House prices in the Lake District are expected to fall due to the government’s plan to tighten regulations around holiday lets. This initiative is part of a broader strategy to ensure that homes remain available for local residents to buy or rent, rather than serving merely as short-term vacation spots. The English planning authorities, now including national park authorities, will soon have the power to require planning permission for new holiday lets, a rule that previously did not exist.

Reaction to Changes

Andrew Smith, the Head of Development Management at the Lake District National Park Authority, supports the new policy. Talking to the BBC, he stated that the anticipated decline in house prices is an intended consequence of these regulations. “Bluntly, that’s part of the point,” he remarked. Smith highlighted the pressing need for more permanent residences for locals who wish to live and work in the area. The national park authority is keen to apply these new powers as soon as they are available nationwide.

Lessons from Wales

The Lake District might look to Wales for insights, where similar regulatory changes have already been implemented. Last year, the Welsh government granted local authorities the ability to demand planning permission for holiday lets and second homes. In Abersoch, a village where nearly half the properties are used for such purposes, estate agents reported a staggering 24% drop in house values. Suzie Hookes, a local business owner and resident, voiced her distress, calling the regulations “criminal” for potentially diminishing the value of her property and impacting her financial stability.

Additional Fiscal Measures

Further intensifying the housing policy landscape, councils in Westmorland & Furness and Cumberland have decided to double the council tax on second homes and furnished properties that are unoccupied, starting from next April. This measure aims to discourage the underuse of housing and ensure properties are available for locals rather than remaining empty or underutilised.

Community Responses

The community’s reaction is mixed. Conservation worker Katherine Andrews, who grew up in the Lake District, welcomed the proposals, expressing relief that they might help young locals like her climb the property ladder. On the contrary, Ann, a second homeowner in Wales, described the council tax increase as punitive and worries that it may force people like her to sell properties that locals may not be able to afford due to the mismatch between property prices and local wages.

Looking Ahead

The Department for Levelling Up, Housing & Communities stated that these changes are a direct response to the appeals from local communities and their representatives for greater control over the housing market, particularly in regions overwhelmed by short-term lets. These new regulations aim to balance the needs of the local residents with the demands of the tourism industry, ensuring sustainable community development and housing availability.