HMRC Investigation Into Airbnb Landlords May Be Last Straw For Short-Term Letting Growth

The upcoming investigation by HM Revenue and Customs (HMRC) into Airbnb landlords could result in a significant exodus of landlords from the short term letting sector, property management firm Apropos has warned. Airbnb has passed on the financial transactions of 225,000 people who rent out homes and rooms through its site, which could potentially result in landlords having to pay substantial bills, particularly those who operated multiple properties using the site. This investigation by HMRC into the income earned by these property owners between 2017-2018 and 2018-2019 means that many more landlords will feel that the short-term letting market is not for them. Read more on the Property Wire website.

https://www.propertywire.com/news/house-builder-progresses-works-on-new-15m-housing-development-in-west-oxfordshire/ 

Tenants Hurt By Growth In Short Term Lets

Tenants, including many with children, are finding it harder to access long term homes to rent as Government policy is driving landlords to move into the holiday lettings market, says the leading landlords’ organisation. The warning comes as figures show that Airbnb accommodation now accounts for one listing for every four properties in some parts of the country. Nearly half a million properties could be left unavailable for longer-term rent as more landlords exit the market in favour of short-term lettings. One of the main reasons for this is the change in the taxation of landlords which is driving many landlords out of the long-term sector. Read more on the RLA website.

https://news.rla.org.uk/tenants-hurt-by-growth-in-short-term-lets/

Airbnb Host Fined £100,000 For Letting Council Flat

An Airbnb host who rented out his central London council flat to tourists has been fined £100,000 and evicted. Council tenant Toby Harman, 37, created the fake identity "Lara" on Airbnb to rent out his studio apartment. The flat, in Victoria, had been advertised since 2013 and received more than 300 reviews, Westminster City Council said. Anti-fraud software had found Harman's first name in reviews and connected the listing to him. Harman's bank statements showed he had been receiving payments from Airbnb for a number of years. Read more on the BBC website.

https://www.bbc.co.uk/news/technology-49149983

Minority Of Landlords Offering Informal Short-Term Lets

Only three percent of landlords are currently engaged in the informal short-term lettings market, according to research by the NLA.  Short-term lets, which range in length from one night up to around six months, have increased in popularity in recent years following the success of companies such as Airbnb. Landlords can generate significant income from letting their properties in this way.  However, this can breach a landlord’s mortgage terms and invalidate their existing insurance policy, so it’s vital for them to be aware of the problems it can present.   Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/minority-landlords-offering-informal-short-term-lets

Pilot Licensing System For Airbnb-Style Short Lets

Kensington & Chelsea council says it is preparing a new licensing system after receiving 91 complaints in the last two years of homeowners renting out their property on short lets for more than the current maximum of 90 days a year. The council says that under the current rules it has only been able to issue 11 people with enforcement notices ordering them to desist. In advance of Government action the council will consider a pilot licensing scheme to protect key areas. Read more on the Evening Standard website.

https://www.homesandproperty.co.uk/property-news/kensington-chelsea-to-curb-antisocial-behaviour-with-pilot-licensing-system-for-airbnbstyle-short-a117141.html

MP Warns Of Housing Strain Caused By Holiday Lets

Illegal sub-letters and property magnates are taking advantage of Airbnb and similar-style sites to rake in tax-free cash, an MP says. Labour's Karen Buck said renting out properties for short holiday lets can produce up to three times the income of more traditional flat rentals. Growth in the industry is also contributing to a loss of residential accommodation, she told the Commons. She wants the 90-day limit for renting out homes each year to be enforced. Ms Buck says the sharing phenomenon is putting a strain on housing stock, neighbours and cash-strapped councils that are having to deal with anti-social behaviour arising from noise and waste issues, over-crowding and a whole range of other forms of disturbance. Read more on the BBC website.

Rent A Room Allowance Review Hidden In Budget Small Print

The government will review the way rent a room relief operates – in what appears to be a bid to tackle the rise of short term lettings. People renting out rooms in their homes to lodgers can currently earn £7,500 tax free under the scheme. However people offering short terms lets through sites such as Airbnb can also take advantage of the relief. RLA research shows there are more than 23,000 rooms listed on Airbnb in London alone. As rent a room was introduced to increase the supply of affordable long term lodgings it would appear the government review is taking place in direct response to the popularity of short term letting sites. Read more on the RLA website.