Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether her Department has undertaken an assessment of the potential impact of business rates reliefs and other fiscal incentives available to self-catering holiday accommodation businesses on housing supply and affordability in areas with high concentrations of holiday lets.

The Government recognises that, while short-term lets may in some cases benefit local economies, excessive concentrations in some areas can impact the availability and affordability of homes to buy and rent, as well as place pressures on local services.

The Government published a Call for Evidence seeking input on the impacts of business rates on investment and options to address barriers. As part of a Call for Evidence, the Government sought views on the tax treatment of short-term lets in the business rates system to ensure that this system is supporting genuine small businesses and homeowners are paying their fair share towards local services. This call for evidence is available here. The Call for Evidence closed on 18 February and the Government will respond in due course.

More widely, we have abolished the Furnished Holiday Lettings tax regime, removing the preferential tax treatment previously available to holiday let owners. The Renters’ Rights Act 2025 also ensures landlords cannot evict existing tenants simply to turn a property into a holiday let. We are also introducing a national registration scheme for short-term lets and considering what additional powers local areas may need to respond to the pressures created by short-term lets.