancing repairs.

There have also been cases where wasted costs orders were issued after conduct fell below expected professional standards.

Mr Taylor warns that tenant disrepair claims move slowly through an already strained court system, leaving straightforward cases waiting months for hearings, while landlords who wish to act cannot gain access and tenants remain in poor conditions.

He says more fundamental reform is needed, including moving housing disrepair claims into the First-tier Tribunal.

“The county court is a blunt and inefficient tool for this kind of dispute. It is formal, procedural, and adversarial. The only parties who reliably benefit from delay are those recovering fees,” he says.

“The tribunal looks at reality. It considers the condition of the property, the behaviour of both sides, and what needs to happen next. Costs are contained, and the emphasis is on getting repairs done.”

Landlords deserve a process that does not punish engagement

The government has launched an open call for evidence on housing disrepair claims, examining whether fee structures unfairly prioritise legal costs over tenant compensation.

Mr Taylor says the government must take action to fix the system.

He said: “There is a real concern that tenants are being funnelled into firms based on referral fees rather than quality of advice. That encourages volume and cost maximisation, not good housing outcomes.

“Tenants deserve safe homes and fast remedies. Landlords deserve a process that does not punish engagement or expose them to unpredictable costs.

“Until incentives are realigned, conflict, delay and spiralling fees will remain the norm.”

Landlords and developers can book a no-charge, 10-minute diagnostic call with an expert on housing disrepair, improvement notices, HMO and selective licencing, planning enforcement, Rent Repayment Orders or other compliance matters by clicking here or by calling 0208 088 8393.

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Shelter CEO wants to work with private landlords

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Shelter CEO wants to work with private landlords

Shelter’s new chief executive hints she is willing to work with private landlords to tackle the housing crisis.

In an interview with Inside Housing, Sarah Elliott says she has had a constructive meeting with the chief executive of a landlord association.

Ms Elliott became the head of Shelter in September last year, after Polly Neate stood down following seven years in the role.

Going to have to work as a collective to end homelessness

Ms Elliott told Inside Housing that under her leadership, the housing charity wants to take a “convening role to get everyone around the table.”

She said she has already met with a private landlord association to discuss the impact of the Section 21 abolition under the Renters’ Rights Act. She did not name the association but hinted at a shift in the way Shelter engages with the private rented sector.

She told Inside Housing: “I think we’re very pragmatic, and I think our role will need to evolve. Where there are rogue landlords who are not doing the right thing, we clearly will not be on their side.

“But I do think we’re going to have to work as a collective if we’re going to improve the system and end homelessness.”

Ms Elliott added the housing charity wants to work with councils and housing developers to build more social housing.

Ms Neate criticised private landlords

This marks a shift from her predecessor, Polly Neate, who had criticised private landlords and accused the Conservative government of “bowing down to vested interests while renters are marched out of their homes in their thousands” over delays to the Renters’ (Reform) Bill.

Ms Neate also claimed that Section 21 evictions were a driving force behind homelessness, despite government evidence suggesting otherwise.

Last year, Ms Neate was nominated as a crossbench Peer in the House of Lords, with the Independent House of Lords Appointments Commission describing her as “an expert in social policy, specialising in housing, homelessness and violence against women and girls.”

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Welsh politicians clash over housing crisis as landlords exit

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Welsh politicians clash over housing crisis as landlords exit

A Welsh Conservative MS has slammed the Welsh government for legislation that has driven landlords out of the market and forced people into temporary accommodation.

During a Senedd debate on housing, Plaid Cymru MS Siân Gwenllian warned that Wales is facing a housing crisis, with many people stuck in temporary accommodation.

However, Welsh Conservative MS Janet Finch-Saunders raised the point that government legislation has forced landlords to leave the market, further deepening the crisis.

10,000 people trapped in temporary accommodation

Ms Gwenllian told the debate that Wales has seen a rise in homelessness and people stuck on social housing waiting lists.

She said: “Wales is in a housing crisis, and that crisis is deepening every day. The evidence is clear and consistent across the entire housing sector and the results can be seen on our streets and in our communities.

“Homelessness is still rising. Waiting lists for social housing are unacceptably long, numbering around 170,000 people at present. More than 13,000 people have sought homelessness support from local authorities in the last year alone.

“Last October, more than 10,000 people were trapped in temporary accommodation, including almost 3,000 children, many without access to cooking or laundry facilities, sometimes for months and even years.”

Private landlords exit the market

However, Ms Finch-Saunders argued government legislation pushing landlords out of the market has caused the housing crisis.

She said: “Would you accept some responsibility for this, when you’ve supported all the way through all of the new legislation that came in that has seen private landlords just exit the market? It is now costing, for somebody in a hotel, £100 a day per adult, £76 per child.

“If you work it out, for a mother and two children, that’s over £3,000. Those people could have actually been in a private rental for around £900 now, a month. Temporary accommodation spend has just gone up. Do you accept some responsibility for backing that legislation, which has seen so many people now seeking and living in temporary accommodation?”

More than 1,190 properties have been lost from the Welsh PRS

Ms Gwenllian claimed that Conservative policies have contributed to Wales’ housing crisis, such as right-to-buy.

She said: “The supply of social housing has been halved during this recent period, and that is because of an entirely intentional policy of the Tories, namely the right to buy policy. So, no, I don’t accept that the problem is as you characterise it; the problem rests with you.

