Some 10% of landlords are considering switching to short-term lets, ARLA Propertymark’s Impact of Short-Term Lets report has found.
Cities say short-term holiday lettings market is contributing to soaring long-term rents
Glasgow has taken action against the rise in the number of flats in residential blocks being let out on a short term basis, including Airbnb.
Boom in unregulated short-term rentals is fuelled in part by unscrupulous businesses posing as private owners
The government has suggested that it is at least considering changing the terms of its Rent A Room system which could mean ‘hosts’ letting via Airbnb and similar platforms could end up paying more tax than they do now - if they pay any at all.
Airbnb’s decision to enforce the London-specific legislation which limits hosts to letting their properties for no more than 90 nights a year may cost it $US400m, equivalent to £325m.
AirBnB is to block hosts in London from renting out homes for more than 90 days a year without official consent.
Under the proposals, hosts renting out entire properties will be notified as they approach the limit and given details of where to seek an extension.
A quarter of London homes listed on Airbnb were rented for more than 90 days last year, many illegally and in breach of an act intended to stop landlords turning badly needed housing into unofficial hotels. The booming homesharing website admitted on Thursday that 4,938 of its “entire home” London listings – 23% of the total – were let out for for three months or more, despite a law requiring anyone doing so to apply for planning permission.
A mortgage lender has added a clause to its home loans that allows borrowers to let out their property through Airbnb without asking its permission.
Generally lenders expect customers to ask permission before offering their homes for short-term lets, and some will charge a fee to give consent. A survey by the Guardian in April found some refused short-term lets completely, while others asked up to £295 in consent fees.
Metro Bank said its mortgage customers could now let their homes on Airbnb or similar sites for up to 90 days a year without contacting it for prior approval.
Concerns have been raised at government level over the illegal use of Airbnb by private landlords.
Airbnb is meant to be for short lets of no more than 90 days in a year, but a number of landlords are using the site to advertise much longer lets. Assured Shorthold Tenancies, generally for six or 12 months, carry with them legal obligations.
Airbnb has hit back at a claim by the Residential Landlords Association that lets promoted by the firm effectively worsened London’s housing crisis.
Landlords are taking their flats off the open market, and advertising them instead on the holiday let website Airbnb, warns an industry report.
The Residential Landlords Association (RLA) claims the trend will mean fewer homes for rent, exacerbating the housing shortage.
The Airbnb phenomenon that is soaring in popularity is a growing issue for private sector landlords as tenants embrace the trend without checking if their tenancy allows them to do so.
According to the UK’s tenant eviction firm Landlord Action the number of cases where tenants have sub-let properties without their landlord’s permission has trebled.
It point out that aside from breach of tenancy agreement and additional wear and tear to the property, landlords are left exposed to being in breach of their mortgage terms and buildings insurance.
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