UK Government to ban second home owners from renting out properties as short-term lets in England

The UK Government are set to ban second home owners from renting out their properties as short-term holiday lets in England.

The plans being drawn up by the Housing Secretary Michael Gove would take the UK Government in a similar direction to plans being rolled out in Wales by the Welsh Government.

It would be part of a UK Government crack down on landlords driving up house prices in holiday hotspots, sources told the Telegraph newspaper.

It comes despite Welsh Conservative opposition to plans to crack down on holidays homes rented out for only a small part of the year in Wales.

Michael 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.

A spokesman for the Department of Levelling Up, Housing and Communities told the Telegraph: “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.”

In Wales, the criteria for self-catering accommodation being liable for business rates instead of council tax will be raised from 70 to 182 days in April of next year.

‘Shocking’

Welsh Conservatives have opposed moves to tackle holiday homes let out as businesses, with Aberconwy Senedd Member Janet Finch-Saunders accusing the Welsh Government of being “obsessed” with second homes.

“Industry data suggests that Wales needs to build 12,000 homes a year by 2031 but before the pandemic we saw that the Welsh Government could barely manage half of that,” Janet Finch-Saunders said.

“Shockingly in 2018-19, we saw the number of properties completed fall to 30.6% below levels seen prior to devolution.

“This failure to deliver on new homes is compounded by the reality that the Welsh Government refuses to listen to the common-sense policy solutions that I have put forward, including the re-introduction of the Right-to-Buy scheme and amendments to planning policy.

“Instead, the Welsh Government has become obsessed with targeting second homeowners and legitimate holiday let businesses.

“However, it is clear that even in this the Welsh Government and Plaid Cymru are failing, once again announcing a new scheme without having thought it through.

“It is totally shocking that six months into this scheme Gwynedd’s Council Leader remains unsure as to what the Welsh Government are even piloting.”

The Senedd Member’s most recent register of interests shows that she jointly owned seven properties, including a residential/holiday-let property in Menai Bridge with her daughter.