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Holiday lets rise in region as domestic tourism continues to soar in wake of pandemic

Almost 100 homes across the Black Country and Staffordshire have been registered as holiday lets as domestic tourism continues to soar after the pandemic.

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Experts have said Covid-19 has led to a boom in staycationing with many seeking to capitalise by converting their second homes into holiday lots in the UK.

Now figures from the Government's Valuation Office Agency, provided by the Altus Group, showed there were 82 homes being used as holiday lets in the area.

The figure, up to the end of May this year, was higher than the 49 holiday lets across the region recorded in mid-March before the onset of the Covid-19 pandemic.

In Wolverhampton, there were 14 holiday lets which was up 10 from 2020. In Dudley, it was six compared to two. In Walsall, it was four compared to zero in 2020.

And elsewhere, Sandwell had seven compared to one. Stafford had 38 compared to 34 and South Staffordshire recorded 13 compared to eight before the pandemic.

The figures cover second homes which are registered as commercial premises – meaning they must be made available for at least 140 days each year– but does not include other second homes used for private holiday lets.

Groups have highlighted the increased pressure of the uptick in tourism on some communities – particularly those in rural and coastal areas – such as increased rent and stretched local services

Across England and Wales, nearly 20,000 new homes have been newly registered as holiday lets over the course of the pandemic – there are now 83,342 nationally.

Altus Group says the national rise may be due to people ‘flipping’ their second homes – converting them into holiday lets to avoid paying council tax.

Owners of holiday lets in England can claim 100 per cent business rates relief if the property has a rateable value of up to £12,000, and will also not have to pay council tax. They do not need to prove the property has actually been let out to claim the tax break.

In January the Government announced it was clamping down on the holiday let tax loophole, telling second homeowners they will have to prove their properties are rented out for a minimum of 70 days a year in order to access small business rates relief.

Generation Rent, a charity that campaigns for fair housing, said there were “countless” stories of tenants being evicted to make way for a holiday let.

The charity's deputy director, Dan Wilson Craw, said: “The popularity of domestic holidays last year, combined with the lack of regulation and tax advantages, has fuelled the appetite for holiday homes and deprived renters of places to live.

“Taking homes out of the residential market prices out people who want to settle down in the place they grew up. That destroys communities and starves local businesses of workers."

Secretary of State for Levelling Up Michael Gove said the Government wanted to encourage “responsible” short-term letting.

“We will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost," he said.

“The action we are taking will create a fairer system, ensuring that second homeowners are contributing their share to the local services they benefit from.”

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