Summer modifications in short-term rentals spark worry among London boroughs
In the heart of London, a significant debate is unfolding regarding the future of short-term lets, such as those popularised by platforms like Airbnb. London Councils, the umbrella body representing all 32 boroughs and the City of London, has raised concerns about the government's plans to regulate the short-term and holiday lets sector.
The concerns stem from the potential reclassification of existing short-term lets into a new planning category, which could have far-reaching implications for London's housing crisis and homelessness rates. Cllr Darren Rodwell, of London Councils, has expressed apprehension about the potential impact of this move, stating that it could strip the capital of thousands of homes.
According to London Councils' estimates, there are at least 43,000 short-term lets in the capital, equivalent to one in every 85 London homes. If these properties are reclassified under stricter planning rules, many could be required to return to the long-term rental or owner-occupied market. This shift could increase the availability of affordable rental homes, a crucial step in addressing London's chronic housing shortage and helping to reduce homelessness.
The proposed reclassification could also help reduce housing market fragmentation. Short-term lets often reduce the stock of long-term housing available to residents, driving up rents and exacerbating affordability problems. By discouraging the conversion of residential properties into short-term lets, reclassification could help stabilise rents, thereby improving housing stability.
However, the new category would likely entail more stringent regulatory oversight, planning permission requirements, and potentially affect letting agents' operations. This could discourage the use of short-term lets for investment or speculative purposes, indirectly supporting more stable long-term housing availability.
Moreover, by facilitating more long-term rental options and supporting social housing initiatives already prioritized by government policy, reclassification could contribute to lowering homelessness rates over time.
Despite these potential benefits, there is no direct data quantifying the exact impact of reclassification on homelessness or housing supply in London. However, the government's focus on social housing delivery and tenant rights suggests that policies restricting short-term lets fit a broader strategy to improve housing stability and reduce homelessness.
The government's proposal includes creating a new planning 'use class' for properties already used as short-term lets, with the aim of freeing up more affordable housing for locals. 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 new planning rules for short-term let properties are due to come into place 'this summer'. Cllr Rodwell, open to working with ministers to develop the government's proposals further, has emphasised the priority should be ensuring homes are available for long-term residents.
[1] London Councils (2024). London Councils responds to government's proposals to regulate short-term lets. [online] Available at: https://www.londoncouncils.gov.uk/news/london-councils-responds-to-governments-proposals-to-regulate-short-term-lets
[2] Shelter (2024). Reclassifying short-term lets could help address London's housing crisis. [online] Available at: https://www.shelter.org.uk/media/news/reclassifying-short-term-lets-could-help-address-londons-housing-crisis
- The proposed reclassification of short-term lets into a new planning category, as outlined by the government, could be a significant policy-and-legislation step in addressing London's housing crisis and homelessness rates, as it may increase the availability of affordable long-term rentals.
- The ongoing debate surrounding the future of short-term lets in London's politics involves discussions about the potential impact of reclassifying these properties, with concerns being raised about the potential effects on general-news topics such as housing rates and homelessness.
