Will homeowners get more flexibility to short term let their properties?

Published: 13 April 2023

Written by Kenya Sharland

Kenya Sharland | Associate Kenya has a background in private practice. She has particular experience in navigating complex, small-scale development schemes including rural development, urban redevelopment schemes, householder appeals and enforcement cases. She has also been involved in the promotion of sites via the Development Plan process.

The Government are on a roll, with yet another planning legislation consultation. This time it is on the potential for the introduction of a use class for short term lets and associated permitted development rights.

Views are being sought on whether to give homeowners more flexibility to short term let their properties. The first step of this would be introducing a new “C5 Short Term Let” use class. It is also proposed to follow London’s lead by setting out clarity on allowing Class C3 dwellinghouses to be used for a certain number of days a year as short term lets without a material change of use taking place. They state that they “are open as to whether this limit should be 30, 60, or 90 nights in a calendar year”.

At first reading I thought that this was intended to be a well needed way to tighten up the current grey area over Airbnbs (outside of London). Particularly as the consultation acknowledges that, at present, the planning system allows for local determination as to whether a material change of use has taken place, or not, based on “fact and degree” and the merits of individual cases.

However, it actually appears to propose even less control, albeit potentially with greater transparency, over when dwellings are used as short term lets. This is because it is intended to also introduce a new national permitted development right to allow the change of use from a C3 dwellinghouse to a C5 short term let (and vice versa).

The rights would not be subject to any limitations or conditions. i.e. no matters for prior approval, no size limits or exclusions, and the rights would apply to listed buildings, in National Parks and the AONB. The only restriction being proposed is that the Local Planning Authority should be notified of a change between the two uses. The onerous would then be on Local Authorities to introduce Article 4 Directions “where there is evidence of a local issue” which should apply only to the “smallest geographical area possible”.

The proposals do suggest that such permitted development rights could be removed by condition on new development. However, it is unclear whether this should only be used where there is evidence of a local issue which requires control, i.e. where, under the six tests, it is necessary and reasonable in all other respects to remove a national permitted development right.

Overall, coupled with the proposal in the Levelling up and Regeneration Bill to introduce a register of short term lets, this seems to me to simply be a way to ensure all short terms lets are paying correct business rates and meeting other financial requirements. This will not help address the housing crisis and frankly makes it open season to use any dwelling as a short term let as long as the correct costs are paid. I shudder to think what implications this could have on the private rented sector which in many areas already suffers the consequences from the greater values which can be achieved by using premises as Airbnbs.

To me, it would be much more sensible to introduce the new use Class C5 and provide the clarity on the number of days a C3 dwelling can be used as a short term let and then require a formal planning application for proposed changes of use from C3 to C5. This would create/retain much needed protection for dwellinghouses. If so inclined, the Government could write into the NPPF a presumption in favour of allowing flexibility for dwellings to be used as short term lets and leave Local Planning Authorities to write justified local policies within Development Plans which control or limit support for the same, as appropriate.

Once again it seems profit is being prioritised over communities?

You can respond to the consultation here