As Britain’s housing crisis deepens, a group of MPs is pushing for tighter regulations on Airbnb-style holiday lets in Cornwall. They argue that the unchecked rise in short-term rentals is hollowing out local communities and pushing residents out of their own towns. In a powerful message to Westminster, they demand that second homeowners be required to obtain planning permission before converting properties into holiday accommodation.

Cornwall, with its picturesque villages and sought-after coastal views, has long been a favourite for holidaymakers and second-home buyers. However, this popularity comes at a significant cost to the locals. Property prices have surged, and many residents now find it nearly impossible to afford homes in their hometowns. Entire neighbourhoods are being transformed into holiday lets, creating what critics describe as “ghost towns” in the winter months.

According to the Daily Mail, MPs on the Levelling Up, Housing and Communities Committee are urging ministers to introduce a new Planning Use Class law. This would mean that homeowners must get planning permission to change their property’s purpose to short-term letting, with local councils granted more authority to manage this trend.

While platforms like Airbnb provide substantial income opportunities for hosts and hosts can benefit significantly from the popularity of tourism, they can also disrupt housing availability and affordability in tourist hotspots. This issue highlighted in Cornwall is not unique; cities across the UK, from London to Bath, are experiencing growing challenges related to short-term rentals.

Short-term lets can benefit local economies through increased tourism spend, but when left unregulated, they can decimate long-term rental markets and inflate housing prices. In Cornwall alone, it’s estimated that hundreds of homes lie unused for much of the year, serving only as holiday accommodation. This deprives local families and essential workers of accessible housing options.

The proposed “Airbnb Bill” would effectively create a new use category in the planning system for short-term rentals. MPs argue this change is essential to prevent the depletion of local housing stock. They suggest that without immediate action, entire communities could vanish as homes become inaccessible to local residents. The bill would also empower councils to restrict the number of short-term lets in their areas.

Levelling Up Secretary Michael Gove has signaled sympathy to these concerns and previously introduced a registration scheme allowing councils to keep track of short-term listings. However, critics argue this doesn’t go far enough. The new proposal offers stronger enforcement mechanisms and ensures that property owners can’t simply switch to holiday lets unchecked.

As the UK continues to recover from the financial impact of the COVID-19 pandemic, tourism has played a crucial role in revitalising the economy, particularly in rural and coastal regions. But this recovery must not come at the cost of community stability. As highlighted in our previous blog post on the 90-Day Airbnb Rule, setting clear boundaries is key to ensuring that tourism and local living can coexist.

It’s crucial for governments to identify a balanced path forward — one where locals can still live securely in their own neighborhoods while tourists continue to enjoy the beauty of Britain’s coastlines. As Airbnb UK’s hosting guidelines suggest, there is room for responsible short-term letting, but stricter regulation may help restore housing equilibrium in high-demand areas.

If passed, the legislation would significantly impact second homeowners who rely on rental income from holiday lets. Property investors in Cornwall and similar beauty spots may face new barriers to entry, higher costs, and planning application delays. However, for experienced hosts and property managers, this shift also presents an opportunity to adapt and legitimise their operations.

Professional Airbnb management services, such as those provided by Moa & Kin, can help hosts remain compliant and navigate new legislative frameworks. Leveraging experienced management solutions can simplify everything from licensing compliance to booking optimisation, reducing host risk and improving guest satisfaction.

With the housing issue escalating beyond Cornwall to cities and rural areas across the UK, the debate over short-term letting regulations is likely to become a national one. For instance, Airbnb management in London has already been held up as a model of progressive oversight with strict time-limits to safeguard against excessive short-term letting.

As MPs continue to debate the Airbnb bill, it remains to be seen whether other scenic hubs like the Lake District, Devon, or Cotswolds will follow Cornwall’s lead. The conversation about holiday lets and community resilience is far from over, and all stakeholders — hosts, holidaymakers, property managers, and locals — will need to play a role in its outcome.

Legislation aimed at controlling the spread of Airbnb holiday lets in Cornwall represents a crucial turning point in the UK’s battle against the housing crisis. While the outcome remains uncertain, what is clear is that communities can no longer afford unchecked short-term rental growth. With thoughtful planning, robust legislation, and professional management, a balanced path forward is possible.

Whether you’re a host, property investor, or simply someone looking for their next holiday rental, understanding the direction of these new housing policies is vital. For more insights into how to manage properties in this evolving landscape, check out our guide on how to manage Airbnb properties.