Proposed C5 planning class and registration schemes likely to impact wedding venues in England
Xenia Venues
Acquiring and developing exceptional wedding venues across the south of England.
Online data shows there has been an increased demand for honeymoon suites and onsite guest accommodation, particularly at venues targeting exclusive use weddings over recent years. This has led to many venue owners adding yurts, shepherd huts and cabins, or in some cases renting out a local cottage or their own home, to service demand.?
Xenia Venues are committed to guest safety and to leading industry standards so we support the government's proposals to regulate the use of accommodation for weddings.
The current situation:
It means that new levelling-up regulations aimed at AirBnB-type properties are likely to be very relevant.
There are two schemes currently under consideration, one looking at introducing a new C5 planning class and one calling for the registration of all guest accommodation, potentially including accommodation in temporary structures such as yurts.
A consultation period runs from 12th April 2023 to 7th June 2023 with a separate questionnaire for each scheme. Neither questionnaire appears to consider the specific nature of wedding venues, so it is important for wedding venues to speak up now and ensure any changes have a positive impact.
The two schemes in more detail:
Proposed changes to introduce a new C5 planning class
These changes are most likely to impact venue owners who have moved out in order to rent out the entire house for guests, typically the farmhouse or country house at the heart of the venue, or a residential property nearby.? The changes are only relevant to properties currently classed as C3.
The current planning position
Land and buildings all fall into planning categories known as 'Use Classes'.? ‘Homes’ typically fall within the use class of ‘C3 Dwellinghouses’. There is currently no distinction between whether the house is used as a main home, for commercial use, or is rented out for personal or commercial use.?
To allow for greater local control the government is proposing to introduce a new use class for short term lets in England.?
This could also allow for a more consistent approach when it comes to business rates or council tax for second homes, income tax and VAT.
Re-classification of existing properties is not considered development, so property owners meeting the definition set out by the government would not require planning permission. Where the use class is unclear because of individual circumstances, owners can apply for a lawful development certificate to formally check and confirm they are acting within the law.
The new proposals
A new planning class: "C5 Short Term Let” would be defined as "Use of a dwellinghouse that is not a sole or main residence for temporary sleeping accommodation for the purpose of holiday, leisure, recreation, business or other travel."
New permitted development rights could allow properties currently classed as C3 to change to C5, and for C5 properties to change to C3, in most areas.?
In areas where the local planning authority have identified an imbalance in housing, and a need for either more residential homes or more temporary accommodation, an Article 4 direction would remove this automatic right under permitted development and homeowners would need to apply for permission.
As part of the proposal, venue owners who only occasionally offer their main residence for temporary guest accommodation can retain their C3 planning use, but rent out accommodation for a maximum number of nights per year. The government is seeking feedback on the appropriate limit to set, but it is expected to be 30, 60 or 90 nights per year. For many wedding venues this will be sufficient, so venues in more sensitive areas where planning departments could oppose an application should still be able to offer and charge for accommodation for their couples and wedding guests, albeit for a limited number of nights.?
In London, where there is already a 90-day guest rental limit for residential properties, this 90-day limit would still apply even if the property changed to C5.?
The proposals would allow the change of use from a C3 dwellinghouse to a C5 short term let, without the need for a planning application or the payment of any fees, where there is no local issue.
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There would be a similar right to change back from a C5 (short term let) to a C3 (dwellinghouse) to allow short term let properties to be sold as residential properties in the future.??
Where there is evidence of a local issue, the permitted development right may be removed by making an Article 4 direction, which would apply to the smallest geographical area possible.?
To minimise planning requirements where there is no local issue, it is proposed that the rights would not be subject to any limitations or conditions. This is particularly relevant to wedding venues as it means there would be no size limits or exclusions, and the rights would still apply to listed buildings, and those in National Parks and Areas of Outstanding Natural Beauty.?
We feel that this change would help formalise the planning position and give venues the confidence in offering on-site guest accommodation without the costs of applying for planning consent.?
Proposed registration scheme for short term rental properties
The government is proposing a new registration scheme aimed at levelling up safety standards and providing a means to address any negative impacts on local communities, where properties are used for short-term lets.?
The scheme is not intended for hotels, guesthouses, B&Bs or professional self-catering accommodation providers as they are already registered and regulated.?
However, it would ensure that all providers of short-term accommodation will need to comply with similar safety and quality standards to those already operating within existing regulation and quality assurance schemes.
These could extend to areas such as:?
The scheme is expected to be “light touch” and would be introduced through secondary legislation and would only apply in England. There are already short-term let licensing schemes in Scotland and Northern Ireland, and Wales is in the process of introducing a statutory licensing scheme.
The government is considering whether the scheme should extend to include temporary accommodation such as shepherd huts, treehouses, glamping and yurts.
“Short-term rental property” means:
(a) a dwelling, or part of a dwelling, which is provided by a person (“the host”) to another person (“the guest”)
(i) for use by the guest as accommodation other than the guest’s only or principal residence,
(ii) in return for payment (whether or not by the guest), and
(iii) in the course of a trade or business carried on by the host,
(b) any dwelling or premises, or part of a dwelling or premises, not falling within paragraph (a) which is specified for the purposes of this paragraph.
Our understanding is that property owners would need to register each unit of accommodation used for short term rental, agree to adhere to appropriate safety standards and pay a registration fee to cover the costs of administering the scheme.?
They will be issued with a registration number which may become a requirement for online platforms such as AirBnB, or advertising the property online.
It’s unclear whether the scheme would be managed by local councils or an organisation such as the English Tourist Board, and whether quality assurance scores similar to the food hygiene marks or hotel star ratings could form part of the scheme.
In our opinion, the majority of wedding venues already operate their guest accommodation to the safety and quality standards that are being proposed, and registration would help formalise their position.?