MPs debated the regulation of short-term lets (STL) and second homes in England on 23 October 2024, and Propertymark’s briefing pack was shared with those taking part to ensure they were equipped with key statistics and vital member insight. Whilst policymaking should recognise the economic benefits of the tourism sector, there is an urgent need to create and protect a healthy and balanced property ecosystem as the UK tackles the housing and cost-of-living crises.

On 30 August 2024, the Scottish Government published a report outlining the progress of its short-term lets (STL) licensing scheme since its implementation in October 2022. Propertymark supports the introduction of STL regulation with the aim of bringing them in line with standards in the private rented sector, and we are encouraged by evidence suggesting the safety and quality of properties is beginning to improve.

HMRC is abolishing tax breaks for furnished holiday lets (FHLs) to take effect from April 2025, bringing in an extra £35 million to the exchequer in the first year. Propertymark has long called for parity between short-term and residential letting, and we welcome this move towards greater balance in the market.

The implementation of the new rules will mean property owners in the designated area must gain planning permission before changing the use of a main home into a second home or short-term holiday accommodation. Gwynedd Council will bring the Direction into effect from 1 September 2024.

Rt Hon Vaughan Gething, MS, has set out his priorities for the rest of this Senedd term, with building safety, homelessness, visitor accommodation, and planning all forming part of the programme. Radical and transformative change which matters most in people’s lives is what the Welsh Government will be concentrating on, and the First Minister is looking forward to a renewed, genuine partnership with the new UK Government to unlock opportunities across Wales.

Following the introduction of a licensing scheme in October 2022, the Scottish Government has been monitoring the impact of the legislation on consumers and the sector. Engagement with accommodation operators has resulted in improvements which allow the transfer of licences, more exemptions, and provisional licences for new properties. MSPs approved these measures on 26 June 2024.

The Chancellor of the Exchequer delivered his Spring Budget on 6 March 2024, likely to be the last before a General Election. Whilst a cut in Capital Gains Tax on property transactions will be welcomed, the sector will be disappointed that key measures, such as stamp duty breaks for last time buyers, increasing mortgage availability and a suspension of the 3% stamp duty land tax premium on buy-to-let purchases have been overlooked.

A mandatory national register and a requirement for planning permission will give local authorities in England the ability to measure the impact of holiday lets in their area and to restrict the proliferation of new lets to protect access to permanent housing for local people.

Plans for statutory registration and licensing for all visitor accommodation in Wales have been announced with legislation expected to be introduced before the end of the year to address the negative impact second homes and short-term holiday lets have on the availability and affordability of housing for local people.

Responding to the Department for Culture, Media and Sport (DCMS) consultation on the registration options for a short-term lets (STLs) licensing scheme in England, Propertymark stated that any scheme should not be compulsory for local authorities if they can prove they are having no impact on private rented sector supply in their area.

The Scottish Government want to understand how they can help councils make the best use of existing housing in their area, including managing the numbers of short-term lets, and second and long-term empty homes, where these are causing local housing issues.

A Department for Culture, Media & Sport consultation has been launched looking at three high-level possible approaches to a registration scheme with detailed questions about the design.

Pressing housing questions were put to the Department of Levelling Up, Housing and Communities in an oral session in the House of Commons on Monday 20 February 2023, with the Secretary of State, Michael Gove giving some reassurance to landlords and tenants, however, the long-promised Renters’ Reform Bill is still awaited.

Recognising the fact that some members in Wales operate for landlords of short-term holiday lets, Propertymark has responded to the Welsh Government’s consultation to establish a statutory licensing scheme for all visitor accommodation in Wales.

The Scottish Government has announced more time for hosts of short-term lets to apply for a licence. The deadline has now been postponed for six months from the original deadline of 31 March 2023 to 1 October 2023.

If the main driver of the proposals from the Welsh Government is to increase housing options for local people, they need to support landlords and increase housing supply where tourism is in high demand, including taxation incentives, boosting local authorities’ levels of Discretionary Housing Payments and improving positive communication with landlords.