In a significant move that could reshape the UK short-term letting landscape, MPs are urging the government to introduce new legislation aimed at curbing the rapid expansion of second homes and holiday lets, particularly in highly sought-after locations such as Cornwall. The proposed bill would require homeowners to obtain planning permission before converting residences into lucrative Airbnb-style holiday rentals.

What’s Behind the Proposal?

The push for legislative change comes amid growing concern over the negative impact of holiday lets on local housing markets and communities. In popular areas like St Ives and Fowey, a surge in short-term rental properties has been correlated with a sharp rise in house prices, making it increasingly difficult for local residents to afford or even find homes. For example, Cornwall alone has over 13,500 holiday lets and more than 5,400 second homes compared to fewer than 1,000 properties available for long-term rent on Rightmove.

The influx of tourists is credited with helping local economies, but this often comes at the cost of community cohesion and year-round housing supply. Many towns have become ‘ghost villages’ in the off-season, with essential services such as schools, shops, and bus routes left struggling during the quieter months.

Key Provisions of the Airbnb Bill

The proposed “Airbnb bill” would mandate property owners to apply for planning permission before renting out homes as short-term lets. This would give local councils the authority to monitor and control the number of short-term rental properties within their jurisdiction, safeguarding long-term housing supply.

Levelling Up Secretary Michael Gove is reportedly considering measures that would align with these demands. A proposed new planning use class for short-term lets could soon be introduced, alongside a national registration scheme backed by the Department for Culture, Media and Sport.

A Balancing Act for Tourism and Local Communities

Cornwall has long been a poster child for the economic potential of tourism, but the current model appears unsustainable. According to Daily Mail reports, MPs emphasise that holiday lets should not continue growing at the expense of locals who live and work in the region all year round.

Local businesses are affected too. With fewer residents, staffing local stores or running hospitality services becomes increasingly challenging. Shortages in housing for workers heightens the pressure, making it harder for communities to thrive beyond the tourist season.

What This Means for Airbnb Hosts and Property Investors

Airbnb hosts may soon face extra regulatory hurdles. Depending on the details of the bill, property owners could need to transition their houses back into long-term rentals or face potential fines.

This shift could mirror changes already seen in cities like Amsterdam, Barcelona, and Paris, where short-term rentals have been heavily regulated to mitigate housing shortages. Those managing Airbnb properties in the UK should begin preparing for similar scenarios.

If you’re currently managing or considering entering the short-term rental market, our guide on how to manage Airbnb properties offers invaluable insights into best practices and staying compliant with evolving regulations.

Cornwall’s Resident Voices

Feedback from locals has been consistent—many feel excluded from the housing conversation. The cost of living and home ownership has skyrocketed, and yet their towns are swamped with holidaymakers during the summer months, while lying eerily quiet come winter.

MPs hope that legislation will strike a better equilibrium between economic prosperity through tourism and basic community needs such as affordable housing and infrastructure support. They also stress the importance of ensuring that “local people can continue to live and work in the places they grew up.”

The Bigger Picture—Nationwide Concern

Although much of the recent focus has centred around Cornwall, other UK cities and regions are experiencing similar tensions. Our article on Airbnb management in London explores how urban centres are adapting to the boom in short-term lets and taking steps to create more sustainable property ecosystems.

With the potential introduction of a national landlord register and mandatory planning permissions, many in the property sector are watching the developments closely. Property investors and Airbnb hosts must stay informed and adaptive. Our team at Moa & Kin offers custom Airbnb management services in a number of UK cities to help you navigate this shifting landscape successfully.

What’s Next?

The bill is not yet law, but the pressure on the government is mounting. With cross-party support and increasing grassroots campaigns from strained communities, there’s a strong chance that changes are coming within the next year.

For property investors and seasoned hosts, preparation now could avoid complications later. Staying ahead of legislation, maintaining excellent tenant relationships, and balancing profitability with ethical letting practices will be more important than ever.

Final Thoughts

The proposed Airbnb bill seeks to restore balance in regions overwhelmed by short-term rentals. While it introduces uncertainty for some property owners, it also creates an opportunity to redefine responsible hosting practices in the UK. Whether you’re in major cities like Bath or Bristol, or eyeing opportunities in tourist-heavy towns, it’s crucial to stay agile and informed.

Ready to elevate your short-term let? Check out our property maintenance tips for Airbnb to ensure your rental remains competitive and compliant in today’s challenging market.