New controls on short-term and holiday housing lets introduced this summer could worsen the capital’s housing crisis, London Councils has said.
The changes mean people may need to seek permission from the council to turn their home into a short-term let, of which there are at least 43,000 in the capital - equivalent to one in 85 London homes - according to London Councils’ estimates.
It said that a significant portion of these would qualify for the new planning category, or ‘use class’, for properties already used as short-term let.
Boroughs fear that automatically transferring short-term lets into this new planning category will lead to the loss of thousands of homes from London’s permanent housing stock.
London Councils, which represents the capital’s 32 borough councils and the City of London, argues that reclassifying existing short-term lets without required planning permission “undermines efforts to preserve homes for residents amid worsening housing pressures and homelessness rates”.
The proliferation of short-term lets means there would be less housing available for individuals seeking permanent residency, and higher prices in London’s private residential sector, the cross-party group also warned.
In its letter to housing secretary Michael Gove, London Councils addressed these concerns,along with calls for a robust registration scheme, requiring hosts to register their short-term lets (with penalties for non-compliance).
The group is pushing for strict planning application rules to be maintained on all short-term lets.
The Department for Levelling Up, Housing and Communities has said it will reply to the letter in due course.Cllr Darren Rodwell, London Councils’ executive member for Regeneration, Housing & Planning, 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."
