Is the clampdown on holiday lets a good thing?
The popularity of holiday lets and Airbnb properties has gone through the roof in recent times. In coastal resorts alone, the number of holiday lets has increased by 56% in just five years. Move Places looks at what this rise means for owner-occupiers, current holiday let landlords and future investors.
Consequences for local people
Many Airbnb properties were initially bought in thriving communities that were a happy mix of holiday makers and local residents. Large numbers of holiday lets, however, can have serious consequences for the immediate area. Those wanting to stay in their own community are finding that many entry level and family homes are being snapped up by property investors looking to make money from holiday rentals.
The lack of property choice for owner-occupiers often forces them to move elsewhere, which has been deemed unacceptable. The result of a booming holiday let industry can also be rising house prices as a result of wealthy investors from outside the area being able to afford the asking price and sometimes even more.
Government review on holiday lets
A Government review announced in July 2022 is looking into the effects of short term holiday lets and aims to improve the housing market for people living in popular vacation destinations.
A scheme proposed in the review could see physical checks of premises to make sure that regulations around health and safety, anti-social behaviour and noise are met. And from April 2023, owners of second homes in England and Wales will have to prove their properties have been let for a minimum of 70 days in a year and are made available to let for a minimum of 140 days. If this is not proven, the landlord may lose their benefit of claiming cheaper business rate relief, instead of paying council tax.
Local councils take action
The detrimental effect of holiday lets on local housing markets is now being tackled more seriously by some councils. In a number of areas, ‘out of towners’ are banned from buying new builds in the area. Whilst in Cornwall, second homeowners are charged twice the normal rate of council tax, where previously they had often not paid council tax at all. Schemes of this nature are designed to keep local housing for local people, deter outside investment and to help stop families being priced out of the housing market.
Will owner-occupiers benefit from these schemes?
Clampdowns on holiday lets could be a good thing for prospective owner-occupiers. The initiatives suggested in the Government review and those being implemented by local councils could put off prospective Airbnb owners, as they would have to comply with increasingly stringent regulations and pay more tax. This would potentially damage their all-important yield. In areas where new builds will only be sold to local people, this could also give purchasers a more realistic chance to live where they want.
We can help
Move Places lists properties for sale from across the country. If you are looking for a family home or are looking to get your foot on the housing ladder, take a look at what’s available and contact us if you have a property to sell.