Niall Mellonie is co-founder and owner of Laik Lake District holiday lets in Windermere. Here he discusses some proposed holiday letting reform which could have a major impact on the market 

Niall says: "Vital economic contribution or stealer of residential availability, holiday letting is a perennial debate in tourist hotspots like the Lake District. Concerns about increasing numbers and inferior standards are stoked by the proliferation of temptingly easy and relatively unregulated platforms like Airbnb and Booking.com. Paradoxically (but surely predictably?), the introduction of less favourable buy-to-let tax rates swerved many landlords into short-term tourism, further decreasing residential availability.

Last March, the incumbent Conservative government announced significant changes to short term and holiday lets. While not making it into the King’s Speech, our new government is likely to convert these into law, making it vital to be aware of potential impacts and responsibilities.

The biggest, a mandatory Holiday Let Registration Scheme for short-term and holiday lets, is clearly intended to track numbers, and keep all landlords and agents up to date with health and safety compliance. While very laudable at first look, I hope the (inevitable) accompanying mandatory fees don’t simply justify reams of impenetrable paperwork for agents to fight our way through (excuse any suggestion of jaded experience).

Secondly, required council planning permission to convert residential property to holiday and short-term letting (and, potentially, second homes). For the first time, this would give Cumberland Council and Westmorland and Furness Council statutory powers to control numbers. Delving deeper, I read that current holiday lets (also hotels, hostels and B&Bs) will likely not need to apply, nor people renting out their main home for fewer than 90 nights a year, indications the policy could have fewer teeth than its bold headlines suggest.

Potential Impact for Cumbrian Residents, Businesses and Visitors

Mandatory proof of building, hygiene and safety standards, a registration process and fees, and council powers to unilaterally limit numbers will surely result in a reduction of holiday lets: success? If achieved through a natural “cull” of substandard properties, this is certainly good news for visitors, locals and ethical landlords and agents like ourselves: we founded Laik on the principle that providing the highest quality accommodation encourages visitors year-round, benefitting the local economy by preventing empty properties and low-season slumps.

All would cheer if this legislation saw properties returned to residential lettings at reasonable rates; although, like unintended buy-to-let consequences, some fear it could simply see more houses put up for sale at the locals-unfriendly prices associated with our region. Fewer (and, going by the laws of supply and demand, increasingly expensive?) lets could unfairly make visiting our wonderful county untenable to a section of the population, all impacting the Lakes economy, hospitality and attractions industries, and local employment. Clearly, it’s a fine balance between “too many” and “not enough”.

Next Steps

With no details in the King’s Speech, businesses should use this time to get up-to-date with all relevant health and safety certification, for example independent written fire risk assessments, which became mandatory in October 2023. As we watch keenly for updates, I’m keeping an eye on very similar Welsh legislation, currently progressing ahead of ours. Interesting times…