The picturesque coastal towns of Cornwall have long been a magnet for holidaymakers seeking sun, sea, and the charm of West Country living. Yet, behind the idyllic façade, a surge in second-home purchases and short-term lets on platforms like Airbnb is causing a housing crisis for locals. MPs are now demanding immediate legislative action to require planning permissions for homeowners turning their properties into holiday lets — a move that could dramatically shift the property rental landscape in tourist hotspots like Cornwall.

Cornwall’s property market has seen a boom driven largely by affluent investors purchasing second homes and converting them into lucrative Airbnb rentals. According to local councils, this influx has hollowed out communities, pricing out local residents and making it nearly impossible for young families and essential workers to live where they work. In peak holiday seasons, towns like St Ives and Padstow can become ghost towns in the off-season, with rows of empty properties that serve only as seasonal assets.

Tim Farron, Liberal Democrat spokesman for housing, has joined a chorus of MPs urging for swift legislation that would empower local authorities to grant or deny planning permission before a property is switched from long-term to short-term letting. Currently, there are few restrictions, and many homeowners bypass regulations by marketing their homes on Airbnb without council oversight.

Farron, along with other MPs such as Steve Double (Conservative, St Austell & Newquay) and Luke Pollard (Labour, Plymouth Sutton and Devonport), argues that the existing imbalance is driving a long-term social and economic problem. The proposed “Airbnb Bill” would help ensure that communities retain their vibrancy and viability year-round, rather than solely catering to the seasonal tourism economy.

In an official address, Farron stated: “It’s not anti-tourist, it’s pro-local. We love visitors, but we also love our towns and villages being actual communities. That means homes being lived in all year round.” His sentiments were echoed across party lines, reflecting rare political unity on a critical local issue.

If passed, the proposed legislation would significantly alter how property owners approach holiday rentals. It’s a particularly important development for those involved in Airbnb property management and landlords operating in Cornwall and similar tourist-tourist-heavy regions. Owners may need to jump through more hoops, such as applying for change-of-use planning permission before listing properties on short-let platforms.

While some investors may view this as a deterrent, others see it as a levelling mechanism that could create more sustainable tourism practices. In towns where this type of regulation has already been trialled — such as in some parts of London — it has led to a more structured and manageable rental system. For more strategies on operating within legal frameworks, visit our guide on navigating Airbnb regulations.

This legislative push is not simply about curbing profit or discouraging tourism — it’s about giving power back to local communities. Cornwall’s acute housing shortage has been highlighted in multiple studies, showing that job vacancies in critical sectors like healthcare and hospitality remain unfilled due to unaffordable or unavailable housing options for potential employees.

In practice, the proposed bill would insert local accountability into short-term letting decisions. This isn’t unique to Cornwall; similar policies are being explored or implemented in hotspots like Edinburgh and Barcelona. According to BBC News, over 50,000 short-term lets could fall under new regulations if nationwide policy saw light.

Industry experts suggest that rather than deterring Airbnb activity altogether, regulations like these could raise the bar for accountability and quality. Property owners and managers will be incentivised to maintain higher standards and contribute to the local economy instead of merely extracting from it. For practical tips on how to maintain your Airbnb the right way, check out our blog on maintaining your property.

For those operating across multiple locations and looking to stay compliant, services offering Airbnb management in London and other UK cities are evolving to provide legal advice and tailored solutions to meet the changing legislative landscape.

With Cornwall as a litmus test, this proposed legislation could be the beginning of a broader UK-wide shift in how Airbnb and short-term lets are regulated. The aim is not to kill off tourism, but to balance short-term financial gain with long-term community stability. For holidaymakers, this could also result in better, more consistent experiences in areas previously marked by inconsistent service and availability.

As more cities and towns consider similar frameworks, staying ahead of the curve with professional Airbnb management and transparent operations will be key to success. Learn how to adapt your property management strategy by reviewing our comprehensive guide on managing Airbnb properties effectively.