The UK Government has initiated a far-reaching review into the growth of short-term holiday lets throughout England, designed to enhance the market for locals in high-demand tourist areas while maintaining a robust visitor economy.
Call for Evidence: Understanding the Impact
The review features an open call for evidence to examine the effect of the increasing number of short-term holiday rentals, which are being partly driven by the use of online booking websites like Airbnb. It invites views from a broad range of stakeholders to gain further insight into both the benefits and issues that short-term lets pose for consumers, communities, and the housing market.
Areas of Emphasis:
- The impact on housing availability and affordability
- Increasing anxiety about anti-social behaviour, such as noise and litter
- Compliance with health and safety, including reduced guest protections
- Support for tourists and local economies
Possible Measures Under Consideration
In response to these concerns, the Government is exploring a range of regulatory measures, which could include:
- A registration scheme for all short-term lets
- A ‘kitemark’ or quality assurance system with spot checks for compliance with gas safety, noise levels, and cleanliness
- A host self-certification process prior to trading
- A unified source of advice setting out hosts’ legal obligations and platforms of letting
Words of Ministers
“We’ve had a huge increase in short-term holiday accommodation. While we’re pleased to see the potential benefits to tourism, it’s important we safeguard community interests and make sure there are high-quality, safe choices for visitors. This review will enable us to consider the correct steps to find that balance.”
“Platforms such as Airbnb have increased tourism, but we need to make sure this does not push local residents out. We’ve already enabled councils to charge double council tax on second homes, and this review will provide us with a better understanding of how short-term lets are impacting local housing.”
What’s Happening Elsewhere in the UK?
The devolved administrations have already started regulating the industry:
- Scotland: A short-term letting licensing scheme was launched in October 2022, requiring involvement by all local councils.
- Northern Ireland: A nationally approved certificate is needed to provide tourist accommodation.
- Wales: Proposals are in place to make provision for a statutory registration or licensing system for short-term holiday accommodation.
European Comparison
In Europe, various other countries already have tight controls on holiday rentals:
- Portugal: All guest rooms need to be registered electronically prior to letting.
- Greece: Owners need to register if they let their properties to paying visitors.
- Ireland: Only principal residences may be let short-term, and only with prior registration, in designated ‘Rent Pressure Zones.’
Who Should Answer the Call for Evidence?
Though open to all, the Government is especially interested in hearing from:
- Hosts who run short-term or holiday lets
- Guest accommodation businesses, including booking platforms and property management companies
- Local authorities, fire services, and enforcement agencies
- Tourism industry representatives, including destination management organisations
The consultation was first set out in the Tourism Recovery Plan published in June 2021, and the call for evidence lasted for 12 weeks.
Next Steps
In the wake of the consultation ending, the Government made a statement on 19 February 2024 announcing that it plans to go ahead with creating a national scheme for short-term lets in England.
The Government’s goal is to secure standard consistency, improve the safety of guests traveling short-term, and safeguard local communities—all without suppressing the potential for the tourism industry’s growth.