Labour’s New Rules on Holiday & Short-Term Lets

Kier Starmer’s Labour has pickpocketed another piece of planned Tory housing legislation: a proposed crackdown on holiday and short-term lets.

Housing ministers propose changing planning rules for holiday lets and introducing a register of short-term lets for England ‘as soon as possible’, according to a leak published across the media.

Scotland and Wales already operate a similar registration system.

Tory Levelling-Up Secretary Michael Gove proposed both measures in 2022 as part of his rent and housing reform drive, but the policies were dropped in the run-up to the July 2024 general election.

The return of the policy under Labour has caught many by surprise as the changes were not listed as proposed legislation in the recent King’s Speech.

Planning permission

The new legislation would require councils to grant planning permission to new holiday and short-term lets. Existing short-term lets will not need permission but must register with the database.

The aim is to give councils control over the number of holiday lets in their areas.

Many councils complain that too many holiday lets in an area lead to parking and antisocial behaviour problems, damage council services, and drive up property prices beyond the affordability of local people.

A Housing Ministry spokesman confirmed the proposals: “We are introducing a short-term lets registration scheme to help give councils greater oversight and control of housing in their areas.”

Andy Fenner, chief executive of the Short Term Accommodation Association (STAA) trade body, warned that a locally run scheme could be a “mess”.

The 90-day planning rule

“We are concerned that the registration scheme will not be national. We’re concerned that it will be introduced by county, region or council.

“We are worried that a registration scheme is one step away from some poorly done licensing scheme, which is not what we want.”

The Tory scheme proposed renting out a holiday or short-term let for more than 90 nights a year, which would be a change of use for the property that would need permission from the local council.

London already has the 90-day rule.

Hotels, hostels and bed-and-breakfasts are not included, but serviced apartments will probably be caught in the short-term letting net.

What is a short-term let?

A short-term or holiday let is a residential property rented to guests for fewer than 31 nights in a row. The property is self-contained and does not become the primary home of any visitors.

The host can live in the property and share accommodation with guests, let rooms while absent from their home or rent out a property where they do not live, such as a second home.

View Related Handbook Page