London council wins appeal against illegal C1 use case

UK: The Planning Inspectorate has dismissed an appeal against the unauthorised use of 254-256 and 258 Belsize Road, north London, as serviced apartments for short-term lets.

The appellants argued that the use of accommodation at the Sanctum Belsize Road building was C3 residential not exceeding the 90-day allowance. Prior approval had previously been granted to change the building from office to residential accommodation. 

However, the Inspector agreed with the evidence presented by the council in that the accommodation was not residential flats in C3 use. It found that the use is the sui generis use of the property for serviced apartments for short-term lets. 

Evidence included the advertisement of the apartments on OTAs (Booking, Expedia), through agents (SITU, London Serviced Apartments), and via the businesses’ own website. 

Features consistent with short-term lets also included hotel-style key cards to operate door access and lighting; no individual post boxes or doorbells on the apartment doors; and two interconnecting apartments designed to facilitate independent or joint use. 

The Inspectorate therefore confirmed that the “overall character of the use is distinct from Class C3” and that the “collective operation of multiple units in the building” contributed to this decision. 

Councillor Adam Harrison, cabinet member for planning and a sustainable Camden, said: “This decision outlines the challenges that local authorities like Camden face in tackling unauthorised short-term lets. It sets a clear guide for us and others across London to tackle similar unauthorised short-term letting operations. This decision should send a strong message to other landlords and building owners. You need to comply with planning rules, or we will take action. At a time when we are experiencing a shortage of suitable affordable housing for our residents in the borough, we are acting to tackle this issue.”

He added: “In Camden, there are currently approximately 6,000 properties solely being used for short-term letting and London Councils estimate that there are a staggering 43,000 homes in the capital being used for this purpose instead of providing permanent homes. We do support homeowners being able to rent out their homes for limited times during the year to make additional income, however our experience is that the vast majority of short-term lets are provided by professional organisations who rent multiple properties as short-term lets all year round.”

ASAP CEO James Foice said: “As the official trade body representing only professional operators committed to strict codes of conduct, duty of care, and transparency, we acknowledge this restriction. However, the industry has developed organically, and inflexible regulations alone will neither resolve the housing crisis nor prevent the risk of driving illegitimate operations underground. We stand ready to engage in further discussions with government ministers to develop a balanced solution – one that safeguards housing requirements, helps grow the economy and the sustain integrity of this part of the accommodation industry.”

Andy Fenner, CEO, STAA said: “Responsible operators already comply with regulations, and a heavy-handed approach could have unintended consequences, such as reducing the supply of high-quality, professionally managed accommodation that supports tourism and local economies. The STAA is calling for the introduction of a national register before any further policy decisions are made, ensuring that changes are based on facts rather than assumptions. The jobs and income generated by short-term rentals must be properly considered in any regulatory approach to avoid unintended economic harm.”

The operator of the building, Sanctum Apartments, also has properties in Maida Vale and Belsize Park.