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Short-Term Let Rules Are Tightening: Act Now Before Permitted Development Rights Vanish
Short-term lets have become part of the landscape across the UK. From Airbnb apartments in city centres to quaint holiday cottages, pods and cabins in national parks, the sector has grown rapidly over the last decade. For some communities, these properties are a vital part of the visitor economy. For others, they are seen as a major factor in rising prices, reduced availability of long-term rental homes and the “hollowing out” of neighbourhoods. That tension has now firmly reached the planning system.
Across the UK, governments are tightening control over short-term lets. In England, ministers have confirmed plans for a new planning use class for short-term lets, associated permitted development rights and a national registration scheme. In Scotland, short-term let licensing and planning control areas are already in force. In Wales, new use classes and targeted Article 4 Directions are reshaping how second homes and short-term holiday accommodation are regulated. If you are considering a holiday let or Airbnb-style investment and are counting on “Airbnb permitted development rights” to avoid full planning permission, you need to understand how fragile those assumptions now are. The key question many people are asking is whether permitted development rights for short-term lets could effectively disappear, not necessarily across the whole UK in one go, but in the places where demand and political pressure are greatest.
We have already explored this trend in Ireland in our blog “Nationwide Rent Pressure Zones: What Ireland’s New Short-Term Let Rules Mean for You (and Why You Must Act Now)”. The Irish reforms are a useful warning for UK hosts and investors about how quickly short-term let rules can tighten.
What permitted development rights actually are
Permitted development rights, often shortened to “PD rights”, are created by national planning legislation, specifically by the General Permitted Development Order (GPDO) for each UK nation. Through this secondary legislation, made by the relevant government under powers granted by primary planning Acts, certain types of development are given automatic planning permission, provided the conditions and limitations are met.
Instead of requiring a full planning application for every small change, the system allows defined categories of building work or changes of use to proceed under PD. Historically, many owners have relied on permitted development to make modest physical changes to their homes or, in some circumstances, to change the use of a property without submitting a full application.
However, these rights are not set in stone. National governments can change the scope of permitted development at any time through new legislation. Locally, planning authorities have an important tool called an Article 4 Direction. When a council makes an Article 4 Direction and it is confirmed, it removes specific permitted development rights in a defined area. From that point on, the affected development can only go ahead with planning permission instead of automatically under PD.
From an expert perspective, this is where many people underestimate the risk. As Aaron Basi, Head of Planning at Planning By Design and a Chartered Town Planner, says: “Permitted development rights are not a permanent loophole in the system; they’re a policy tool that can be tightened or taken away when pressures change. They can work brilliantly for the right project, but you should never build a whole short-term let strategy on the assumption that PD will always be there.”
In other words, PD rights are useful, but they are always subject to review and change, especially where there is clear political pressure, as there is now with short-term lets.
England: towards a C5 short-term let use class and a national registration scheme
In England, the Government has consulted on a new planning framework for short-term lets. The package includes a new planning use class for short-term lets that are not used as anyone’s sole or main home, associated permitted development rights for changes between standard dwellinghouses and that new class, and a mandatory national registration scheme for short-term lets.
The new use class is widely referred to as “C5” in professional commentary. Under this model, a normal home occupied as a main residence remains in Class C3, while a property used as a dedicated short-term let, such as a holiday let or serviced apartment, would sit in C5. Existing dedicated short-term lets that meet the final definition are expected, broadly, to be reclassified into the new use class without needing a fresh planning application.
Alongside the new use class, the Government has indicated that there will be permitted development rights to move between C3 and C5 in either direction. In theory, this could give flexibility to owners who want to switch between using a property as a main home and operating it as a short-term let. Yet this flexibility comes with an important caveat: local planning authorities will be able to use Article 4 Directions to withdraw those PD rights in areas where short-term lets are putting pressure on housing availability or community sustainability.
Alongside the new use class, the Government has indicated that there will be permitted development rights to move between C3 and C5 in either direction. In theory, this could give flexibility to owners who want to switch between using a property as a main home and operating it as a short-term let. Yet this flexibility comes with an important caveat: local planning authorities will be able to use Article 4 Directions to withdraw those PD rights in areas where short-term lets are putting pressure on housing availability or community sustainability.
