It follows a crackdown by Michael Gove who previously said seaside towns were in danger of turning into “permanent” Airbnb settings.
The Levelling Up Secretary has confirmed proposals to introduce a new planning rules for Airbnbs which will give councils powers to control the number of holiday homes in their towns.
Private landlords have been switching to the holiday let sector to benefit from a more relaxed taxation system, having been pushed out of the buy-to-let market following a string of tax rule changes.
Since 2016, for example, private buy-to-let landlords have not been able to claim mortgage interest tax relief. They have also been stripped of tax allowances on the wear and tear of their properties and face a stamp duty surcharge when purchasing new properties.
Chris Norris, policy director at the National Residential Landlord Association (NRLA), said increasing taxes on holiday lets would “make no meaningful difference to the supply of long-term rental properties”.
He said the Chancellor’s cut to CGT was “slightly misleading”, arguing that it “will be all but neutralised by the reduction in the annual tax-free allowance”.
The annual tax-free allowance for CGT was cut from £12,000 to £6,000 last year, and will fall again to £3,000 from April.
Mr Norris said: “If you compare the tax on property gains at 28pc in 2022 to those post April – assuming the 24pc rate – you need to make a pretty substantial gain before you’re better off.
“A cut is welcome of course, but it seems like a little bit of smoke and mirrors.”
