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Rumours of compulsory registration for holiday let landlords are likely to become a reality as an amendment calling for a national database of short-term lets was tacked on to the Levelling Up and Regeneration Bill.
Whispers of clandestine talks about regulating holiday lets between ministers and the UK Short Term Accommodation Association (STAA) have circulated Westminster corridors for weeks following a consultation asking for views on the idea distributed by the Department of Digital, Culture, Media and Sport (DCMS) in the summer.
Officials from the STAA met DCMS minister Stuart Andrew days before he announced both sides were working on ‘the finer points’ of likely legislation.
The STAA says the group represents thousands of holiday let owners but is more of a trade body for short-term let websites, such as Airbnb, Vrbo and other online cottage management portals.
The STAA has pushed for a registration scheme to collect data from the sector to support policy decisions.
In contrast, the government has long wanted to tie holiday lets into the planning regime, as already happens in London.
No planning permission is needed for a holiday let in the capital, provided council tax is paid on the property, and the home is let for no more than 90 days each year.
STAA Chief executive officer Andy Fenner said: “Holiday lets represent a tiny proportion of the total housing market yet provide vital flexible jobs and investment in our communities.
“The STAA wants the highest standards across our industry. Clear, easy-to-use registration helps us achieve that.
“We have worked closely with the Government’s tourism officials to help develop this registration scheme and are pleased that it has been announced.”
A recent report published by think-tank Oxford Economics revealed short-term holiday lets poured £27.7 billion into communities across the UK in 2021. They also provided 500,000 jobs and supported thousands of local businesses.
The study also found that 56 per cent of the money visitors spend goes directly to landlord hosts.
The registration scheme is limited to short-term lets in England.
Scotland has already brought in compulsory licensing from October 22. Landlords must hold a licence before accepting bookings or taking in guests. Legislation going through the Scottish parliament means holiday homeowners must have a licence by October 1, 2023.
Wales is ready to launch short-term let registration, but Senedd members have changed the criteria for applying for business rates and opened the door to higher council tax rates.
A short-term let is a fully furnished home rented out for between one and 30 days.
Yes, short-term lets qualify for several tax breaks provided the home is let out for more than the number of qualifying days.
Tax breaks include paying business rates rather than council tax, capital gains tax relief and inheritance tax relief.
The qualifying periods for tax breaks differ depending on location.
In England, the property qualifies as a short-term let if rented out for 70 days or more a year and is available for 140 to rent for 140 days or more.
In Wales, the qualifying letting period is 182 days a year, while the home must be available for 252 days.
The STAA, or Short-term Accommodation Association, represents holiday let companies and landlords. Membership for individual landlords is £10 a month.
The bill aims to create a structure for equally sharing the nation’s prosperity.