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London Mayor’s concern short-term lettings in London may impact on capital’s housing market (8 March 2017)

Date: 08/03/2017
Duncan Lewis, Housing Solicitors, London Mayor’s concern short-term lettings in London may impact on capital’s housing market

London Mayor Sadiq Khan has called on short-term online letting agents to follow Airbnb’s lead by blocking hosts from renting out homes in the capital for more than 90 days.

In 2016, the London Mayor wrote to the Home Affairs Select Committee, raising concerns that letting out properties in the capital on a short-term basis all year round could lead to a loss of much needed housing stock in London.

Airbnb – which has about 50,000 listings in the capital – announced in December 2016 that it would place a block on its website, so hosts in London could not make more than 90 nights of bookings a year for their entire home without planning permission.

The decision was welcomed by the London Mayor and following discussions with local councils across the capital, Mr Khan says he is keen to find a better way for such letting agents to balance the right of Londoners benefiting from renting out their homes for short periods, with the protection of local residents and the retention of housing for long-term use.

He has now written to six other short-term online letting agents operating in London, urging them to veto long-term bookings. Mr Khan said that he supported Londoners being able to benefit from renting out their homes for short periods – however, he believes the industry will benefit by ensuring customers comply with the law and that, by self-regulating, the short-term online lettings industry can offer an alternative to calls for government intervention.

Mr Khan also urging all operators of short-term letting platforms to work with boroughs across the capital, to help them in undertaking enforcement action where necessary. In his letter, Sadiq Khan, said:

“While Airbnb accounts for a substantial share of the short-term lettings market in London, there are many other operators, such as yours, who occupy the same space. I am keen to see a cross-industry response to this issue, to help local authorities enforce the law. I therefore strongly encourage your company to follow Airbnb’s lead, by ensuring that customers of yours who want to let properties in London on a short-term basis for more than the 90-day annual cumulative limit are restricted from doing so through your website, unless they can prove that they have the relevant planning permission.”

London Assembly member Tom Copley – who recently chaired a roundtable on the issue of short-term letting in London involving Airbnb, London Councils and the Deputy Mayor for Housing and Residential Development – said:

“Local authorities just don’t have the resources they need to enforce the 90-day limit and so it falls to providers to step in. It’s hugely welcome that Airbnb have stuck their heads above the parapet. We need others in the industry to now follow suit. I’m delighted that the Mayor has added his voice to calls for other platforms to follow Airbnb’s example and proactively enforce the 90-day limit.”

Executive Member for housing at London Councils, Sir Steve Bullock, added:

“London Councils welcomed the steps taken by Airbnb to ensure its activities do not have a negative impact on the capital’s already extremely challenging housing situation. Ensuring short-term rentals advertised with all providers are being used in line with planning laws is a vital step in tackling a housing crisis, which impacts on all Londoners – and we welcome this further intervention by the Mayor to ask other companies to follow Airbnb’s example.”

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