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UK: The UK government is considering giving local councils more power to manage short-term lets and second homes as it looks to improve housing availability in local communities.
Housing minister Matthew Pennycook confirmed the plans when replying to a written parliamentary question. He said the government is looking at ways to help councils deal with areas where large numbers of short-term lets and second homes are affecting the local housing market.
Matthew Pennycook said: “We are considering what additional powers we might give local authorities to enable them to respond to the pressures created by short-term lets and second homes.”
The government has already introduced measures aimed at second homes. Councils now have the power to impose a council tax premium of up to 100 per cent on second homes, and the rate of Stamp Duty Land Tax on second homes has been raised from 3 per cent to 5 per cent since October 2024.
The plans follow calls for stricter rules on short-term lets, including changes to data-management rules.
The government has also announced that it will be implementing a mandatory national registration system for short-term rentals. Hosts will be required to sign up under the scheme, place a unique reference number on the property’s online listing and attest to compliance with existing safety standards, such as fire, gas and electrical regulations.
Highlights:
- The UK government is considering giving local councils additional powers to manage the impact of short-term lets and second homes on local housing markets.
- Housing minister Matthew Pennycook said the government is reviewing further measures after introducing a 100 per cent council tax premium on second homes and higher Stamp Duty rates.
- Councils can now charge up to 100 per cent extra council tax on second homes, while Stamp Duty on additional residential properties increased from 3 per cent to 5 per cent.
- The government also plans to introduce a mandatory national registration scheme requiring short-term rental hosts to register properties and display a unique reference number on online listings.
- Under the proposed registration scheme, hosts will also need to confirm their properties comply with existing fire, gas and electrical safety regulations.
