There was more bad news last week for holiday let operators. The ending of certain tax breaks in the budget delivered what Airbnb providers branded a “tax raid” and a “hammer blow”.
Chancellor Jeremy Hunt’s changes for the sector led the Professional Association of Self Caterers UK to forecast 70,000 job losses.
Association chair Alistair Handyside, said: “Increasing the tax burden on holiday properties will drive thousands from this traditional British sector, as the economics of providing holiday accommodation will simply no longer add up.”
He added: “This won’t just be to the detriment of those who currently own and rent accommodation; it will strip from local economies tens of thousands of associated jobs which rely on the sector – such as roles in cleaning, pubs, cafes and tourist destinations.”
Others believe holiday operators will bridge the gap by hiking fees for guests.
However, the Campaign for the Protection of Rural England saw it differently. Roger Mortlock, chief executive, said: “The Government’s plan to scrap tax breaks for short-term lets is a step in the right direction.
“But these changes should be applied to all second homes – a major cause of the rural housing affordability crisis. Airbnb-style short-term lets have led to ghost towns and villages, driving people out of the communities that depend on them.
“A secure and healthy home is a foundation for a decent life and one that many people in rural communities are being denied.”
In a rare shaft of light, the Keswick Tourism Association said that despite the cost-of-living crisis, the area is gearing up for “another strong season” with bookings for the all-important Easter curtain-raiser looking good.
Tourism manager Vanessa Metcalfe told us: “Year to date we have seen an 18 per cent increase in traffic to the Visit Keswick website, with 103,000 people visiting the site to book their accommodation and plan their visit. While advance bookings are looking positive, we do expect the trend of “last minute” bookings to continue particularly in the serviced accommodation sector.
“We are looking forward to another year of supporting and promoting our member businesses and helping our visitors enjoy their time in Keswick.
The Country Land and Business Owners’ Association was also unhappy with the Chancellor’s decisions.
It said: “Rather than helping the tourism sector by permanently reducing VAT to make rates internationally competitive, the Chancellor is squeezing holiday let owners and stifling businesses that create jobs and support the rural economy.
“By converting unused or underutilised properties, that may not be suitable as homes in the private rented sector, into high-quality holiday accommodation, property owners contribute to the local community’s economic vitality.
“Targeting them will not help solve the housing crisis.
“The current tax rules for Furnished Holiday Lets provide a crucial support mechanism, strengthening the resilience and viability of many farms and rural businesses that in turn enables them to invest in their work looking after the environment and feeding the nation. Abolishing the tax relief shows a disregard for small rural businesses that often have narrow margins and face a constant need to reinvest.”
