Seaside towns in chaos as new 'Airbnb tax' proposed as 22k people wait for homes
In what could be a huge blow for second homeowners, MP Ben Maguire has presented new legislation to parliament to crack down on council tax 'dodgers' in popular seaside areas
A bold new law aiming to crack down on council tax 'dodgers' in several of the UK's most beloved seaside towns has been unveiled.
The Short-term Lets (Planning Permission) Bill - often touted as the 'Airbnb bill' - was presented to parliament earlier this month (Tuesday, June 3) by Liberal Democrat MP for North Cornwall, Ben Maguire. If passed, homeowners in the region will need formal planning permission before being able to change the status of a residential property to a short-term holiday let.
It seeks to close a sneaky 'loophole' that has seen second homeowners convert their properties into Airbnb-style lets without needing approval. If a person rents out their second-home as a 'self-catering accommodation' - they can claim they are a small business, allowing them to dodge paying the second home council tax premium.
To successfully qualify for business rates, a short-term let must have been available to rent for a minimum of 140 days in the prior year and must have actually been rented out for at least 70 days during that period. As long as this criteria is met, many homeowners can claim they're running a small business - even if they're primarily using the property as a second home for themselves.
According to the BBC, Joh Brown, CEO of Cornwall Chamber Commerce, welcomed the bill - but warned it was not a 'silver bullet'. He argued there is currently a 'surplus' of Airbnb homes in Cornwall despite a staggering 22,000 locals being put on a waiting list for secure housing.
"It must sit alongside tougher regulation and a robust registration system for short-term lets," he added. "If it deters those looking to extract profit from Cornwall without putting anything back — good. If it helps restore housing stock for local people, even better."
John added that the bill could be a 'win for all of Cornwall' if it allowed hospitality and tourism workers to finally find secure housing. The news follows Cornwall Council's 2023 decision to charge second homeowners double the amount of council tax to alleviate the affordability crisis crippling the county.
People who leave their properties empty and unfurnished for over a year will also face a 100 per cent premium on their bill. It is estimated the new rules will bring in a staggering £25 million for the council every year.
"Enough is enough," MP Ben Maguire wrote on Facebook. "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."
Due to soaring demand, many Airbnb owners can get away with charging eye-watering prices to tourists - especially during the summer season. For example, a weekend's stay in a cottage in Padstow - a popular holiday resort - would you set you back a whopping £468. This is based on four guests sharing two bedrooms.
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