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Will Gove's new planning rules for short-term lets help the PRS?

Journalist: Andreea Dulgheru, Medianett Publishing

ended 22. February 2024

On 19th February, Michael Gove announced plans to require planning permission for future short-term lets, in a bid to protect local residents from being pushed out of their communities.

Under the new rules, landlords would be required to obtain planning permission in order to let their properties as short-term rental homes, unless they are renting the homes for 90 days or less.

The proposals also stipulate the creation of two new planning ‘use classes’ for short-term lets, and the launch of a new mandatory national register to give authorities the information they need about short-term lets in their area and their effects on the community, as well as underpin compliance with key health and safety regulations.

We're putting togethe a feature on BTL Insider to assess whether these proposed rules will indeed help the PRS, or if they don't go far enough. For this, we'd like experts to answer the following questions:

  1. How do you think the new rules will impact the overall PRS market?
  2. Could these proposals trigger a rush of new short-term let registrations before the rules come into force?
  3. Are these new proposed rules enough to stop the market from being over-saturated with short-term lets, or is this move coming too late in the game?
  4. What other measures should the government take in order to keep a balance between short- and long-term lets in the PRS?

 

 

 

2 responses from the Newspage community

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James Miller
Founder at Clean Break Properties
New proposed legislation is good news for the PRS market, particularly in areas where STR stock has a disproportional impact on the community during the low season such as seaside towns.

Outside of Scotland, there is currently no registration required to short let your property. Some relief is available for business rates but the criteria are currently self declared and not policed. I think a 'rush' is therefore unlikely.

The new proposed rules are a great start and will definitely help address the balance. The attention needs to be on compliance and policing of standards and safety which is a far tougher nut to crack than just collecting licence fees.

The change in market conditions is already addressing the balance and we are seeing more STR's going back to regular long lets in the wake of COVID. If the Government truly want to address the balance then they need to stop hiding behind the increase of STR's and work on building more homes rather than removing the targets
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Akhil Mair
Director at Our Mortgage Broker
1. How do you think the new rules will impact the overall PRS market?
The new rules aim to foster community protection while ensuring fair play in the PRS. Optimistically, they could inject stability and balance into the market.

2. Could these proposals trigger a rush of new short-term let registrations before the rules come into force?
It's possible, but it's also an opportunity for landlords to adapt and embrace the changes positively.

3. Are these new proposed rules enough to stop the market from being over-saturated with short-term lets, or is this move coming too late in the game?
Better late than never. While it's a significant step, ongoing monitoring and adaptability will be key to maintaining equilibrium.

4. What other measures should the government take in order to keep a balance between short- and long-term lets in the PRS?
Encouraging diverse housing options and fostering transparent regulations could help strike the perfect balance for all involved.