Yahoo Finance Government declares war on holiday homes
Second home owners could be banned from renting out their properties on websites such as Airbnb, in new plans being drawn up by the Housing Secretary Michael Gove, The Telegraph understands.
The proposals would stop second home owners from renting out their properties as short-term holiday lets, as the Government cracks down on landlords driving up house prices in holiday hotspots.
Mr Gove’s changes to the Levelling Up and Regeneration Bill would give regional mayors the power to restrict people renting out second properties for fewer than 90 days. Landlords would instead have to apply for planning permission for a change of use.
Jonathan Samuels, of the broker Octane Capital, said the proposals were another attempt to inflict pain on rental investors.
He said: “As is the case with all government rental market initiatives, there seems to be little thought as to the unintended consequences that will arise when they further reduce the level of available rental properties on the market.
“As always, it will be the tenant who bears the brunt of escalating costs due to inadequate stock.”
Geoff Garrett, of the mortgage broker Henry Dannell, warned that pushing buy-to-let investors out of holiday hot spots would also hurt residential homeowners.
“It’ll be bad for families who are well-established in places such as Cornwall, and have owned their homes for a long time,” he said. “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.”
Last week Mr Gove published plans to overhaul the private rental sector, which would improve tenant rights but leave landlords exposed to additional costs and months of arrears.
Landlords will be forced to rent to people on benefits and reimburse tenants whose homes do not meet new minimum standards, under the reforms.
Renters will also get new rights to request to keep pets in their rental properties. Landlords will not be able to refuse without good reason. The changes come as rate rises on buy-to-let mortgages are already eating into investors’ profits.
Meanwhile, Brighton is on the verge of becoming the first city in England to crack down on second home ownership.
