London boroughs have expressed concern over shortcomings in government plans for regulating the short-term and holiday lets sector, warning they could worsen the capital’s housing crisis.

In a letter to housing secretary Michael Gove, London Councils highlights the government’s proposal to create a new planning ‘use class’ for properties already used as short-term lets.

London Councils estimates there are at least 43,000 short-term lets in the capital and believes a significant portion of these would qualify for the new planning category.  Automatically transferring short-term lets into this new planning category under permitted development rights risks the overnight loss of thousands of homes from London’s permanent housing stock

London Councils welcomes other aspects of the government’s action on short-term lets, which will introduce much-needed new regulation and oversight of the sector. These include a mandatory national register of properties and continued planning permission requirements for future short-term lets.

Cllr Darren Rodwell, London Councils' Executive Member for Regeneration, Housing and Planning said: “For too many years the short-term lets market has been growing out of control.

“We welcome the government’s move to improve regulation of the sector, but the blanket reclassification of existing short-term lets into a new use class could strip the capital of thousands of homes.

“Boroughs are keen to work with ministers on developing these proposals further and ensuring London is better placed to tackle this challenge.”

“London’s falling birth rate has led to most London boroughs seeing a reduction in the number of pupils beginning primary and secondary education and this has implications for the future of schools across the capital", London Councils Executive Member for Children and Young People Cllr Ian Edwards has warned.

The drop in the child population is creating challenges for London schools, many of whom are already in deficit, and face further budgetary reductions due to fewer pupils on their school roll.

Given the current and forecast drops in demand for both reception and year 7 places, it is essential that local authorities, schools, Multi Academy Trusts, the Dioceses and the DfE work together to ensure that every local area has excellent, financially viable schools that provide a good choice to families.

London Councils recent report, ‘Managing falling school rolls in London’ sets out our analysis of forecasts of demand and school budgets, the challenges in the system and recommendations for what we, local government, and central government can do to support schools.

London Councils has welcomed a new report from the London Chamber of Commerce and Industry (LCCI) that highlights the considerable differences in local economies across the capital.

While London is the powerhouse of the UK economy, generating around 40% of total Treasury tax receipts, the LCCI reports highlights the large disparities in the capital across factors such as employment, labour intensity, productivity levels and manufacturing, Policies need to be tailored to reflect these differences.

London Councils Executive Member for London's Future: Business, Economy and Culture, Mayor Jason Perry said: "The capital is so economically diverse that London-wide data and analysis sometimes hide more than they show."

Read the LCCI report London’s economy: A local authority-level analysis here.