Hands Off Short Lets - long term empty homes are bigger problem

The embattled short let and holiday let industry has hit out at what it calls the “rampant hypocrisy” of councils when it comes to the housing crisis.

The Short Term Accommodation Association says that with housing shortages across the country, short term lets and holiday homes are often the scapegoat, blamed for hoovering up properties in desirable locations. 

However, analysis of 313 UK local authority areas shows 58% of them actually have more homes sitting vacant long term than holiday lets.

The STAA, using statistics from holiday home service Key Data, says this blame game shows a misunderstanding of holiday lets’ value to local communities. 

The STAA says: “Holiday lets offer more authentic local experiences to guests than hotels, and are responsible for attracting huge amounts of spending to local businesses. Meanwhile, vacant homes might sit empty for years, not benefitting communities in any way, much like unlet second homes, which sit empty most of the year.”

Looking specifically at touristic areas, the worst affected is Arun Borough, which includes the popular seaside town of Bognor Regis. There are over 400 long-term empty homes in this local authority, 6.7 times more than the 66 holiday lets in the area.

Even in Wales and Scotland — the scene of some of the most aggressive moves to introduce new regulation and taxes for holiday lets — the numbers of empty homes dwarf the size of the holiday let market. 

Welsh councils like Caerphilly and the valleys of Rhondda Cynon Taf have over 5 times more empty homes than holiday lets, while the Highlands in Scotland have 4.4 times as many.

The biggest difference in raw numbers was in Aberdeen, where there are 4,370 more empty homes than holiday lets — 4.6 times more. These are thousands of properties that bring no value to the local community in Scotland’s third largest city.

The scourge of empty homes highlights the flaw at the centre of Britain’s housing market claims the association. 

Many owners are wealthy enough to simply keep their properties empty, or are happy to bide their time waiting for valuations to provide them with a better return. 

There are few incentives to rent out or sell up, despite moves by some councils to punish long-term empty homes with tax premiums, which often fail to encourage owners to bring properties back into full-time use.

Holiday lets, on the other hand, bring in revenue for communities, many of which are not well served by hotels. 

An Oxford Economics report found that in 2021, the short-term let sector brought in £27.7 billion to GDP, and supported almost half a million jobs. Despite this, new measures mean that holiday lets can be subject to similar tax premiums as long-term vacant homes. 

There are 330,325 long-term empty homes in England, Scotland and Wales according to latest official figures (1). 

Andy Fenner, chief executive of the UK Short Term Accommodation Association, says: “Holiday lets have been taking the blame for the housing crisis for a long time but this research reveals the true picture. 

“We all need somewhere to live and we all need somewhere to work. This research shows that holiday lets are not to blame for the housing crisis, but rather the blame lies with councils allowing homes to sit idle. 

“Holiday lets create much-needed jobs in communities up and down the country, empty homes produce nothing. Most councils are sitting on so many long-term empty homes that they eclipse the numbers of holiday lets in their area. This is where policymakers should be looking to solve the housing crisis, not scapegoating an industry responsible for jobs and investment in areas that often have nothing else.

“This is rampant hypocrisy when councils across the UK are being encouraged to strangle this industry with council tax surcharges, planning requirements and licensing schemes. Empty homes benefit no one, and can even have negative effects on neighbours and local communities when left unattended and in disrepair, while short-term lets are a vibrant part of our tourist industry, bringing in visitors from around the world.

“The way people are being demonised for letting out their homes to families who want to enjoy a holiday in the UK is outrageous, especially while empty homes are barely talked about as a problem. The housing crisis is a complex issue, and it cannot be solved overnight, but making use of our existing housing stock would be a great place to start.”