20 Feb 2024

CIH responds to planning reforms to tackle short term lets

We welcome government’s announcement to reform planning rules to manage the impact on housing markets and availability created by the steep rise of short term lets (STLs) in certain locations. The changes follow two consultations undertaken last summer tackling the issue from both a planning and registration perspective.

The announcement includes the introduction of a mandatory national register will help local and national government to better understand the extent of STLs and ensure compliance with requirements for health and safety. However, concerns remain around the practicality of the planning proposals highlighted. 

The intention for associated permitted development rights to be established, including a right allowing a dwelling to be changed to a STL, indicates local authorities will have to rely on Article 4 directions to control the situation. Which also means local authorities will be able to remove these permissions and require full planning permission if they deem it necessary.

CIH’s consultation response last summer highlighted that there are a number of issues with using Article 4 directions. As it currently exists, it isn’t a strong enough tool to control the scenario in many locations and is likely to put significant pressures on local authority teams. It has also been sporadic in its success. 

The 90-day rule (which means homeowners will still be able to let out their homes as a STL for up to 90 nights throughout a year without planning permission), already exists in London, and has provided impossible to monitor. Research by London Councils suggests that the 90-day rule has not stopped the growth in STLs and that multiple online letting platforms mean property owners can circumvent the rules, with enforcement proving to be an impossible task for local authorities.

James Prestwich, director of policy and external affairs at Chartered Institute of Housing commented:

“We welcome the news that government is taking action on short term let (STLs). The introduction of a mandatory national register will help local and national government to better understand the extent of STLs and ensure compliance with requirements for health and safety. However, we have concerns around the planning proposals outlined, particularly the introduction of associated permitted development rights (PDR) to allow conversions to/from dwellings to STLs and the 90-day rule (as already in place in London). We await further details but question the practicality and effectiveness of these measures, and their enforceability.“

We will provide more analysis and comment, once further details have been released.