Housing minister Matthew Pennycook has hinted that extra powers to stop holiday lets and second homes may be needed - including planning permission.

In response to a written question from shadow housing secretary Kevin Hollinrake about whether he had considered requiring those wanting to use houses for second homes and short-term lets to seek planning permission, Pennycook said he was committed to introducing a registration scheme and removing the furnished holiday lets rules to ensure all income from property was treated the same for tax purposes.

“We also recognise that more needs to be done and are considering what additional powers we might give local authorities to enable them to respond to the pressures created by short-term lets,” he added.

Excessive concentrations

Pennycook said that while second homes and short-term lets could benefit local economies, the government appreciated that excessive concentrations in some areas of the country could impact the availability and affordability of homes, both to rent and buy.

The registration scheme was first pledged last February by the former Conservative housing secretary Michael Gove, and then by the Labour government which last summer promised to bring in the mandatory scheme - but there is still no date for its introduction.

Councils run similar registration schemes in Wales and Northern Ireland, but those in Scotland have been criticised for causing hundreds of properties to close. The Scottish B&B Association has suggested 67% of its members reported that licensing costs had impacted their business revenue and affected their viability.

The Short-Term Accommodation Association has also voiced concerns that a locally run scheme in England could be a “mess” and one step away from an unwanted “poorly done licensing scheme”.

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