If you’re planning on investing in serviced accommodation or renting out an existing property on a short-term basis, you need to be aware of the planning rules. This is especially important as new planning rules for short-term lets in England were announced in February 2024 and come into effect this summer.
As the regulations change, we thought we would answer some frequently asked questions about planning permission for serviced accommodation. So, how have these regulations changed?
New rules require any property let on a short-term basis or as a holiday home for more than 90 nights a year to seek planning permission from the local authority. This change includes the introduction of a new planning ‘use class’ and a new mandatory national register for short-term lets, including serviced accommodation.
Read on for more detailed information about the new planning rules for serviced accommodation.
What Are the New Rules on Planning Permission for Serviced Accommodation?
In February 2024, the Conservative government in power at the time announced new rules for short-term lets, including serviced accommodation. Local councils will be given increased power to control new short-term lets by making them subject to the planning permission process. If you currently using a serviced accommodation management company, they will be able to advise you on how these changes affect you and your property.
Here’s everything you need to know about these new rules:
New C5 Use Class for Short-Term Lets
Currently, short-term lets belong to the same use class as family homes (C3). These planning changes would involve the creation of a new C5 use class for short-term lets that are not used as a sole or main home.
Existing short-term lets and serviced accommodation will automatically be reclassified into the new C5 use class and won’t require planning permission. However, new short-term rentals will need to apply to their local council for planning permission.
The 90-Night Rule
Homeowners will still be able to let out their own main or sole home for up to 90 nights throughout the year, without requiring planning permission.
Mandatory National Register
There will be a new mandatory national register for all short-term lets in a local area. This allows local councils to understand the prevalence of short-term rentals in the area and ensure health and safety rules are being met.
Associated Permitted Development Rights
The government has also stated that it intends to introduce associated permitted development rights. One would allow a property to be changed from a short-term rental to a residential dwelling. A second one would allow a residential dwelling to be changed to a short-term let.
Local authorities would be able to remove these permissions and require full planning permission if they believe it’s necessary. For example, if they are concerned about a rising number of short-term lets.
Hotels and Serviced Apartments
The proposed changes only apply to short-term lets so it won’t affect hotels, hostels or traditional B&Bs. However, it will apply to any serviced apartments with a C3 (residential) use class. These serviced apartments will be reclassified into the new C5 use class and must be compliant with other regulations, such as the mandatory national register.
Serviced apartments and accommodation with a C1 (hotel) use class will be unaffected.
Why Have the Rules Around Planning Permission for Short-Term Lets Changed?
These new rules are the result of the consultation on a registration on short-term lets held in 2023. There is a concern that the growing number of short-term lets and serviced accommodation means local people are struggling to afford housing in certain areas of the country.
The previous Secretary of State for Levelling Up Housing and Communities, Michael Gove has said:
“Too many local families and young people feel they are being shut out of the housing market and denied the opportunity to rent or buy in their own community.”
However, these legislation changes are not designed to completely prevent the growth of short-term rentals and serviced accommodation but rather balance the needs of local tourism and local people. The previous Tourism Minister, Julia Lopez has said:
“Short-term lets provide flexibility for homeowners and give tourists more accommodation options than ever before, but this should not prevent local people from being able to buy or rent homes in their area.”
If you’re considering setting up your property as serviced accommodation in Sheffield, we can help streamline the process.
Serviced accommodation can generate significantly higher yields than a standard tenancy, but it can be time-intensive. You’ll need to consider advertising, managing enquiries and reservations, cleaning, property maintenance and legal requirements. Here’s how we can help…
At MOVR, we’ve created customised software applications to ensure everything runs smoothly and you maximise your return on investment. Our team has over a decade of experience managing serviced accommodation in Sheffield. We’ll ensure that all of the legal requirements are completed and you have the correct planning permission in place. MOVR offers a fully managed service, which includes cleaning and maintenance, giving you more time to focus on doing what you want, rather than managing your property!
Get in touch with us today to learn more about how we can help simplify your serviced accommodation.
Do I Need a Licence for Serviced Accommodation?
Whether you need a specific licence for serviced accommodation will depend on your local council. In some areas, you’ll require registration or a special permit to operate legally, while others don’t require any form of licensing.
Is Serviced Accommodation Classed as Commercial Property?
What Planning Class is Serviced Accommodation?
Is There Serviced Accommodation in Sheffield?
MOVR offers a range of high-quality serviced accommodation in Sheffield and the surrounding areas. All of our serviced accommodation includes high-speed internet, modern furnishings, complete self-catering facilities and self-check-in. Our team provides everything you need to enjoy your stay, whether you’re travelling for business or leisure.
We offer:
The MOVR team has over 10 years of experience working in short-term and serviced accommodation in Sheffield. We are members of the National Landlords Association (NRLA) and UK Association of Letting Agents (UKALA). You can rely on our professional team to handle your booking and make sure you have a five-star stay with us.
View our range of serviced accommodation in Sheffield or get in contact with our team if you have any questions.
REFERENCED IN THIS STORY
GOV.UK, “Short-term lets rules to protect communities and keep homes available”. GOV.UK, 19 February 2024
GOV.UK, “Consultation on a registration scheme for short-term lets in England”. GOV.UK, 19 July 2024
Legislation.GOV.UK, “The Town and Country Planning (Use Classes) Order 1987”. Legislation.GOV.UK, 2024
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