Landlords are turning their backs on short let tenancies including Airbnbs in favour of renting out their properties on a longer term basis.
Sheldon Bosley Knight lettings agents have seen the shift driven in part by the cost of living increases, fewer bookings for properties and greater financial security within the long term letting sector.
Many also cite government plans to crack down on second homeowners who falsely claim they rent out properties as holiday lets as a reason to change tack.
Under government plans which come into force in April next year, a registration scheme for holiday lets in England will be introduced.
Properties must be rented out for a minimum of 70 days a year to qualify for business rates and they will have to be available for rent for 140 days a year to qualify. Owners will have to provide evidence such advertising material, letting details and receipts.
Failure to do so will result in the owners paying the council tax.
Secretary of State for Levelling Up, Michael Gove MP, said the move was designed to protect genuine small holiday letting businesses and support local economies.
Around 65,000 holiday lets in England are liable for business rates of which around 97% have rateable values of up to £12,000. Currently there is no requirement for evidence to be produced that a property has actually been commercially let out.
Sheldon Bosley Knight’s lettings manager, Sarah Scaysbrook said landlords were beginning to re-evaluate their portfolios for a variety of reasons.
She said: “Being based in the North Cotswolds, I have found many landlords have been drawn towards Airbnb for the yields. However, this year the tide seems to be turning.
“I have recently met with clients who are reporting that bookings appear to be down for 2022. Lower occupancy rates could be down to a post pandemic desire for overseas holidays again.
“With the cost of living increase also encouraging some holiday makers to perhaps think twice about that Cotswold or Stratford upon Avon mini-break, landlords seem to be re-evaluating.
“There is still greater demand than supply in the private rental sector which continues to push rents upwards.
“Astute landlords have picked up on these trends and are now changing tactics, moving towards longer term lets for greater financial security in these uncertain times.”