News21.07.23by Stephen DelahuntyThe London mayor has told ministers that the growth in short-term lets across the capital needs greater scrutiny or risks exacerbating the housing crisis by pushing up rents.In July 2023, there were 81,792 listings in London on Airbnb (picture: Alamy)SharelinesSadiq Khan is calling for the implementation of a licensing system to allow local authorities to limit the numbers of licenses issued in their area #UKhousing Sadiq Khan is calling on the government to help protect London’s housing supply at a time when more than 80,000 properties are listed for short-term let (STL) in the capital.
In July 2023, there were 81,792 listings in London on Airbnb. Of these, 50,401 are for entire properties, meaning at least one in every 74 homes in the capital is available for short-term let.
While STLs are a key part of the tourism industry in London, Mr Khan believes that a lack of sufficient regulation or resources for boroughs to monitor the situation is making it unclear how many are being let for longer than the rules permit.
Currently the rules allow homeowners to rent out their homes for 90 days a year. For this reason, Mr Khan is calling for the implementation of a licensing system to allow local authorities to limit the numbers of licenses issued in their area.
This would avoid entire streets or blocks being turned over exclusively to short-term lets after a block in Westminster was found earlier this year with more than 90% of its 118 units available on short-term letting platforms.
Those properties let more than 90 days a year would be subject to business rates and charging for licenses at a time when budgets have been “repeatedly cut in recent years”, Mr Khan explained.
The mayor is also asking ministers to back his call for new legislation to require short-term let platforms to share data with local and national government, to help decision-makers better understand how the sector is impacting housing supply and local residents.
Mr Khan said: “I am doing all I can to tackle the housing crisis in London, building a record number of the genuinely affordable, high-quality homes that Londoners deserve.
“But these efforts will continue to be hampered by the lack of regulation in the short-term letting market. We need transparency about how many properties are being rented out for longer than the rules permit, and accountability to local authorities and residents.” The mayor’s concern comes at a time when the government is consulting on the future of STL. But Mr Khan has criticised proposals to control the sector using planning powers or a voluntary register “for not going far enough”.
Claire Colomb, professor of urban studies and planning at University College London, said: “At present, London is one of the least regulated European cities when it comes to STLs.
“The most effective way to control STLs is to give local authorities the power to identify and control the use of a property as STL, which can be done in various ways. In London, this would be best achieved with a licensing scheme.”
Professor Colomb said it is time that digital platforms are required by law to display the license or authorisation number on each listing, and to share listing data with local authorities so that compliance can be monitored.
The Department for Levelling Up, Housing and Communities has been contacted for a response.
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