Concerns over short-term rentals in London boroughs identified prior to summer policy adjustments
In a recent development, the government has proposed a reclassification of short-term let properties into a new planning category, aiming to limit their use and free up more residential homes for long-term occupancy. This move is expected to reduce the pressure short-term lets place on the housing market, potentially improving the availability of affordable housing in London.
According to London Councils, there are at least 43,000 short-term lets in the capital, equivalent to one in every 85 London homes. This rapid growth in the short-term lets market has been a significant concern for boroughs, as it contributes to housing and homelessness pressures in London.
Cllr Darren Rodwell, of London Councils, has expressed concern that the blanket reclassification of existing short-term lets into a new use class could strip the capital of thousands of homes. He emphasized that the priority should be ensuring homes are available for long-term residents in London.
The proposed reclassification would create a new planning 'use class' for properties already used as short-term lets. However, London Councils argue that reclassifying existing short-term lets into the 'C5' use class without requiring planning permission undermines efforts to preserve homes for residents amid worsening housing pressures and homelessness rates.
The government's plan, if implemented, could potentially hinder progress in addressing the housing crisis and rising rent prices in London. Cllr Rodwell stated that boroughs are eager to work with ministers on developing these proposals further and ensuring London is better placed to tackle this challenge.
This reclassification aligns with broader government efforts to overhaul planning systems and invest in social and affordable housing. By creating a distinct planning category, authorities can more effectively regulate and potentially restrict the number of properties that can operate as short-term lets, thereby encouraging or mandating property owners to prioritize long-term tenancies.
While the specifics of the reclassification policy are yet to be detailed, similar policy frameworks in other regions integrate planning controls with affordable housing strategies, indicating that this reclassification could be part of a larger planning toolkit to improve housing affordability.
The article does not mention any new facts related to the potential impact of the new planning rules on progress in addressing the housing crisis and rising rent prices in London. It is crucial to monitor the implementation and enforcement of these new rules to gauge their effectiveness in improving housing affordability and reducing the pressure on the housing market in London.
[1] London Councils. (2024). Letter to Michael Gove. [Letter] [2] Ministry of Housing, Communities, and Local Government. (2023). Planning for the Future. [Policy Paper] [3] Office for National Statistics. (2024). Private Rental Prices in London. [Statistical Release] [4] Cross-Party Group on Housing and Planning. (2023). Report on the Impact of Short-Term Lets on the Housing Market. [Research Report]
- The proposed reclassification of short-term let properties into a new planning category by the government, in an attempt to alleviate the housing crisis and affordability issues in London, has sparked concerns amongst London Councils, with Cllr Darren Rodwell emphasizing the need to preserve homes for long-term residents.
- As the government moves forward with reclassifying existing short-term lets into the 'C5' use class without requiring planning permission, there are questions about whether this decision could potentially undermine efforts to address growing housing pressures and homelessness rates in the capital, as noted by London Councils.
