Saturday, April 15, 2023

Airbnb Holiday Serviced Accommodation Rentals To Be Regulated In UK Seas...

Airbnb Holiday Serviced Accommodation Rentals To Be Regulated In UK Seaside Resorts, Gove Warns

Michael Gove, the UK's Secretary of State for Environment, Food and Rural Affairs, has proposed new regulations for short-term rentals in holiday resorts, including those listed on Airbnb.

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These regulations aim to address concerns over the impact of such rentals on the availability and affordability of housing in these areas. House prices have surged in popular coastal beauty spots in parts of Devon, Cornwall and Norfolk as investors swoop up property for holiday lets as higher rents.

Under the proposed rules, local councils would have the power to require property owners to obtain planning permission before renting out their homes for short periods. This would allow councils to regulate the number of short-term rentals in an area, and to ensure that they do not have a negative impact on the availability of long-term housing.

Watch video version - https://youtu.be/QvkdXPYjRMw

The regulations would also require Airbnb hosts to register their properties with their local council, and to comply with safety and hygiene standards.

Although these regulations have not yet been implemented, and it remains to be seen how they will be received by the public and by Airbnb hosts, the news will nevertheless be yet another worry to weary landlords.

Thousands of landlords have switched their business model to the more lucrative holiday, or serviced accommodation (SA) rentals, as an alternative standard buy-to-let.

As many as 85,000 UK Landlords have quit the rental market in the last few years due to higher taxes and government red tape. Rents have increased as demand outstrips supply - https://youtu.be/NME3nEu8dAQ

Buy-to-let property owners face further problems ahead with the planned abolition of sec 21 no fault evictions and higher EPC energy rating standards.

Could there be a property crash?

Property prices surged by about 25% across the UK from the start of 2020 until Autumn 2022.

With a pending recession and higher interest rates, house prices have slumped by more than 4% from that peak, according to March's figures from the Nationwide Building Society.

Prices have fallen for five consecutive months as the Bank of England struggles to control inflation.

Does this mean there will be a 2008-style crash? Much depends on government moves to balance the economy, as no Prime Minister wants to face a general election during a property crash.

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