Apr

LATEST: Govt to launch probe into problems being caused by short-lets boom

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The Government is to investigate the short term lettings sector and the problems platforms like Airbnb are causing within the wider property market and economy, it has been announced.

Issues to be examined include damage to housing supply, avoidance of health and safety regulations and anti-social behaviour by holidaymakers.

“The call for evidence will be followed by a consultation, which will enable the Government to put forward proportionate policy options based on a firm evidence base,” said housing minister Eddie Hughes (pictured).

The consultation and call for evidence is to be launched by the Department for Digital, Culture, Media and Sport (DCMS), he added, in response to a question from shadow minister Rachel Maskell.

She is worried that landlords of traditional lets are using Section 21 eviction notices to eject long-standing tenants in some areas in favour of more profitable student tenants and holiday lets.
Landlord may remember that only a few years ago the Government was largely indifferent to regulation of the short-lets sector.

Ministerial action

But a growing campaign in England to highlight the problems it is creating within holiday hotspots within the Lake District and SW coastal towns and villages, and action by the Scottish government to prevent its capital from becoming a short-let hotspot, have prompted Ministers into action.

The allure of short-lets to some landlords are very tempting – annual rental revenues can be double or even triple those of long-term lets, while the laws governing this sector are non-existent or very light and taxation lower.
Also, outside London there are no – or lighter – restrictions on the number of days a property can be let out on a short-term basis before planning permission must be sought.

Read more: the ultimate guide to short-let insurance.

Last year Airbnb tried to bat off criticism that it is encouraging more and more homeowners and landlords to rent out their properties on a short-term basis with a White Paper.

This was written following consultations with local authorities, policymakers and businesses, and its key message was that a national registration for short-let properties should be introduced – something the new DCMS initiative, which has yet to be officially launched, will take on board.

Last week Airbnb caused a stir by saying it may ask property owners using its platform to reveal if they have used Section 21 eviction to clear sitting tenants from their property in order to cash-in on the growing sector.

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