As Aaron Basi, Head of Planning at Planning By Design, explains: “On paper, the new permitted development rights between C3 and C5 might look like a simple shortcut for investors. In reality, the councils under the most housing pressure are the ones most likely to move quickly and switch those rights off. What looks like PD on a government webpage may not exist on the ground in the very areas you actually want to buy. If you don’t get a proper planning appraisal up front, your assumptions about PD can be dangerously optimistic.”
At the time of writing, the consultation on the registration scheme has closed and the Government has confirmed its intention to proceed, but the detailed secondary legislation and commencement dates are still awaited. The direction of travel is clear: in the medium term, a short-term let in England is likely to sit in its own use class, be visible on a national register and be subject to more explicit planning control than today.
London’s 90-night rule: a live example of tighter control
In London, some of the future model already exists. Letting an entire dwelling for short periods is capped at 90 nights per calendar year if you wish to avoid planning permission. Beyond that threshold, using a home for short-term letting is generally treated as a material change of use requiring permission.
Platforms such as Airbnb have built this “90-night rule” into their systems for London listings, automatically preventing hosts from accepting further bookings for whole-home short-term lets once the limit is reached, unless they can demonstrate that planning permission has been granted. The experience of London demonstrates in practical terms that even where some PD or flexibility exists on paper, local policy and enforcement can effectively remove it.
From a planning perspective, Aaron Basi, Head of Planning at Planning By Design frequently uses London as a case study when advising clients elsewhere in England. His message is simple: if it can happen in London, there is nothing to stop a similar pattern emerging in other cities and tourist areas once the legislative tools are in place.
Scotland and Wales: licensing, control areas and new use classes
Scotland has moved further and faster than England in terms of regulating short-term lets. A mandatory licensing scheme now applies across the country, requiring hosts to obtain a licence to operate. In addition, councils can designate short-term let control areas. Within a control area, using an entire dwelling as a short-term let is generally treated as a change of use that always requires planning permission, regardless of whether it might have looked like a grey area before.
The City of Edinburgh became the first such control area, and Badenoch and Strathspey in the Highlands followed. There has been active debate about extending control arrangements across the wider Highlands, with councillors citing a severe shortage of affordable housing for local residents and an explosion of short-term rental properties.
In Wales, the planning framework has been reshaped through the introduction of three separate residential use classes. Class C3 is now reserved for main residences, C5 for second homes used as a dwelling but not as a sole or main residence, and C6 for short-term holiday lets. Welsh Ministers have also amended permitted development so that changes between these classes can be PD, but crucially local authorities can again use Article 4 Directions to withdraw those rights.
In Wales, the planning framework has been reshaped through the introduction of three separate residential use classes. Class C3 is now reserved for main residences, C5 for second homes used as a dwelling but not as a sole or main residence, and C6 for short-term holiday lets. Welsh Ministers have also amended permitted development so that changes between these classes can be PD, but crucially local authorities can again use Article 4 Directions to withdraw those rights.
That is exactly what has happened in places such as Gwynedd and Eryri (Snowdonia), where Article 4 Directions mean that moving between C3, C5 and C6, for example, turning a main residence into a short-term holiday let requires planning permission. This provides a real-world example of how, at a local level, “Airbnb permitted development rights” in effect no longer exist; every meaningful change of use into a short-term let is brought back into the planning application system.
Scotland and Wales are not outliers but “early adopters” of tools that England is now starting to embrace. For hosts and investors, that means you cannot just look at today’s English position in isolation; you need to understand the broader UK and Irish pattern, which is consistently towards more control, not less.
Could all permitted development rights be removed for short-term lets?
Framed as a UK-wide, one-size-fits-all change, the idea of abolishing every permitted development right related to short-term lets is unlikely. Permitted development is deeply embedded in how the planning system manages lower-impact changes without overwhelming local authorities with applications. However, if you look at the way England’s C5 proposals, Scotland’s control areas and Wales’ use classes interact with Article 4 Directions, a more nuanced and more realistic picture emerges. National government defines the new use class and the default PD rights. Local government then decides, area by area, whether those PD rights are appropriate. Where housing pressures are acute or communities are seen as being hollowed out by excessive holiday lets, councils now have clear tools to remove the PD route and require full planning permission instead.
In practice, that can mean that for a host or investor operating in some of the most desirable tourist locations, there is very little meaningful permitted development freedom left. A new short-term let may need a licence, a planning application, evidence around amenity and housing impacts, and in some cases a Lawful Development Certificate to confirm existing use. For people searching phrases like “short term let planning permission UK”, “Airbnb permitted development rights” or “holiday let planning permission England”, the old rule-of-thumb that short-term letting was a planning grey area is increasingly out of date.
