Holiday and 2nd Home Registration Consultation

Published / Last Updated on 11/01/2022

The Government is to consult on the impact of rising holiday home, 2nd home and Airbnb type accommodation as the impact of rising prices in rural and coastal areas impacts local affordability and rental availability.

Minister of State for the Department for Levelling Up, Housing and Communities, Christopher Pincher confirmed the consultation in the House of Commons.

The consultation will explore the impact and lack of availability for local communities as well as considering making 2nd Homes and Holiday Lets a new ‘planning consent’ requirement.

In addition, the use of business rates and indeed small business rates relief meaning no taxes on furnished holiday lets will also be explored with the likely result being Council Tax rather than business rates applied to residential holiday lets as they already do for 2nd homes (not holiday lets).

Comment

We have long though that a home or 2nd home paying full council taxes is unfair when furnished holiday lets do not.  In addition, the new requirements for EPC grade C on rental properties may also be extended holiday lets.

This is a tough line to walk.  If a person works hard and is successful, they should be able to buy whatever assets they wish to without restriction but equally it is not palatable that ‘locals’ and younger ‘local’ or hospitality workers in tourist hotspots struggle to find a property to rent let alone get on the property ladder.

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