A proposed new Bill in Parliament may soon transform the holiday rental market in Cornwall. A group of MPs is demanding urgent reform in housing regulation that would require second-homeowners to seek planning permission before converting their properties into short-term rentals like those listed on platforms such as Airbnb. Advocates of the “Second Homes and Holiday Lets Bill” claim the measure is necessary to tackle a deepening housing crisis affecting Cornish residents.

Over the past few years, Cornwall—a county famed for its breathtaking beaches and picturesque towns—has become a hotspot for holidaymakers and digital nomads seeking temporary stays. However, this boom in short-term rentals has created a significant supply-demand imbalance. As more homes are transitioned into lucrative holiday lets, local residents struggle to find affordable, long-term housing options.

According to Conservative MP Simon Fell, who is spearheading the new Bill, “There are housing crises in many parts of the country, but in places like Cornwall, they are particularly acute.” He added that “the current unregulated market is pricing out local families and young professionals, impacting communities and essential services.”

If enacted, the legislation would designate a “planning use class” specifically for short-term, holiday-let properties. This means second homeowners would be obligated to apply for planning permission to change their property’s use, bringing better oversight and regulation into the currently unchecked market. Local councils would gain the authority to limit approvals in areas already overwhelmed by tourism-driven housing pressures.

This move follows similar initiatives in other tourist-heavy regions such as the Lake District and Devon, where public concern over a lack of affordable housing has also prompted regulatory responses.

Unsurprisingly, the proposed legislation has sparked debate among property owners and investors who rely on Airbnb income. Many argue that short-term lets play a vital role in the local economy, supporting tourism and small businesses. They also point out that renting out a second home helps offset mortgage and maintenance costs, especially during times of economic uncertainty.

However, advocates of the Bill stress that the issue isn’t with Airbnb rentals per se, but with their concentration in small, rural communities where housing is already scarce. Without regulation, entire neighborhoods risk becoming hollowed out, occupied only seasonally and lacking a stable, year-round population.

This legislative proposal in Cornwall isn’t just a local issue—it may indicate a turning tide for the short-term rental market across the UK. Urban centres like London, Bristol, and Oxford are already exploring enhanced management measures to ensure community sustainability. Our team at Moa & Kin is actively engaged in Airbnb management in Bristol and other cities facing similar challenges, where expert oversight ensures compliance, guest satisfaction, and community support.

For homeowners navigating these regulatory changes, it’s more crucial than ever to understand how to manage Airbnb properties effectively, particularly as public scrutiny and regulatory frameworks evolve. Strategies like regular property maintenance, transparent communication with neighbours, and adhering to local regulation can go a long way in ensuring that your Airbnb investment remains viable—and welcomed—within the community.

While the Bill is still in its early stages, it’s advisable for property owners to stay informed and start future-proofing their rental operations. This includes:

• Checking local council websites for any planning requirements or proposed zoning laws.
• Consulting with Airbnb management professionals to ensure legal compliance and sustainable hosting practices.
• Reading best practice guides like our Top 10 Tips for Maintaining Your Airbnb Property in Bath.
• Monitoring news from trusted sources, including government and housing policy websites.

Many experts believe that more UK regions will follow Cornwall’s lead. As rental markets tighten and community cohesion becomes increasingly important, sustainable and ethical hosting will be the cornerstone of successful Airbnb operations.

Cornwall’s proposed Airbnb legislation is not about ending holiday rentals—it’s about restoring balance. While tourism is essential to the local economy, so too is the year-round presence of teachers, nurses, grocery store workers, and families who form the backbone of the Cornish community. Introducing structured planning permission for holiday lets could be the first step toward ensuring both can coexist.

For landlords and second homeowners, this moment presents a critical opportunity to reassess strategies, ensure compliance, and consider how their business may positively or negatively affect the broader community.

As this story develops, we’ll continue to cover updates, regulatory shifts, and strategic advice for existing and prospective Airbnb hosts. Stay tuned and make sure your holiday rental decisions align with a sustainable future.