Regional mayors could have the power to stop people renting out second properties for less than 90 days under plans being drawn up by housing secretary Michael Gove, The Telegraph reports.
Landlords would have to apply for planning permission for a change of use if they wanted to enter the short-term letting market.
The changes are being made to the Levelling Up and Regeneration Bill.
There are fears that Airbnbs are destabilising communities in holiday hotspots by diminishing the countries long-term private rented stock.
Geoff Garrett, of the mortgage broker Henry Dannell, told The Telegraph: “It’ll be bad for families who are well-established in places such as Cornwall, and have owned their homes for a long time.
“On the other hand, it could be beneficial for some young people in those areas who are trying to buy for the first time and have been priced out by property investors from other parts of the country.”
A spokesman for the Department of Levelling Up, Housing and Communities said: “We’re taking action to combat the adverse impact that second homes can have on local communities – particularly in tourist areas such as Cornwall – by closing tax loopholes, introducing higher rates of stamp duty and empowering councils to apply a tax premium of up to 100pc on second homes.”
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Last week it emerged that landlords can make around 21% more by switching to holiday lets, meaning there is a financial incentive to do so.
However there’s been calls for regulatory action to limit the number of short-term lets in particular areas.
Tim Farron, MP for Westmorland and Lonsdale, has been vocal on the issue, saying he’s witnessed the trend of his constituents being evicted by their landlords only for their properties to be converted into an Airbnbs.
Having a lack of rental stock can drive up prices, making it difficult to for businesses to find staff in their local area.
There will be implications.
So,” Landlords would have to apply for planning permission for a change of use if they wanted to enter the short-term letting market.” The implication here being that if you have to apply for permission in certain areas you are quite likely not to get it. Yet another restriction on a landlord doing what they want with their own property.
So the landlord eithers stays in the PRS or just sells up. With a failed planning consent they are unlikely to return to the PRS and would most likely opt to sell. The locals won’t benefit as there are still enough wealthy ” outsiders” around who would be happy to snap places up as holiday homes for themselves and their families and friends who would laugh at double or treble council tax.