The rise of Airbnb lettings and second homes in popular coastal regions like Cornwall has ignited a political battle over housing in the UK. MPs are calling for a new planning requirement that would compel second homeowners to seek approval before converting their properties into short-term holiday lets. This move comes amidst growing concern about the bleak state of local housing markets in tourist-heavy areas.

In counties like Cornwall, picturesque towns such as St Ives, Padstow, and Fowey are flooded with second homes and Airbnb-style accommodation, pushing locals out of the property market. Analysis shows that more than 12,000 homes in Cornwall are being used as holiday rentals listed primarily on short-let platforms such as Airbnb. At the same time, 21,000 people are on the housing waiting list, and 741 families are currently being housed in temporary accommodation by the council.

This shift toward “Airbnbification” of the countryside has created an unsustainable imbalance, where entire communities are becoming seasonal destinations lacking full-time residents. Residents argue that the explosion of short-term lets has not only driven up house prices but also hollowed out local infrastructure from schools to shops.

In response to these problems, MPs led by former Conservative minister Sir Robert Syms brought a cross-party motion calling for a bill that would insert planning restrictions into the short-let economy. It would mean that homeowners looking to operate short-term lets would require change-of-use planning permission before listing their property on rental platforms.

The proposed bill aims to tackle the ease with which property investors are converting homes into lucrative holiday lets, outcompeting local families and key workers in need of stable housing. “We can’t have all second homes—we have to have primary homes,” said Derek Thomas, Conservative MP for St Ives.

The profitability of holiday rentals versus long-term lets is a primary driver. In areas like Cornwall, properties can earn upwards of £1,000 a week in peak season, making short lets considerably more lucrative. While tourism is a key revenue stream for the region, the year-round liveability of towns and villages has become increasingly compromised.

The Government has announced plans for a mandatory national register of short-term holiday lets, with the bill expected to be discussed after the summer recess. Wales has already implemented a version of this, requiring homeowners to obtain planning permission for short-term rentals in some regions.

If implemented, the bill would add a significant regulatory hurdle for landlords and property investors in holiday hotspots. Property owners may need to comply with planning conditions or face refusing their ability to rent short-term.

Moreover, this movement may set a precedent that spreads to other UK cities facing similar issues, such as Bath and Oxford. Property managers and hosts in these areas may need to start considering how local planning policies affect their short-let strategies.

For those who already manage Airbnb properties or are considering investing in them, it is essential to stay compliant. You may want to prepare your property for regulatory scrutiny by ensuring safety standards are met, community impact is minimised, and that the property brings long-term value to the local area. Consider consulting a professional Airbnb management company to help navigate these changes and optimise your listing in compliance with future regulations.

A practical guide like Top 10 Tips for Maintaining Your Airbnb Property can help you operate more sustainably and maximise occupancy year-round, avoiding pitfalls that might lead to planning disputes or complaints.

With the Government’s planning reform consultation already concluded in June 2023, the legislative groundwork is being laid. There is growing political consensus that unchecked short-term letting needs reform, especially in light of public backlash and the broader housing crisis. Experts suggest a shift toward more responsible hosting and perhaps a greater focus on balanced tourism models will be needed to ensure both economic benefits and community wellbeing are preserved.

For future UK hosts or current landlords, it may become increasingly important to understand both national and local regulations as policy continues to evolve. You can read more about what hosts need to know about short lets in our article: The 90-Day Airbnb Rule.

With tourism playing a pivotal role in local economies, short-term rentals are here to stay—but perhaps in a more regulated form. The Airbnb bill proposed by MPs represents an opportunity to strike that much-needed balance between vibrant tourism and sustainable local housing. Landlords and investors need to adapt quickly if they hope to continue thriving in a shifting regulatory landscape.

To stay on top of changing regulations and make the most of your rental investment, consult our Airbnb property management services page and explore ways to operate efficiently while supporting local communities.