New holiday lets rules 'may worsen housing crisis'

London Councils fears that planning changes will lead to the overnight loss of thousands of homes from the capital's permanent housing stock

New controls on holiday and short-term lets planned to be introduced in England this summer could worsen the capital's housing crisis, London Councils warned.

The changes mean people may need to seek permission from the council to turn their home into a short-term let.

Only new short-term lets would require planning permission, with existing ones automatically reclassified - which the cross-party group fears will lead to the "overnight loss of thousands of homes" from the capital's permanent housing stock.

London Councils has written a letter to Housing Secretary Michael Gove about its concerns, to which the government said it would respond in due course.

'Extremely concerned'

London Councils estimates there are at least 43,000 short-term lets in the capital – equivalent to one in every 85 London homes – and believes a significant portion of these would qualify for a new planning category, known as "use class".

The group, which represents London's 32 borough councils and the City of London, argues that automatically reclassifying existing short-term lets - properties not used as the sole or main home - into the "use class" without requiring planning permission "undermines efforts to preserve homes for residents amid worsening housing pressures and homelessness rates".

Darren Rodwell, London Councils’ executive member for regeneration, housing and planning, said: "For too many years the short-term lets market has been growing out of control.

“With housing and homelessness pressures in the capital worse than ever, boroughs are extremely concerned about losing permanent housing stock. The priority has to be ensuring homes are available for long-term residents.

“We welcome the government’s move to improve regulation of the sector, but the blanket reclassification of existing short-term lets into a new use class could strip the capital of thousands of homes."

He said the boroughs were "keen to work with ministers on developing these proposals further".

A Department for Levelling Up, Housing and Communities spokesperson said: "It is for each council in London to enforce the existing legislation to ensure everyone follows the rules in order to provide the permanent homes Londoners need, and the register of short term lets will help local authorities to apply and enforce the planning changes.

“We have announced that we will introduce a new short-term let use class and associated permitted development rights, with further information to be provided in due course."