Summary: The UK government is considering granting local councils additional powers to regulate short-term lets and second homes, aiming to ease housing pressures on local communities. Measures under review include council tax premiums and increased Stamp Duty Land Tax rates, alongside a mandatory national registration scheme for short-term lets.
Government eyes stronger council powers on short-term lets and second homes
The government has indicated it may provide councils with greater authority to tackle the impact of short-term lets and second homes on housing availability and affordability. Housing Minister Matthew Pennycook confirmed this in response to a written parliamentary question on 15 June 2026.
Additional council powers under consideration
Mr Pennycook acknowledged that excessive concentrations of short-term lets and second homes can reduce the supply of homes for local residents and strain local services. Currently, councils can impose a premium of up to 100% on the council tax bills of second homes, which helps fund local initiatives to address these impacts.
From 31 October 2024, the higher rates of Stamp Duty Land Tax (SDLT) on additional dwellings increased from three to five percentage points above standard rates. This change aims to favour first-time buyers and home movers over second home purchasers, landlords, and property businesses.
The government is actively considering what further powers might be granted to local authorities to respond effectively to the challenges posed by short-term lets and second homes.
Mandatory national registration scheme for short-term lets
As previously reported by Property118, the government plans to introduce a mandatory national registration scheme for short-term lets. Under this scheme, hosts will be required to register their property address and display a unique reference number on all listing platforms.
Hosts must also confirm compliance with existing regulations, including fire safety, gas, and electrical certifications, ensuring safer and more accountable short-term letting practices.
Practical support for landlords managing new regulations
With potential new powers for councils and a national registration scheme on the horizon, landlords should prepare to navigate evolving compliance requirements. Keeping thorough records of property details, safety certifications, and tenancy arrangements will be increasingly important.
Preparing your portfolio for the new requirements
As the regulatory environment around short-term lets and second homes develops, TLA membership offers landlords access to practical compliance resources and guidance tailored to these changes. TLA’s new property management and compliance platform, currently available in BETA testing, is designed to help landlords organise property information, manage important documents, and keep track of compliance activities in one place.
Members can benefit from support materials that address the challenges of managing short-term lets and second homes, helping them stay informed and organised as new rules come into effect. Readers interested in practical assistance can explore TLA membership and learn more about ORBIT™ BETA access.
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