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Now even freeholders shouldn’t rent out via Airbnb, says developer

first_imgA development being completed near Chichester in West Sussex is believed to be the first in the UK whose builder has confirmed it includes leasehold and freehold covenants preventing short-let Airbnb-style rentals.Shopwyke Lakes (pictured, right), which includes 80+ properties from £229,000 to £625,000 being developed by CALA Homes, includes freehold houses of up to five bedrooms as well as one and two-bedroom leasehold apartments.All will feature covenants within their freeholds and leases preventing their use for “commercial purposes”.The company says the covenants at the development are specific to it and that the company has no group-wide policy on the use of Airbnb or short-term lets.“Regarding Shopwyke Lakes in Chichester, there is no specific clause which prohibits homeowners renting out their property with Airbnb,” said a CALA spokesperson.“However, in the interests of creating sustainable communities and enjoyable places to live, there is a covenant that the property must be maintained as a private residence and is not to be used for commercial purposes.“Any form of short term holiday let would be viewed as a breach of this covenant.”Covenants that prevent leasehold properties from being used for short-term lets are not uncommon. This was highlighted by a case last year – Nemcova v Fairfield Rents Ltd – in which a freeholder in North London took a leaseholder to court for breaching a ‘private residence’ covenant by renting out her flat via Airbnb. The court found in the freeholder’s favour.Consistent approachThe Negotiator contacted the Home Builders Federation (HBF) to ask if they could comment on whether there was a consistent approach nationally among builders to short-term lets via Airbnb and was told there was not.“The best we can say is that it’s down to individual builders what they insert into freeholds or leaseholds but it’s a very new thing,” said spokesman Steve Turner.This would be a worrying if more builders like CALA Homes were to insert what are in effect ‘no Airbnb’ clauses into their freeholds. This would mean, as is the case for leaseholds, that thousands of house owners may soon be unwittingly breaching their freehold covenants by renting out their homes via Airbnb. Cala Homes Shopwyke Lakes July 25, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Land & New Homes » Now even freeholders shouldn’t rent out via Airbnb, says developer previous nextLand & New HomesNow even freeholders shouldn’t rent out via Airbnb, says developerCALA Homes has inserted unusual terms into both leaseholds and freeholds at its Shopwyke Lakes site.Nigel Lewis25th July 201703,532 Viewslast_img read more

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