Proposed Legislation in England

UK Government to Introduce Registration Scheme for Short-Term Lets in England: A Call for Public Consultation

The public consultation on the proposed short-term lets registration scheme and planning changes will be open for eight weeks from April 12, 2023, to June 7, 2023

Short-term lets, such as holiday cottages, home stays, and self-catering apartments, have long been part of the UK's visitor economy. However, with the emergence of the sharing economy and digital platforms, the guest accommodation sector has changed significantly over the last fifteen years, leading to an increase in the short-term letting of residential premises. While the government recognizes the benefits of short-term lets, such as income for homeowners and increased choice for consumers, there are concerns about inconsistencies within the regulatory framework, including monitoring compliance with health and safety regulations and the impact on the availability and affordability of local rental housing. To improve their understanding of the benefits and challenges of short-term lets, the government published a call for evidence in response to stakeholder calls for further action. 

The UK government has received 4,000 responses to its call for evidence on short-term lets and has found that there is support for a light-touch registration scheme for these types of accommodations. The government is committed to introducing a registration scheme through the Levelling Up and Regeneration Bill, which would provide valuable data for local authorities to manage the housing market impact of high numbers of short-term lets. The details of how the scheme will operate will be explored through further consultation, and the changes would apply in England only. The government wants to support the visitor economy while also protecting local communities, including in respect of the availability of housing to rent or buy. 

The registration scheme in England will focus only on short-term lets and not include other types of guest accommodation like hotels, B&Bs, and professional providers of self-catering accommodation. The definition of "short-term rental property" for the purpose of the scheme will be as defined in the relevant government amendment to the Levelling Up and Regeneration Bill. The report uses the term "premises" to mean short-term rental property as defined above. Properties falling into the short-term let planning use class could form a subset of this broader definition. These proposals relate to England only. 

The Department of Levelling Up, Housing and Communities (DLUHC) is seeking views on the introduction of a use class for short-term lets and proposed planning changes to use classes and permitted development rights. The aim is to help local areas manage the further proliferation of short-term lets and support sustainable communities. The proposed permitted development rights would provide flexibility where short-term lets are not a local issue but allow for this flexibility to be removed where there is a local concern. Planning permission would be required where there is a material change of use to a short-term let. The consultation is separate but will run concurrently with the DCMS consultation. The DLUHC is seeking views on the planning application fee required where permission is required for the development of a new-build short-term let. 

The public consultation on the proposed short-term lets registration scheme and planning changes will be open for eight weeks from April 12, 2023, to June 7, 2023. The government is currently working on legislation for the registration scheme, and responses to the consultation will help in developing the detailed policy design for the scheme. Secondary legislation will also be required to make the scheme operational, and it is expected to become operational in 2024. 

For more information on the consultation on the proposed registration scheme for short-term lets in England, you can visit this link: https://www.gov.uk/government/consultations/consultation-on-a-registration-scheme-for-short-term-lets-in-england/consultation-on-a-registration-scheme-for-short-term-lets-in-england