London Councils warn Gove that short-term lets policy could worsen housing crisis

According to London Councils, there are at least 43,000 short-term lets in the capital, equivalent to one in 85 London homes, and “a significant portion” of these would qualify for the new planning category.

Since 2015, planning permission has not been required for homeowners in London to let their property for fewer than 90 nights in a calendar year.

However, the councils said that short-term lets were “largely operated as commercial entities that rent out properties all-year round”. In addition, they estimated that “a large proportion – if not a majority” of short-term lets in central London were breaking this 90-day limit.

Enforcing these breaches was “extremely resource intensive” and there have been very few prosecutions, they added.

The “proliferation” of short-term lets in the capital has meant less housing for permanent residents and higher prices in London’s private rental sector, the councils said.

Boroughs also reported that short-term lets were sometimes associated with spikes in crime and anti-social behaviour.

The group welcomed other aspects of Mr Gove’s action on short-term lets, including a mandatory national register of properties and continued planning permission requirements for future short-term lets.

But it called for “strict planning application rules” to be maintained on all short-term lets and for local authorities to receive more resources for enforcement.

Darren Rodwell, executive member for regeneration, housing and planning at London Councils, said: “For too many years, the short-term lets market has been growing out of control.

“With housing and homelessness pressures in the capital worse than ever, boroughs are extremely concerned about losing permanent housing stock. The priority has to be ensuring homes are available for long-term residents.

“We welcome the government’s move to improve regulation of the sector, but the blanket reclassification of existing short-term lets into a new use class could strip the capital of thousands of homes.

“Boroughs are keen to work with ministers on developing these proposals further and ensuring London is better placed to tackle this challenge.”

A Department for Levelling Up, Housing and Communities spokesperson said: “It is for each council in London to enforce the existing legislation to ensure everyone follows the rules in order to provide the permanent homes Londoners need, and the register of short-term lets will help local authorities to apply and enforce the planning changes.

“We have announced that we will introduce a new short-term let use class and associated permitted development rights, with further information to be provided in due course.”

Inside Housing understands the government will respond to the letter in due course.