Introduction
On 12 April 2023 the Government published a consultation paper (the Consultation Paper) proposing reforms to how the planning system treats short term lets.
The Consultation Paper can be accessed at the website link below:
In this blog post, we provide a summary of how the planning system currently treats short term lets and how the Government’s proposed reforms under the Consultation Paper will impact on this.
Current Planning Treatment of Short Term Lets
Properties which are used for short terms lets are typically properties which fall within the existing Use Class C3 (Dwellinghouses) in Schedule 1 of the Town and Country Planning (Use Classes) Order 1987 (as amended). This Use Class makes no distinction between whether the dwellinghouse is used as a sole or main home, for personal or commercial use, or its tenure (rental or home ownership) and therefore gives rise to properties being used in a variety of ways.
Section 55 of the Town and Country Planning Act 1990 provides that planning permission is required for development which includes a material change of use, and it is a matter of fact and degree as to whether there is such a material change of use. In circumstances where properties are let out as a series of short term lets, over all the holiday periods or for several weekends, then the current position is that planning permission will be required in respect of any such cases where it is established that there has been a material change of use.
For properties in London, it is also necessary to have regard to the provisions of the Greater London (General Powers) Act 1973 (as amended by the Deregulation Act 2015), which provide that households may let out their home for up to 90 nights in a calendar year for temporary sleeping accommodation. Letting for more than 90 nights constitutes a material change of use for which planning permission is required.
Planning Reforms to Short Term Lets under the Consultation Paper
The Government states that the purpose of its reforms proposed under the Consultation Paper are “To address concerns in certain areas about the increase in the numbers of short term lets and the impact this can have on the sustainability of communities and the availability and affordability of homes for local people”.
The Consultation Paper proposes the following specific reforms in relation to short term lets and how they are treated under the planning system:
- The introduction of a new use class for short term lets to be known as “Use Class C5 (Short Term Let)”. This would be defined as “Use of a dwellinghouse that is not a sole or main residence for temporary sleeping accommodation for the purpose of holiday, leisure, recreation, business or other travel”.
- The introduction of new permitted development rights for the change of use from a Dwellinghouse (Use Class C3) to a Short Term Let (Use Class C5) and vice versa to provide flexibility where short term lets are not a local issue, and areas would only see a change where these rights have been removed by making an Article 4 direction.
- Providing a degree of flexibility for Use Class C3 Dwellinghouses to be let out for a number of nights a calendar year (whether to be 30,60 or 90 nights) in situations such as where the homeowner is themselves on holiday, or to benefit from where sporting or other events are held locally, or where the owner works away, while retaining its use as a main or sole dwellinghouse. Planning permission will continue to be required where a C3 Dwellinghouse is let out for longer than this number of nights in a calendar year where there is a material change of use. This flexibility could be provided by either amending Use Class C3 or by introducing an additional permitted development right.
- The introduction of a planning application fee for the development of new build short term lets.
Our Comments
In our experience as planning lawyers encountering properties used for short term lets there are some areas in England where such use of properties is welcomed whether this be to attract tourism or additional economic revenue into an area. However, in other areas short term lets prove to be a controversial issue in a lot of cases resulting in planning enforcement action being taken by the local planning authority. The current treatment of this issue under the planning system also makes it easy to become subsumed by a consideration of whether a material change of use has occurred requiring planning permission which can be a grey area to consider.
We therefore see significant benefits in the introduction of a new use class providing specifically for short term lets to provide greater certainty and also in the introduction of permitted development rights and additional flexibility for owners of dwellinghouses to provide their properties for short term lets which is not currently available under the existing planning system.
Note: all comments and views expressed in this blog are merely opinions and provided for information purposes only and do not constitute legal advice which can be relied upon. Should you require legal advice on a matter then please contact us