“The reality is that the private rented sector is entirely unaffordable for many. Rents in Wales are rising at the fastest rate in Britain, while the local housing allowance continues to be frozen by the UK Labour government. The gap between what people receive and what they need is growing, and that is driving more and more people into poverty and homelessness.”

However, Ms Gwenllian failed to mention that, according to Welsh government data, since the last election, more than 1,190 properties have been lost from the Welsh private rented sector.

The Welsh Labour government has also come under scrutiny for introducing Rent Smart Wales, which requires landlords to register and license their properties.

You can watch a clip of the housing debate below

Plenary01_30_26_14_59_19(1)

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Tenants face stamp duty bills under periodic tenancies – Financial Times

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Tenants face stamp duty bills under periodic tenancies – Financial Times

The government is apparently working on a fix to an anomaly in the Renters’ Rights Act that could see huge numbers of tenants paying stamp duty.

According to the Financial Times, under current tax rules, an indefinite or periodic tenancy requires a stamp duty land tax calculation each year.

Liability is triggered once cumulative rent paid reaches £125,000, at which point tax becomes due.

To illustrate the point, the newspaper highlights a student let in London with eight friends paying £1,000 a month. That would equate to £96,000 annually and under the Act, the students would be a facing a stamp duty bill of £573 just after a year.

Tenants will face the bill from May when assured shorthold tenancies are scrapped and replaced with periodic tenancies.

Stamp duty on leases

The Financial Times reports that around 150,000 private renting households could fall within scope within three years, rising to 250,000 by 2031 as tenancies roll on.

Stamp duty on leases is charged at 1% of the net present value of rent above the £125,000 threshold.

While the sums involved are usually small, the administrative burden is not.

Tenants would need to calculate and submit returns annually; a process the paper says they are likely to expect or understand.

Tenants will need to file a return

Tenants will also need to know that late filing attracts an automatic £100 penalty, rising to £200 after three months.

However, reaching the stamp duty threshold would take time for most renters.

The average London tenant would need around six years of occupation before cumulative rent hits £125,000.

Periodic tenancies could be liable

A government official confirmed to the FT that newly defined periodic tenancies could become liable but said the vast majority of private tenants would never reach that point.

The official added that where a lease is renewed following renegotiation, the term is treated as starting again, limiting exposure.

They also said that any changes needed to ‘accommodate the new tenancy system’ would be announced in a Budget.

One option under consideration would be to delay filing and payment until the stamp duty due reaches £5,000.

That would restrict liability to high-value properties after many years of occupation.

A government spokesperson told the FT: “The department is aware of the potential issue, and we are looking at how best to resolve [it].

“It is not an immediate problem for any tenant.

“No one will be affected until the rent they are paying is worth more than £125,000 — which would take most tenants more than seven years.”

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Damp and mould remain major issues in temporary accommodation

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Damp and mould remain major issues in temporary accommodation

A third of temporary accommodation is deemed inappropriate and poses a risk to tenants, with more than half showing signs of damp and mould, according to new data.

Findings by Switch Management reveal that, despite Awaab’s Law coming into force last year for social housing, local authorities are still struggling to deal with damp and mould in temporary accommodation, as many continue to rely on bed and breakfast placements.

The findings come amid warnings from housing charities that temporary accommodation has become a “normalised emergency”.

Challenge for many councils is having the capacity and systems in place

Awaab’s Law requires all social housing landlords, including councils that manage housing, to fix dangerous damp and mould within strict timeframes and to complete emergency repairs within 24 hours.

The findings are based on 1,800 calls with tenants living in temporary accommodation, alongside 600 visits to bed and breakfasts and hostels being used as temporary accommodation.

The data shows that 50% of on-site inspections identified signs of damp, mould, infestations or other hazards, while 30% of rooms were deemed inappropriate and posed a risk to tenants.

John Angus, managing director of Switch Management, said many councils are struggling to keep pace with their responsibilities.

He said: “Proactive tenant engagement is now a critical part of compliance, particularly in temporary accommodation, where conditions and tenancies can change rapidly.

“Awaab’s Law sets clear, legally binding expectations around how damp and mould must be identified, recorded and resolved. The challenge for many councils is having the capacity and systems in place to deliver and evidence compliance across large and often complex portfolios.

“Our review highlights that it will be extremely difficult for existing council teams to complete the surveys and visits.”

Temporary accommodation statistics have become normalised

The news comes after housing charities gave evidence to the Housing Select committee on the conditions in temporary accommodation.

Matt Downie, chief executive of Crisis, claimed the temporary accommodation crisis was becoming a normalised emergency.

He told the committee: “When the records are broken every time new statistics come through, not just for temporary accommodation but children in temporary accommodation, there appears no way of generating greater political expediency through the statistics because they’re normalised.

“The use of temporary accommodation, the conditions of temporary accommodation and the fact that people are having to be advised all the time, unless you put up with it, you’ll be intentionally homeless. It’s very distressing for everybody involved.

Mr Downie says the focus should not be on temporary accommodation alone, as it represents only a part of the wider housing crisis.

He said: “I think it’s something that requires both a sense of political activity and urgency in how it is dealt with.

“It also cannot be thought of simply as an issue of temporary accommodation, because it is a subset of the wider housing crisis we have. If we just think about how to have better temporary accommodation, we’ll lose sight of the bigger picture.”

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