From Aaron’s Basi, Head of Planning at Planning By Design point of view, the key shift is psychological: “Short-term lets need to be treated as a planning project from day one, not as a side hustle you hope nobody notices.” If you plan on the basis that PD might not be available, and then find there is a PD route, that’s a bonus. If you assume PD will save you and it has already been removed locally, you could find yourself in serious difficulty. Our Ireland article on Nationwide Rent Pressure Zones makes the same point in a different jurisdiction: when governments decide that short-term lets are adversely affecting housing, they will not hesitate to close perceived loopholes and require explicit consent. The UK is clearly moving down a similar path, even if the mechanisms differ.
Why you need professionals like Planning By Design
Against this backdrop, trying to self-diagnose whether your proposal is lawful based on generic internet advice is risky. Each local planning authority is interpreting and implementing these tools in its own way. Some are already moving quickly with Article 4 Directions and control areas; others will follow as political pressure builds.
Planning By Design, with in-house RTPI chartered town planners and a UK-wide perspective, can help you navigate this complexity. Instead of guessing whether a change will be treated as a material change of use, Planning By Design can carry out a structured planning appraisal tailored to your site. That includes reviewing any existing Article 4 Directions, emerging local plan policies and the likely attitude of your local authority to short-term accommodation in that particular street or settlement. For some projects, the best route may be a full planning application, for others a Lawful Development Certificate to lock in an existing use, and in some cases a strategic redesign to reduce impacts on neighbours and housing supply.
Planning By Design, with in-house RTPI chartered town planners and a UK-wide perspective, can help you navigate this complexity. Instead of guessing whether a change will be treated as a material change of use, Planning By Design can carry out a structured planning appraisal tailored to your site. That includes reviewing any existing Article 4 Directions, emerging local plan policies and the likely attitude of your local authority to short-term accommodation in that particular street or settlement. For some projects, the best route may be a full planning application, for others a Lawful Development Certificate to lock in an existing use, and in some cases a strategic redesign to reduce impacts on neighbours and housing supply.
Establishing a lawful use early, or securing a robust planning permission before new controls bite, can make the difference between a viable long-term investment and a use that is vulnerable to challenge.
Why you should act fast if you are considering a short-term let
The experience from Ireland which we explored in detail in “Nationwide Rent Pressure Zones: What Ireland’s New Short-Term Let Rules Mean for You and Why You Must Act Now” is that once a political consensus forms, regulatory change can tighten quite quickly. Ireland’s new framework has left many unprepared hosts with far fewer options than they expected.
The UK is now in a similar phase for short-term lets. In England, the new short-term let use class, the associated permitted development rights and the national register are not yet fully implemented, but the broad structure is set and the Government continues to signal its commitment to proceed. Scotland and Wales have already shown that, once the tools exist, ministers and councils are prepared to use them, especially in high-pressure areas.
Aaron’s advice to clients is not to panic, but not to wait passively either. If you are serious about running a short-term let, you should be asking now whether you need planning permission, whether PD genuinely applies in your area, and whether you should be securing consent or a Lawful Development Certificate before new restrictions come into force.
If you delay decisions on your short-term let plans for another year or two, you may find that the PD route you were hoping to rely on has been removed by an Article 4 Direction, or that your chosen area has been designated a control zone. You may still be able to proceed, but the tests you must satisfy could be more demanding, and the risk of refusal higher. If you are already operating a short-term let without clear planning status, waiting may also weaken your position when you later try to prove an established lawful use.
Acting now does not mean rushing ahead blindly. It means getting an informed view of where you stand, what changes are likely in your local authority, and how you can position your project so that it stands the best chance of long-term success.
Not sure where to start? Contact our expert planning team for a free, no-obligation consultation today. Planning By Design can help you understand your current position, the direction of policy in your area, and the most sensible next steps, whether that is a planning application, a Lawful Development Certificate, or a different strategy altogether.
A versatile and resilient Chartered MRTPI Town Planner with private and public sector experience. Aaron has a deep understanding of the planning process as both the applicant and local planning authority. Whether small scale residential or large scale commercial developments his expertise ensures the best advice and robust planning applications.
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