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Darren Rodwell is an executive member at London Councils, housing spokesperson at the LGA, and leader of Barking & Dagenham Council
...moreThe government must act on out-of-control growth of Airbnb-style lets
Short-term lets are making London’s chronic housing crisis much worse, but we lag behind other countries in terms of regulation. It is time for change, writes Darren Rodwell
London’s booming market in short-term lets is a very 21st century challenge.
Our recent research found more than 70,000 listings for London homes on six of the leading online letting platforms, including Airbnb.
This is all part of the ‘sharing economy’ – and undoubtedly offers benefits to tourists looking for good-value accommodation and London homeowners wanting to generate income from their property.
But this fast-growing sector has serious downsides – particularly the impact on London housing pressures and loss of housing stock.
It’s ridiculous that more than 70,000 London homes are being used for short-term lets when we’re dealing with the most severe homelessness crisis in the country and a chronic shortage of affordable housing.
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There are 57,000 London households living in temporary accommodation, including 88,000 children. A growing portion of homeless Londoners were tenants in the private rental sector who struggled with rent payments and couldn’t find anywhere affordable to live.
We’re seeing more and more cases of leases being cancelled and tenants evicted so that profit-maximising landlords can instead advertise their properties on short-term letting sites.
“As well as problems with waste management and loss of neighbourliness, there are reports of short-term lets being turned into ‘party houses’ and used for sex work and drug dealing. Yet local authorities lack the regulatory powers and resources to address the situation”
London boroughs have also received a growing number of complaints from residents about the proliferation of short-term lets in their communities. As well as problems with waste management and loss of neighbourliness, there are reports of short-term lets being turned into ‘party houses’ and used for sex work and drug dealing.
Yet local authorities lack the regulatory powers and resources to address the situation.
Thanks to the Deregulation Act 2015, property owners no longer need planning permission before letting out their property for short-term lets. Although permission is still required when homeowners let for more than 90 nights per year, monitoring letting numbers and taking enforcement action is proving an impossible task for hard-pressed councils.
Securing evidence for a prosecution requires continual monitoring to show the 90-night rule is being breached. Boroughs simply don’t have the resources to undertake this.
While we can point to records of residents’ complaints, it’s extremely rare to have the evidence necessary for a successful prosecution.
This approach isn’t working. We need improved regulation that strikes a better balance between the benefits for customers and law-abiding property owners alongside the needs of permanent residents and the wider community.
“The Scottish government plans to introduce such changes next year. Other major cities around the world – like Paris and Barcelona – have already implemented tougher regulation. London is lagging behind”
London Councils is therefore calling on the government to legislate for a mandatory registration scheme and stronger powers for local authorities. This would enable us to protect residents and take firmer action against the reckless landlords giving short-term lets such a bad reputation.
The Scottish government plans to introduce such changes next year. Other major cities around the world – like Paris and Barcelona – have already implemented tougher regulation. London is lagging behind.
We’re keen to work with government ministers on this agenda. The exponential growth in London short-term lets is an important example of the pros and cons brought about through online platforms and the sharing economy.
No one wants to stifle innovation, but we must shape the market in a way that safeguards residents’ interests and helps – rather than hinders – our commitment to meeting London’s housing needs.
Darren Rodwell, executive member for housing and planning, London Councils
