There’s growing anger over restrictions on private homeowners using their properties via Airbnb and other short let platforms.

Earlier this week Housing Secretary Michael Gove announced that planning permission will be required for future short-term lets; that there will be a mandatory national register; and that existing homeowners can continue to let out their own main or sole home for only 90 nights a year – anymore and they will require planning consent.

The rules apply only to the short lets sector involving homeowners and small-scale landlords – not traditional bed and breakfasts or hotels, for example.

Matthew Lesh, Director of Public Policy and Communications at the free market think tank, the Institute of Economic Affairs, says: “The government is scapegoating holiday lets for the housing crisis. Britain’s restrictive planning system, by not allowing enough homes to be built, is the real reason people cannot afford to live in their own communities.

“A national registration scheme and requiring permission to use one’s own property for holiday lets will not fix anything. But it will add to Britain’s red tape nightmare and could end up doing more damage to local communities by hurting their tourism economy.”

Ben Edgar Spier, Head of Regulation and Policy at Sykes Holiday Cottages, welcomes part of the proposals but says such measures do not solve the housing crisis.

He comments: “The announcement of the registration scheme for England’s short-term letting industry has the intention to track the size and impact of the sector and ensure short-term lets are safe, something which Sykes fully supports.

“Short-term lets are the economic lifeblood of many parts of the UK and a register to provide accurate data was clearly needed before any further regulation risks unforeseen impacts on communities and visitors alike.

“We welcome the registration scheme being national, mandatory, and presumably online. Our hope and expectation is that it will give our market some much needed clarity and drive compliance across the country.

“On the target to deliver one million homes this Parliament, we note that there are far more underused and vacant buildings in existence as well as land with planning permission, all of which contribute far less if anything to local economies, compared with holiday lets. We would urge the Government to consider measures to incentivise the bringing of those buildings and land into use to boost housing supply.”

The Tourism Alliance, a trade association representing the sector, says it backs a mandatory registration scheme – but that’s all.

The association’s executive director, Richard Toomer, comments: “While we understand the government’s desire to tackle the lack of housing in some areas, it is vital that we don’t harm the visitor economy in destinations which are reliant on a good supply of tourism accommodation.

“We continue to believe that the registration scheme must be implemented first, because it’s only by using the data that this scheme will supply that local authorities can know if and where there are problems, and have solid information on which to base their planning decisions.”

Graham Norwood. This article appeared originally here

Short-Term vs Long-Term Rentals: Which One Wins?

Thinking about property investment but torn between long-term and short-term rentals? You’re not alone. This choice can make a big difference to your income, your stress levels, and how hands-on you need to be.

The UK housing market has shifted in recent years. Platforms like Airbnb and Vrbo have made short-term lets more accessible than ever, while long-term rentals continue to offer reliable income. So, why might short-term lets be the smarter move?

Set Your Sights: What Do You Want from Your Investment?

If you’re chasing higher returns and don’t mind a bit of involvement, short-term rentals can be very appealing. And you don’t have to manage every detail yourself — letting agents can handle bookings, guest communications, and maintenance for a set fee.

Bigger Returns, Smarter Strategy

Short-term lets often generate more rental income than traditional long-term rentals, especially in high-demand areas. Seasonality can be managed if your agent has access to corporate clients or relocation bookings — keeping your properties full all year.

Riding the Market Waves

Short-term rentals are sensitive to tourism trends and economic changes, but compared to long-term lets, they usually face fewer legal and regulatory headaches. Keep an eye on licensing rules, though — government regulations could tighten in the future.

Hands-On Doesn’t Mean Hard Work

Managing a short-term rental means looking after cleaning, guest services, and upkeep. But professional management companies can handle multiple properties efficiently, so you can scale without taking on all the day-to-day work yourself.

Location Isn’t Everything

Holiday hotspots still perform well, but corporate stays, relocations, and contractor markets mean you can achieve strong returns even outside tourist-heavy areas. Flexibility is key.

Know the Rules

Short-term rentals have their own tax rules and licensing requirements. Right now, they’re generally easier to navigate than long-term rentals — but stay alert for changes.

Grow Fast, Manage Smart

Short-term lets allow for rapid portfolio growth, but more properties mean more management. The secret? A reliable letting agent or management company so you can expand without sacrificing profits.

Mortgages: What to Expect

Buy-to-let mortgage rates for long-term rentals start around 4.2% (up to 80% LTV), while short-term rental deals begin near 6.5% (up to 75% LTV). A slightly higher rate, but with potentially bigger returns, it’s an investment that can pay off.

Bottom Line: Short-Term Lets Are Changing the Game

Property investment has always been a route to passive income, but short-term rentals are shaking things up. Higher returns, flexibility, and access to diverse guest markets make them an attractive choice. With professional management in place, even distant or multiple-property investors can enjoy hands-off profits.

If you want to make your property work harder for you, short-term lets are worth a serious look.

The owner of a famous house with a 25ft shark sticking out of the roof has been told he can no longer rent it out on Airbnb.

The quirky property, known as the Headington Shark House, has been available for short term let on the site for the last five years in Oxford, with visitors flocking to see the shark sculpture crashing through the roof. It’s also a hit with guests and can sleep up to 10 people, with prices for a two-night stay reaching as much as £2k.

However, owner Magnus Hanson-Heine has now been ordered to remove it from the site because he doesn’t have the right planning permission.

The issue arises out of Oxford City Council requiring private residences to get planning permission to become a short term rental.

The short-term rental market came under the Governments spotlight – sparking a review which included a consultation with local authorities that closed in June last year.  Scotland has now introduced new licensing rules which are being challenged in the courts.

In England the rules are currently piecemeal depending on local authorities to decide if they wish to bring in requirements for landlords to get planning permission.

The reason for this push to licence is that Airbnb type lettings are being blamed for shortages in the traditional rental market.

This is at best a simplistic view of a very complicated issue where the building and provision of affordable housing in the UK has been an issue for decades. Thinking that regulating less than 300,000 homes across England will improve the situation is not addressing the real problem especially when you consider that there are 261,189 long term empty properties in England alone.

According to one estimate commissioned by the National Housing Federation (NHF) and Crisis from Heriot-Watt University, around 340,000 new homes need to be supplied in England each year, of which 145,000 should be affordable. In 2023 only 210,320 new homes were built of which only 63,605 were classed as affordable.

The provision of Short Term accommodation has created thousands of jobs across the UK as well as providing Landlords with an alternative to long term rental in a difficult financial market and should not become the scapegoat for a historical failure in the UK housing market.