Holiday home landlords getting spooked

Holiday let landlords using platforms like Airbnb are considering selling up thanks to rules coming into force.

Local authorities will be able to double council tax bills on second homes let out for at least 70 days per year, in plans unveiled by former Housing Secretary Michael Gove. Meanwhile mayors will be able to restrict new second homes in tourism hotspots, while owners could face spot checks

One landlord, who has been in the holiday let business for 25 years, has already sold a holiday let in Whitstable, Kent, and has two remaining in Essex and on the Isle of Wight, alongside one buy-to-let property.

She told The Telegraph: “I am very worried about the proposed restrictions. It took me so long to build the business but I am considering closing it if more rules come in.

“We used to be encouraged by the government to be entrepreneurial, but now we are being castigated.”

She added: “I’m currently sitting on the funds from the one sale and really holding off putting it back into rental. Who wants to have money in a property you can’t control?

“I’m now looking at putting the funds in a savings account or buying an annuity. It’s a far better return for much less hassle. Running a holiday let is a 24/7 job.”

Her short-term let portfolio has been used by tourists, as well as families in need of interim accommodation and by contractors.

Another landlord had 25 properties, but has already scaled back to five lets.

He said: “More regulatory hurdles and the fees that come with them will cause the cost of doing business to rise significantly and with it the price of insurance and debt.

“If the government is seriously worried about a housing shortage it needs to go back to basics; driving out investors isn’t the answer. I am certainly considering selling up altogether.”

The staycation sector boomed during the pandemic, which forced people to holiday domestically.

Now things are returning to normal however, encouraging some fair-weather landlords to invest elsewhere.

The nightly rate for holiday lets has dropped by 4.9% in August compared to the same period last year, analysis from data firm AirDNA has found.

The government changes were motivated by some areas being turned into tourist ghost towns, effectively losing their identities.

One such area is St Minver Lowlands in North Cornwall, where around 70% of all properties in the area comprise of holiday lets or second homes.

Comments 3

  1. The Conservative Party. The party of tons and miles of BLUE TAPE and crucifiers of property investors. First they LANDLORD BASHED the AST markets depriving many poorers people of homes supported by Shelter et al by insisting on over regulation. Some investors from the AST market were moving over to holiday rentals, as the politician imposed controls become choking. The GOVE and his merry muppets then turned on the Holiday lets market. The Conservative Party is not the party of business and enterprises, unless their big business mates control it. The Conservatives have lost the plot. They have failed the wider public by making rental access even more restricted. They have forgotten the carrot and made the stick bigger and heavier. The professional politicians live in their own, often distorted, world. It is not just the conservatives but most of the other daft political parties as well. Bring back common sense and abolish the PC and woke brigade to send them room 101 for ever.

  2. The new incurable cancer of the Western World crated b y politicians- red tape

    Unemployemtn is down.

    We are all completing incontinent forms produced by incompetent people to pass around to fellow incompetets.

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