Airbnb hosts will need to get planning permission to turn their properties into short-term lets in a bid to crack down on the impact of holiday rentals.
Levelling up secretary Michael Gove says the problem has pushed local people out of "cherished towns and villages".
Ministers are considering whether to impose new limits on properties. They will now decide if those rented out for more than either 30, 60 or 90 days-a-year will be considered as holiday lets.
It is hoped the measures would stop people buying second homes with the primary intention of using them for short-term lets. Last year, KentOnline reported how a number of new-builds in Kent have been snapped up by buy-to-let investors and rented out for as much as £2,100-a-month
The changes announced today would see a new planning use class created for lets not used as a sole or main home but will only apply to new hosts and not existing second homes already used as holiday lets.
Local authorities would be able to opt out of the controls but councils in tourist hot spots are expected to use them to stop residents being pushed out of holiday towns.
Residents have long-raised concerns about one town in Kent being jam-packed with second homes and holiday lets - with neighbours complaining about the lack of community.
Whitstable is ranked as the eighth most popular town in the UK for second-home owners, with Albert Street thought to have among the highest concentration.
But last year, long-term residents in the town told KentOnline of their concerns around second homes and holiday homes.
Over the past 22 years, 74-year-old resident Shirley O'Neill has watched as dozens of homes in Albert Street have been snapped up by mostly absent out-of-towners, or transformed into holiday lets and the prime residential road - just off the town centre's busy Harbour Street - is jam-packed with second homes and Airbnbs.
An online survey, carried out by the Canterbury Green Party, revealed 87.6% of residents had concerns about short-term holiday lets or Airbnbs in Whitstable, out of almost 170 responses.
Those who responded reported concern about the impact on their mental health, according to the party.
"Tourism brings many benefits to our economy but in too many communities we have seen local people pushed out of cherished towns, cities and villages by huge numbers of short-term lets..."
But it was also revealed 66.2% of residents agree there are "positive impacts" of Airbnbs for the town, out of 142 responses and this message was supported by one councillor, who owns an Airbnb in Whitstable.
Mr Gove has now published a consultation proposing the introduction of planning permission for an existing home to be used as an Airbnb or other short-term let.
Last month he expressed concerns about the impact of short-term letting on local areas, promising to make changes aimed at restricting “the way that homes can be turned into Airbnbs”, amid concerns about problems with holiday lets preventing younger workers from living and finding a job near to home.
This comes weeks after the Prime Minister promised he would look at preventing Airbnbs being used as party houses and hubs of anti-social behaviour.
"Tourism brings many benefits to our economy but in too many communities we have seen local people pushed out of cherished towns, cities and villages by huge numbers of short-term lets," Mr Gove said in the Daily Mail.
"I’m determined that we ensure more people have access to local homes at affordable prices and that we prioritise families desperate to rent or buy a home of their own close to where they work."
The changes are only aimed at Airbnbs meaning hotels, hostels or B&Bs would not be affected although ministers have not rules out a future crackdown on all properties.
Last month, a new map revealed how a staycation boom since the pandemic has seen the number of short-term holiday lets swell in some of England's most popular tourist hotspots.
Coronavirus and subsequent travel restrictions for foreign trips led to a spike in demand for breaks closer to home and new data confirmed the huge growth the UK holiday rental market has seen in just three years.
Kent is among the places to have witnessed a surge in the number of rented holiday lets available in the county - with a leap of 22% between 2019 and 2022.