New Renting Rules for Londoners Part I

thesqua.re

11 Jul 2014

travel management

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London follows on from months of new legislation regulating short term rentals being introduced across the globe.

Earlier in June the Community Secretary, Eric Pickles, announced the introduction of new legislation that would effectively end the rules currently in place that prevent private home owners from renting their homes for a period of less than 3 months without seeking planning permission from the council first; a technicality that doesn’t apply anywhere else in the UK.

The legislation, that dates back to 1973, is said to be outdated in a society where the Internet directly affects the way in which we live and work and will be pushed through parliament. The rules have already been reformed on renting unused private parking spaces in the capital, which has paved the way for the same to be applied to renting a private home for short periods of time.

These reforms are expected to be of huge benefit to London’s tourism sector, which welcomes over 5 million tourists to the capital each year, providing another collection of competitively price accommodation. This new legislation will give families the freedom to rent out their homes for short periods of time, allowing them to earn extra cash while they are away on holiday and avoid the red tape that has come with applying for a council permit in the past. is said to be outdated in a society where the Internet directly affects the way in which we live and work and will be pushed through parliament. The rules have already been reformed on renting unused private parking spaces in the capital, which has paved the way for the same to be applied to renting a private home for short periods of time.

So, where does that leave the serviced apartment providers? Without having to cut through the red tape currently in place it will certainly be easier to sell unused product in between long term corporate lets, ensuring continuous occupancy. However, it may not be economically viable for those providers that have product in several locations and only one housekeeping team. For these serviced apartment companies, to sell short term lets on an individual night or weekly basis will demand a considerable increase in travel costs and/or additional housekeeping staff, which, in all probability, won’t be offset by the added income these short term lets will offer.

It remains to be seen how exactly this new legislation will affect the serviced apartment sector but reforming these outdated renting rules can only be healthy for the London accommodation sector at large. Watch this space!