When is a short-term let not a short-term let? The answer is far from straightforward – at least in Northern Ireland.

 

Short-term lets have become a prominent part of the urban housing and tourism landscape. However, their growing prevalence has raised concerns about their impact on housing availability and community cohesion and has led to calls for greater regulation.

 

Belfast City Council policy on short-term lets

 

Belfast City Council’s Local Development Plan Strategy  introduced two relevant policies: HOU3, which seeks to retain the existing housing stock, and HOU13, which sets out specific criteria for short-term lets. Notably, Policy HOU13(f) states that where a planning permission to change from a permanent residential use to short-term let is proposed, part of the property must be retained as permanent residential housing.

The plan strategy defines a short-term let as “where a property is rented to the same person(s) for not longer than 90 consecutive nights”.

 

The appeal: Interpreting permanent residential use

 

A recent Planning Appeals Commission (PAC) decision (D’Urbano 2025/A0017) has clarified the following questions in respect of short-term let planning consents:

• What is permanent residential use for the purposes of HOU13?
• Is it necessary for the permanent residential use to be a primary residence – ie, not a second home – to meet the policy test?

 

The case concerned a retrospective planning application for the change of use of one bedroom in a three-bedroom apartment from permanent residential use to short-term let. Permission was granted, subject to condition 2, which stated: “The short-term let use hereby permitted may not operate unless the bedrooms as annotated on Drawing 02B are occupied by a person as their primary, permanent residence. For the avoidance of doubt the bedrooms shall not be occupied as a second home or short term let accommodation…”

The council argued that these terms were necessary to ensure compliance with policies HOU3 and HOU13. Without the “primary residence” requirement or exclusion of “second homes,” it was claimed that properties could be rented for 91 nights or more for a nominal sum – beyond the short-term let definition but still not in line with tenancy legislation, which generally requires a minimum six-month term.

The PAC ultimately rejected the council’s arguments, stating: “A short-term let is defined as being property rented for 90 nights or less. Any rental agreement that exceeds this, even by one night, would be considered… permanent residential housing.”

Therefore, where part of the property is let for a period of 91 days or more to a single occupant or occupants, it will fulfil the policy requirement of retaining part of the property in permanent residential use, even if it is occupied by a person as a second home.

Furthermore, the PAC confirmed that the level of rental incomes, are not administered by planning policy and therefore are not material considerations.

 

Has there been a change of use? 

 

In D’Urbano’s appeal there was no dispute that there had been a change of use. However, in many cases it is necessary to ask whether there has in fact been a change in use requiring planning permission. Not all short-term lets will require planning permission.

Northern Ireland has no specific use class for short-term lets. By contrast, Wales introduced use class C6 specifically for short-term holiday lets, defining a short-term let as a letting not longer than 31 days for each period of occupation. In London it is possible to short-term let a property for up 90 days in total per year without the need for planning permission.

In Northern Ireland, as in many other parts of the UK, we do not have a ‘bright line’ test for when a short-term let becomes a ‘material’ change of use requiring planning permission. Instead, it requires a careful analysis of the character and intensity of the use applying the principles in Sage v Secretary of State for Housing, Communities and Local Government [2021] EWHC 2885 (Admin) where “the crucial test is whether there has been a change in the character of the use”.

A recent enforcement appeal, Farrell’s Appeal (2024/E0040), concerned a nine-bedroom short-term let operation over three units used solely for tourism. Although planning permission was granted, the PAC’s approach to whether there had in fact been a material change of use is of interest.

The commissioner conducted an analysis of the specific characteristics of the holiday let use, consistent with Moore v Secretary of State for the Environment, Transport and the Regions [2013] JPL 192 and compared those characteristics against the characteristics of use as a private dwelling.

The PAC acknowledged that use remained “residential in character,” but found that the scale, frequency and intensity amounted to a material change in use. In reaching this conclusion, they considered factors such as group size, frequency of use, number of vehicles and disturbance.  This appeal demonstrates that the PAC are prepared to engage in a detailed analysis of the actual characteristics of the use before determining that planning permission is required.

A note of caution for practitioners can be found in appeal reference 2023/E0003-5, where the PAC rejected the appellant’s arguments that no change of use had taken place, as a previous planning application for short-term let use was deemed as acceptance that a change of use had taken place. That appeal underscores that care should be taken before submitting a change of use application, particularly in borderline cases.

 

In conclusion: Take advice before proceeding…

 

The complexity of this area of planning is reflected in the number of live enforcement cases and planning appeals – nearly one third of Belfast City Council’s enforcement case load relates to short-term lets.  It is therefore likely that we will see a significant volume of appeals over the coming months.

In a policy area defined by nuance and interpretation, owners of short-term lets should seek professional advice to navigate uncertain ground.

 

Article first published in The Planner

 

For legal guidance and advice on how short-term lets and planning may apply to your business, please contact Maria O’Loan or another member of our Planning and Environment team.

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.