ACT Blog: Homes for Residents or Visitors?

15th August 2022

ACT has made a response to a current government Call for Evidence about tourist accommodation. The consultation is specifically about developing a registration scheme for short term holiday lets. Whilst generally supporting the move towards a registration scheme, we have used the opportunity to highlight the impact the unchecked growth of such accommodation has had in parts of Cumbria. The following is an excerpt from our response:

‘Our evidence … comes from a recent survey of our ACT supporters, and from regular liaison with local planners and housing strategy officers. ACT ran a short survey with our 1500 supporters in September October 2021 to find out about local perception of shifts in the private rental market and challenges associated for communities in Cumbria and the Lake District.

55% of respondents said they were aware of property in their community which had been lost to private rental in the past 12 months. Further comment indicates this is the trend towards holiday let specifically and also the second homes market, as property which has previously been available for private rental is unlikely to have any conditions (such as local occupancy) on sale.

Market forces are not working for local residents on average earnings in areas dominated by agriculture, tourism and retail jobs. Many key workers including teachers, are unable to afford homes in the areas where they work.

Some of the comments in relation to the question ‘Do you know of a property in your community which has recently stopped being let out?’ include:

I recently spoke to one landlord about this and his response was “Why would I rent the house out for £500 a month to a tenant when I can get £1,000 a week on AirBnB?”

One property which has recently been sold, which housed people who have rented for many years and worked in hospitality in the valley at the same time… they have probably lost both their home and their jobs.

Yes. A property which comprised of 5 apartments, 3 holiday lets and 2 long term rentals, has recently changed ownership. The new owners gave notice to all the long-term tenants.

In the same survey, we also asked more generally about opportunities for renting privately in Cumbria and the Lake District. 78% of respondents said it would be difficult, with considerable reference to the disparity between local wages and local rents, and the dire shortage of realistic housing options for people in local employment:

A huge problem here in Kendal. Mostly airbnb/holiday homes now. Owners don’t pay council tax, and parking a huge problem.

There is a shortage of rental properties – mainly due to the sorts of properties appropriate for residential lets being used as holiday homes or holiday lets – and rents for those available are high.

There are very few properties left to rent in my area. I rent myself and have had to move 5 times in the last 10 years, as owners decide to sell the property.

The demand is far outweighing the supply at the moment. … Landlords are faced with multiple applications on their properties and in some cases people from out of the area are offering more rental per month to secure the property, pricing locals out of the market.

The unchecked growth of the short-term holiday let market causes real social and economic hardship for many people in local, rural employment. The balance between a thriving visitor based economy and viable rural communities continues to be sorely tested in some areas.’

We fully support the recommended actions articulated by Keswick Community Housing Trust that ‘more needs to be done, starting with better management of the existing housing stock by;

1.  Changing planning legislation to split the C3 (Dwellings) Use categories into Primary Homes, Secondary Homes and Short-term Holiday lets to control the loss of primary residential properties to second homes or holiday lets, as proposed by the Lake District National Park Authority.
2.  Managing further increases in the number of holiday/second homes by introducing a licensing scheme for second homes and holiday lets to control and, if necessary, cap further increases in the number of holiday/second homes, as proposed by Keswick Town Council.
3.  Removing financial incentives from owners of holiday lets and second homes, such as small business rates exemption and reduction in council tax, which encourage the purchase of primary residential properties for these purposes, as proposed by the LDNPA. To this end we call for holiday lets to be brought back into the council tax system (reversing a decision made in the early 2000’s allowing owners of holiday lets to choose between paying council tax or business rates) and, along with second homes, be required to contribute to the provision of local services by paying the full council tax (or multiples thereof). In addition, Keswick Community Housing Trust calls on the Government to require all local authorities to charge, as a minimum, the full rate of council tax on second homes, and to consider whether charging more, as is proposed in Wales, would be benefit local communities through increased funding of local services.
4.  Ensuring that existing property owners abide by any current local occupancy restrictions regarding the use and sale of their properties by making enforcement of these restrictions a properly funded statutory duty.’

If you would like to read our full response, or talk to us about your own experience of housing in a visitor hotspot, please get in touch.

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