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A Chartered Institute of Housing (CIH) publication released today (4th April) reveals how the rapid growth of short-term lets could lead to the loss of private rented homes to the short-term lets market.

The ‘UK Housing Review 2019’ suggests that schemes such as Airbnb can account for over 77,000 lets in Greater London, with the bulk of the lets heavily concentrated in Westminster (8,328), Tower Hamlets (7,513) and Hackney (5,907) boroughs.

According to reports, if left unregulated, short-term lets can also lead to the displacement of long-term residents from their communities.

Further statistics reveal that Edinburgh has over 10,000 short-term lets, with its city centre ward alone having two Airbnb lets for every 13 homes, while the Isle of Skye in rural Scotland has one Airbnb letting for every 10 houses.

CIH state that the analysis makes clear from the concentration of short-term lets locations across the country that the rise of Airbnb has been a highly localised “phenomenon”, creating “globalhoods” – ultra-desirable neighbourhoods drawing in visitors from across the globe at an ever-increasing rate.

The analysis further outlines potential impacts of the growth in short-term lets. These include:

• Non-compliance by hosts with existing regulations, such as insurance, fire safety and planning permission
• Prolonged loss of communal spaces, conveniences and facilities, since it is not just homes, but entire neighbourhoods, that are being shared
• Impact on local housing markets both with respect to rising rents and increased property values, especially in quite tightly bounded local areas, such as Edinburgh’s New Town

The report continues to highlight potential solutions, including:

• Ensuring that better data exist on short-term lets, so that local authorities can keep track of their growth and location
• Introducing a modest local tourism tax to assist local authorities in the monitoring and regulation of the short-term lettings sector
• Caps through the planning system by local authorities on the number of short-term rentals in particular high-pressure areas

On reports, CIH CEO, Terrie Alafat CBE said: “Digital platforms like Airbnb have brought great convenience to tourists who come to enjoy our cities and communities, as well as economic benefit to their hosts and local areas.

“However, if left unregulated, there is a real risk of loss of much-needed housing from the private rented sector to the short-term lets market, and displacement of long-term residents.

She added: “We need to find a way to accommodate the housing needs of individual residents while allowing tourism to continue in our most popular locations.

“More regulation could be necessary if growth continues and local authorities still have no way to accurately monitor numbers.”