In England planning law in this regard is currently being reconsidered after a public consultation. All properties are allocated a planning “use class”, and as things stand, like a family home, a holiday let falls under Use Class C3. There are different rules in Wales.
Use class C3 relates to a “dwelling-house commonly occupied by ‘a single person or by people to be regarded as forming a single household”. A home being used as a holiday let is not considered to be development purely by virtue of a change in its use from home to a ‘holiday home’, because its change may not be ‘material’ and therefore may not require planning permission. The planning system allows for local consideration of the merits of individual cases “as a matter of fact and degree” as to whether there is a material change of use requiring planning permission.
This use class itself makes no distinction between whether the dwelling-house is used as a sole or main home, for personal or commercial use, or its tenure (rental or home ownership). In reality each case depends on its own facts, such as the nature of the premises, its location, and the extent of its use as a holiday let, both in terms of the amount of the year it is used as such, and the extent of the premises used for this purpose. For example, one bedroom in someone’s home used very occasionally as guest accommodation is much less likely to need planning permission compared to a large property which is used exclusively for guest accommodation throughout the year.
In addition, there are “permitted development rights” (PDRs) which are a national grant of planning permission by the Secretary of State, including for the material change of use, and apply to England only. What they mean is that where stipulated a change of use may be made without the need to seek formal permission.
In London only, households that pay council tax may let out their home for up to 90 nights in a calendar year for temporary sleeping accommodation. Letting for more than 90 nights constitutes a material change of use and planning permission is required.
The leading case law on this is the Moore case, in which it was held that using a dwelling-house for commercial holiday lets would not always amount to a material change, and therefore would not always need planning permission. Although the use of a dwelling for a commercial holiday let may in some cases be considered a material change on a fact and degree basis, and in each case the answer would depend on the characteristics of the use as holiday accommodation.
In a very recent case appealed to the Planning Inspectorate, an enforcement notice (EN) had been issued by the local authority alleging that a material change of use had occurred as a dwelling-house was being used as commercial short-term holiday let accommodation. There was no dispute that the lawful use class of the property was as a dwelling-house (Class C3). The property owner argued that there had been no breach of planning control because the use of the property for holiday letting was not materially different in character from the lawful use as a dwelling-house.
The Planning Inspector (PI) felt it was necessary to compare the character of the current use with that of the actual previous lawful use. Both parties referred to the Moore case as the basis for considering whether a material change of use from a dwelling-house to a holiday or commercial residential use had occurred.
The PI decided there was a largely transient pattern of occupancy compared to the more consistent pattern of occupancy associated with a “normal” dwelling-house. Whilst it was accepted that occupation of the property as a dwelling-house by a single household could still generate activity, noise and disturbance, in this case the turnover of guests appeared to have resulted in a higher incidence of noisy socialising and party type activities. He felt that whilst this may go unnoticed in a busy town or city, here the property was in a relatively quiet rural village. As both a matter of fact and degree, the character of the use as a short-term holiday let was materially different from use as a dwelling-house, and therefore the appeal against the EN failed.
There are two factsheets available on the Hub, one outlining the law relating to holiday lets in England, and the other setting out the position in Wales.