The Association of Serviced Apartment Providers (ASAP) has written to Peers planning to debate the controversial Clause 34 (the so-called 90-day rule) of the Government’s Deregulation Bill when it goes before Committee in the House of Lords on 21 October.

James Foice, managing director of ASAP, explained that Clause 34 of the Bill seeks to amend Section 25 of the Greater London Council (General Powers) Acts 1973 and 1983 which requires London residential property owners/tenants to seek planning approval prior to repurposing residential property to sell accommodations on a night-by-night basis.  He said: “We are telling Peers that ASAP supports Government plans to relax the 90-day rule, which has been in place without change for over 30 years, because it is out-of-date, and the short-term rental sector in London has changed beyond recognition.”

But he went on to caution the Government against “throwing the baby out with the bathwater,” adding:  “The Government must also ensure that safeguards – for example compliance, health and safety and insurance – are in place to give customers the protection they need.”

Foice said that ASAP had put these points to DCLG* officials responsible for the Bill during a recent meeting. “It’s clear that political imperatives are driving Government action, most especially the need for more housing in London. Housing in the capital is a political hot potato, and the Bill has been framed to ensure an outcome whereby there is more housing available for purchase.”

Foice cited the ASAP quality assessment initiative as a means of ensuring customers know exactly what it is they are buying. “One potential risk of deregulation is that customers cannot guarantee that they’ll get what they see on a website, not just facilities and furniture, but also health and safety and insurance. Our QA initiative provides the protection customers need and require when they book a serviced apartment.”

According to Foice, seismic changes in the accommodation industry – in particular the rise of sharing economy companies such as AirBnB – are driven by changing customer demand and the growth of digital technology.

“We cannot resist these changes and go back to the past, but instead embrace them and offer visitors to London the widest possible range of accommodation choices.”  He said that serviced apartments were one of the fastest growing sectors within the hospitality industry, not just among corporates, but increasingly among families and tourists looking for alternatives to hotels. “Our sector is worth £500m of annual revenue, the same size as the entire sharing economy in the UK, and we are expecting serviced apartment stock in London to reach 14,000 units by this time next year.”

We strongly welcome Government plans to reform the rules, but politicians need to carefully think through the consequences, and make sure customers get the protection they need.”

* Department of Communities and Local Government

About ASAP:

ASAP is the trade association for the UK serviced apartment sector. Our 76 members own and operate over 14,000 properties throughout the UK and Ireland, in every major city. Our membership also includes a number of serviced apartment agencies.  Our industry generates annual revenues of £500m, and we sell three million accommodation nights each year. We provide employment to many thousands of people and our staffing costs are in the region of £70million, many of which are low paid jobs.  Founded in 2002, our members range from large international companies to small independent operators so represent the full cross-section of the industry in the UK.

Source: Press Release

Subject: The Association of Serviced Apartment Providers (ASAP) urges Government to protect customers following short term let reforms