Short-term lets in England, Scotland, and Wales are being faced with an assortment of new regulations, from a tourist accommodation register in England, to new licensing schemes in Scotland and Wales. Whilst not immediately obvious to the casual observer, the reason that short term accommodation is being targeted is a simple one – overall lack of housing supply. Also, it is not a problem restricted to the UK. Across the world – particularly in developed countries and in urban areas – national and local governments are targeting rental markets with a view to enhancing or maintaining supply – with wider ranging, not always positive results. Yet, none have gone as far as in New York’s recent intervention on short-term lets.
In New York City the host needs to actually be living in the home and present for lets of under 30 days to be legal. This means that for a typical holiday or business stay, it is no longer possible to rent an entire apartment. The recently introduced rules also stop hosts renting to more than two guests at a time and hosts also have to register to legally let out their properties at all.
The aim of these rules is to address New York’s housing supply which is driving up rents, and also address concerns around the anti-social behaviour of those that rent short-term accommodation.
It has been suggested that these restrictions will deter tourists from visiting the city, with fewer accommodation options available to them. In addition, locals that rely on income from tourism and accommodation could potentially see a negative impact.
So, what has been the immediate impact?
In August 2023 – just prior to the new rules being introduced – Airbnb recorded a 70% drop in the number of short-term rentals listed, from 22,000 to under 7,000. In parallel to this, the number of long-term listings – those over 30days – jumped by nearly 200%, from 11,000 to just under 33,000.
This suggests that many short-term listings simply switched to advertising for stays of 30 days or more, to escape the new rules rather than being made available to longer term renters.
So, what’s been going on in the UK?
Currently UK governments are not planning such extreme changes. However, there are plans to regulate the sector, for the same reasons – poor housing supply and anti-social behaviour. Listed below are some proposed and adopted changes:
- Scotland: licensing of short term let hosts.
- Wales: is considering host licensing.
- England: is planning a tourist accommodation registration scheme.
- Various regions: possible planning restrictions on short terms lets in areas with poor housing supply.
- Owners of short term lets and guests could face tougher penalties for anti-social behaviour.
The results of the clamp down in New York will be closely monitored by UK governments and by others around the world, as they assess the impact of the new rules on supply. If the global trend of a shift to long-term lets continues, this may spur governments – including the UK – to introduce similar measure to those in New York at some point in the future.
Conclusion: In the ever-evolving landscape of short-term letting regulations, the global trends and the New York precedent indicate potential shifts towards more stringent measures. While the UK is not currently pursuing extreme changes, the ongoing monitoring of outcomes globally suggests that adaptation may be on the horizon. For Kent landlords, staying informed about the evolving regulatory landscape is essential to navigate potential changes and make informed decisions about their properties.
Stay ahead of regulatory changes and ensure the success of your property investments. Learn more about how The Property Lifeboat can assist you in navigating the evolving landscape of short-term letting regulations. Explore our services and get in touch for personalised information tailored to your specific needs. Secure your property’s future in a changing market – contact us today on 01233 800999 or admin@thepropertylifeboat.co.uk
