What is this guide?

Many of our customers rent out their properties using short-term let agreements. DSA has created this guide, using a question-and-answer format, to supply you with all the information you require, as a landlord, to manage your property portfolio in adherence to the announcement of the new legislation. 

What is a ‘short-term let property’?

A short-term rental property is a dwelling that is provided by a host to a guest as accommodation in exchange for payment. 

What is the new compulsory registration scheme?

On 19th February 2024, the UK Government announced a new legal requirement for landlords renting out their property as short-term lets to apply to the local council for permission to do so.

The new legislation requires landlords to acquire permission from the local authority, registering their property under a new ‘use’ category. 

Following the registration of properties, a new, mandatory national register of short-term let properties will be made available to local authorities. 

The aim of the new legislation is to ensure that the UK reaps the benefits of the increasing visitor economy by ensuring visitor accommodation sustainability. This must be balanced with the protection of local communities by improving the availability of long-term housing.

Why the change?

Over the last 15 years, the property landscape has changed considerably, with many landlords choosing to attract the tourist market by letting out their residential property as guest accommodation.

The advance of digital platforms, such as AirBnB, has enabled more landlords to enter the market this way and offer their properties to traveling individuals looking for a short term stay. 

The government points to three key reasons as to why their needs to be more restrictions around the saturation of short-term lettings in local areas:

1. Loss of community:

In areas with a higher density of short-term let properties, the ‘hollowing out’ of communities is evident where certain areas have become holiday  hotspots, reducing the number of long-term residents. 2

2. Increased housing prices:

In areas with more short-term let properties, this has caused an impact on the availability and affordability of rental properties in the local area, due to landlords prioritising the more profitable short-term let market than longer-term. Equally, an increase in house prices is evident due to reduced supply and increased demand.

3. Lack of regulation:

Unlike the traditional guest accommodation market, including B&Bs and hotels, individual properties are much more difficult to regulate in the protection of the health and safety of visitors. 

How will this affect me as a Landlord?

It is widely recognised that the availability of short-term let properties does bring economic value in individual income for landlords, increased tourism, wider diversity of accommodation on offer and increased visitor spend within the local area. It is important that the registration requirements do not detract from this. 

If you currently have your property listed on short-term letting platforms such as AirBnB, you will benefit from the clearer rules now being put in place to support the regulation of your accommodation, providing guests with a reliable and improved experience. 

The local authority will also now be able to control and manage the balance between needs of short-term and longer-term accommodation by accessing the information and data to monitor the health of the community. They will be able to grow the local area by providing facilities that match the needs of those residing in the area, both short and long-term. 

When will the new Legislation be implemented?

The legislation changes will be introduced in Summer 2024. We will keep you updated via our Architecture Insights blog on the progress and timeline of the new legislation’s implementation. 

To read more about the Government consultation on the registration scheme for short-term lets, visit the Government website article.