Short-term lets: holiday homes to need planning permission under new proposals

A consultation published this week by the Department for Levelling Up, Housing and Communities proposes introducing planning permission for an existing home to be used as a short-term holiday let.

Summary of the proposals

• The introduction of a new use class for short-term lets
• The potential introduction of a new permitted development right for the change of use from a dwellinghouse to a short-term let
• The potential introduction of a new permitted development right for the change of use from a short-term let to a dwellinghouse
• Flexibility for homeowners to let out their home for some nights in a calendar year may be provided through either change to the dwellinghouse use class or an additional permitted development right

Plans to tighten rules on short-term holiday lets

The increase in short-term lets in certain areas, such as scenic coastal towns, cities, and national parks like the Lake District, can drive up housing prices and make it difficult for locals to find affordable homes.

The proposed changes would see a planning use class created for short-term lets not used as a sole or primary home, alongside new permitted development rights, meaning planning permission is not needed in areas where local authorities choose not to use these controls.

The consultation will also consider whether homeowners can let out their property for up to a specified number of nights in a calendar year without planning permission.

These measures focus on short-term lets, and the changes will not impact B&Bs, hostels or hotels. 

The register of short-term lets is being introduced through the Levelling Up and Regeneration Bill, currently going through Parliament.

When will the changes come into effect?

Subject to the consultation's outcome, the planning changes would be introduced through secondary legislation later in 2023 and apply in England only.

Further reading: Introduction of a use class for short-term lets and associated permitted development rights

Contact our solicitors for property law advice

Our property law solicitors can help you understand changes to the rules surrounding short-term holiday lets. We are experienced in assisting homeowners and landlords with buying and selling properties, tenancy agreements, landlord and tenant disputes, and more.

We have solicitors in the Lake District, Brighton, Sussex, and London and work with clients across the UK.