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Labour government pushes forward with crackdown on short-term lets

The Labour government is advancing its plans to tighten regulations on short-term lets across England, with the goal of giving local authorities more power to manage the growing sector. The government is proposing a mandatory national register for short-term lets and granting councils the authority to require planning consent for landlords where necessary.

National register for short-term lets on the horizon
A source from the Ministry of Housing told The Telegraph that the registration scheme will be implemented “as quickly as possible.” This move is part of a broader strategy to curb the rapid increase in short-term rentals, which has raised concerns about its impact on the availability of long-term housing and local communities.

While Wales already has a similar register under the “Article 4 Direction” policy, which also covers second homes, and Northern Ireland has long had a registration system in place, England is now following suit with a national framework. The proposed regulations were initially introduced by former Conservative housing secretary Michael Gove in December 2022, as part of efforts to address planning concerns and housing availability.

Concerns over localised control and potential pitfalls
However, the introduction of a locally managed registration scheme has sparked concerns within the industry. Andy Fenner, Chief Executive of the Short Term Accommodation Association (STAA), expressed his apprehensions, stating, “We are very concerned that the registration scheme is not going to be national. We’re concerned that it is going to be introduced either by county, region or council. We are worried that it [a registration scheme] is one step away from some poorly done licensing scheme, which is not what we want.”

These fears are echoed by industry experts who warn that similar schemes elsewhere have led to operational difficulties for landlords and increased costs. Sophie Lang of ARLA Propertymark noted, “Similar measures elsewhere have led to operational issues for landlords regarding the short-term lets market, which in turn has driven up prices and damaged tourism in some areas that depend on it. It’s vital to have a fair balance that encourages landlords back into the long-term rental market while still supporting local economies that rely on tourism.”

Government aims for greater oversight
Despite these concerns, the Ministry of Housing remains committed to introducing the registration scheme as part of its broader plan to enhance oversight of the short-term rental market. A ministry spokesman said, “We are introducing a short-term lets registration scheme to help give councils greater oversight and control of housing in their areas.”

As the government moves forward with these new regulations, the impact on both landlords and local communities will be closely watched. The balance between protecting housing availability and supporting tourism-driven economies remains a key consideration as the plans take shape.

 

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