Short-term lets, such as those offered by Airbnb and other holiday lettings agencies, are increasingly affecting the property market, in particular in coastal and other popular tourist areas.
Airbnb gives property owners the opportunity to let out their home or rental property to holiday makers and those looking for somewhere to stay in a city. While it enables tourists to stay in their chosen destination relatively inexpensively and gives property owners a stream of income, the set-up can cause difficulties for others, including those living nearby as well as people who want to rent a home long-term and owners of hotels and bed-and-breakfast establishments.
Holiday properties can be particularly problematic in coastal towns and villages and picturesque areas. In some cases, the percentage of holiday homes is so large that there are very few people living there out of season. This means that small businesses, such as pubs and local shops, cannot survive, so they close down. Ironically, many second home owners choose villages that have a good sense of community, which is destroyed as more and more holiday homes are purchased there.
The effect on the rental market
For cities, in particular London, Airbnb has caused a reduction in the number of properties available to rent for those working there. The number of Airbnb listings has grown substantially, with a large number of landlords moving to this type of let. As rules surrounding long-term rentals are tightened, Airbnb may become even more attractive.
Research has also found that Airbnb lettings can be substantially more lucrative. One study found that Airbnb lets in the Lower East Side of Manhattan made an average of two to three times the median rent made from long-term rentals.
A study carried out in Los Angeles found that in neighbourhoods with high concentrations of Airbnb lets, rents increase one-third more quickly than the city average.
Major cities are taking steps to limit the number of nights a property can be let on a short-term basis. In London, short-term rentals should not exceed 90 days in any one year.
Objections to short term lets
Globally, several issues have been voiced, including:
- Local residents being outpriced
- Tenants being evicted
- Lack of local residents and a high level of visitors on holiday changing the character of an area
- Noisy tenants and anti-social behaviour
- Disruption to the neighbourhood
- Parking issues
- Lack of rules
- No licensing
- Not adequately taxed
- Hotels and other hospitality premises suffering
The effect on coast areas of England and Wales
The number of Airbnb rentals on the England and Wales coast where the whole property is available to let increased by 56% between 2019 and 2022 according to The Guardian. This trend has been accused of killing communities.
In St Andrews, a quarter of home in the Scores area were Airbnbs in 2022, an 80% increase on 2019. In Woolacombe, Georgeham and Croyde in North Devon one in four properties were listed, while in Saltburn one in three homes was available on Airbnb and in St Ives and Halsetown it was one in five homes.
An estimated one in every 67 coastal homes is now an Airbnb letting, with housing costs for local high.
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