A Cornwall MP has launched a bid to ban short-let and holiday let landlords from switching to business lets and therefore avoiding recent hikes in council tax.
Liberal Democrat MP (main image) Ben Maguire’s ‘Airbnb Bill’ proposes that homeowners should be required to seek planning permission before short-term letting their property. He believes this would close a loophole which allows them to avoid council tax by reclassifying their second homes as business lets, reports the BBC.
Before a short-term let can be assessed for business rates in England, it must first have been available for short-term letting for at least 140 days in the previous year and actually let for at least 70 days in the previous year.
Describing a surplus of holiday let homes, Maguire says there are 14,000 second homes in Cornwall, while 22,000 people are on the housing waiting list. He explains: “The bill is about restoring fairness in our system and giving local people a better chance at owning their own home.”
The Private Members' Bill - officially the Short Term Lets Planning Permission Bill - will get its second reading on the 4th July.
Posting on social media, he said: "It’s a simple change with a big impact: requiring planning permission before homes can be turned into short-term holiday lets, to put a stop to the avoidance of paying council tax.
"Enough is enough. Too many local families are being priced out while homes sit empty or churned through weekly rentals. This Bill is about restoring fairness in our system, and giving local people a better chance at owning their own home."
A Ministry of Housing, Communities and Local Government spokesperson says councils now have powers to increase council tax bills of second homes, while it is committed to introducing a national mandatory registration scheme for short-term lets. Labour also plans to bring in tougher planning requirements for new holiday lets.
Brighton & Hove City Council hopes to introduce a similar crackdown by making better use of the planning system and exploring options to licence and register the estimated 2,000 to 6,000 homes in the city being used as short-term and holiday lets. It will vote later this month on proposals for creating a zone or zones where Airbnbs are permitted.
Wales has already increased thresholds for properties to be eligible for business rates; they must be available to let for at least 252 days and ‘actually’ let for at least 182 days in any 12-month period, to prove that they are being let regularly and make a substantial contribution to the local economy.
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