Landlords looking to purchase properties as holiday lets could soon be affected by a controversial decision in St Ives. 80% of people in St Ives voted for a proposal that means new housing developments will not get planning permission granted unless the homes are reserved for full-time residents. Councils in the Lake District, Isle of Wight, Derbyshire and North Devon are now all considering a similar scheme.
Local People Can’t Afford to Buy
The vote comes after it was revealed that 48% of homes in St Ives town centre are second homes or holiday lets. As a result, local people are struggling to afford to buy properties there, particularly in the summer when rents spiral.
“The plan will be monitored in the same way as other residency restrictions,” says Edwina Hannaford, Cornwall’s council’s planning portfolio director.
“Occupiers of homes with a Principal Residence condition will need to provide proof, if requested by Cornwall Council, that they are meeting the condition. Proof could include, for example, that they are included on the local electoral register and registered for and attending local services such as healthcare and schools.”
Landlords Can’t Buy New Homes
If this decision is copied by other councils in popular tourist hot spots, it will affect landlords hoping to invest in new properties to let out to holidaymakers. Holiday cottages and flats in popular tourist areas such as St Ives can easily command rental income of up to £2,000 per week in high season.
However, all is not lost as landlords can still snap up older properties in the town.
