MP for Scarborough and Whitby says licensing scheme ‘only way’ to regulate short-term holiday lets

​“We have to regulate short-term holiday lets because they are forcing residents in places like Whitby out of the towns that they grew up in,” the MP for Scarborough and Whitby, Alison Hume, said.

​It comes as the Government faces mounting pressure to close a loophole that allows second homeowners to avoid paying council tax by reclassifying their properties as holiday lets and moving them into the business rates system.

​Matthew Pennycook, the Housing Minister, recently said the Government was examining the possibility of giving councils additional powers on short-term lets.

​North Yorkshire Council currently has a 100 per cent council tax premium on second homes, which was introduced in 2024 following concerns about a lack of housing for local people.

​The scheme has raised about £10m so far, all of which has been ring-fenced for housing projects.

​At a council meeting on Friday, June 5, Cllr Neil Swannick, who represents Whitby Streonshalh, highlighted concerns about the loophole and asked for a timeline on proposals to give the council additional powers.

​Alison Hume MP told members on the Scarborough and Whitby Area Committee that changes were expected from the autumn onwards.

​“The registration scheme will be going ahead, which will make short-term lets providers aware of their legal responsibilities, particularly around safety,” she said, adding: “That will help raise standards of accommodation and build consumer confidence.

​“It will also help local areas like North Yorkshire outline the impact of short-term let accommodation on housing. That’s coming, and there’ll be an announcement in the next couple of months.”

​Figures published by the National Housing Federation in 2025 revealed there were more than 8,000 second homes in North Yorkshire – the highest number in the Yorkshire and Humber region.

​Many of the second homes in the county are found on the coast and in villages in the Yorkshire Dales.

​The MP for Scarborough and Whitby commented: “It won’t come as any surprise to you to hear that myself and other MPs, such as York MP Rachael Maskell, continue to have conversations with the government about getting a move on.

​“Getting a move on, not only with the licensing scheme, which I believe is the only way that we’ll be able to regulate short-term lets, but with the registration scheme which is coming imminently.”

​She added: “We are reviewing the rules, as you alluded to, that allow second home owners to avoid paying council tax by reclassifying their property as holiday lets and moving them into the business rates system. Members will be aware that under the current rules, owners can qualify for small business rates by letting a property for at least 70 nights of a year and making it available for 140 days.

​“This means that, in many cases, they’re not paying council tax or business rates if they let only one property.