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Consultation on planning permission for short term lets

Journalist: Melissa Lawford, The Telegraph

ended 13. April 2023

How much of an impact will the planned introduction of a planning permission requirement for short term lets have for holiday let owners? What will this mean for buy-to-let investors who have been shifting away from long-term lets to holiday lets in the wake of tax changes? How will these changes affect communities that rely on tourism?

3 responses from the Newspage community

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Editor
Bob Singh
Founder at Chess Mortgages
Yet another layer of bureaucracy for limping and bruised landlords!

Lenders will have to align their policies to permit applications on the submission of the license application and not on the granting thereof. Unless local authorities set up special licensing desks we could see huge backlogs and thus hamper the purchase process.

This will heighten demand for licensed properties in those areas but it’s a good way to control this market to stop it saturating the area thus adversely affecting the local communities who have long protested at the proliferation of holidays let’s in their area

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
The government have to be sure footed to get this balance right. Tourism brings much to both local and national economies and short term lets are an important aspect of this. Some families are struggling, so often opt for letting out a room, or even their home whilst they are away. This planning proposal will definitely protect property for the local population, but to what detriment?
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
As a landlord, making a profit on long-term lets in this market is like trying to eat a scone without any jam - it's just not as sweet as it used to be. Some landlords are therefore giving up their scones altogether. And with the constantly added regulations (tax and otherwise) the sector has simply not remained lucrative.

The new planning regulations may also be driving long-term property investors away from the market. Some landlords are consequently switching to holiday lets, but with the proposed planning permission requirement, it's increasingly likely that landlords will then move their money elsewhere.

There will be plenty of unintended consequences from this, as the chancellor well knows but is uninterested in responding to at this point.