Posts with tag: short-term lettings

£1,001 – The Cost of a Holiday Apartment in London hits a New High

Published On: March 22, 2017 at 11:38 am

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What makes London so appealing to the millions of visitors pulling them in every year? People pour in from all over the world, be it to visit, work or just live. Well, we think we know the answer – there are few more cosmopolitan places in the world.

The huge demand is being met by building new Crossrail links into central London and construction of new housing – such as the Battersea Power Station project – these will certainly help to cope with the influx.

So how is this affecting property prices, hotel prices and, in particular, Airbnb rentals? Since the launch of Airbnb, hoteliers in London haven’t had it easy. It took a while for Londoners to really embrace the sharing economy and put their own homes up for rent on the short-term accommodation website, but they’ve never looked back since.

We compared listings from five of the top cities in the world and worked out average prices (in pounds) for a one night stay. As you can see from the graphic, London apartments have an average rental price of £143 per night compared with the most expensive city we checked, which was Sydney, way out ahead at £178 per night.

Visitors looking to spend a romantic seven-day holiday in the UK’s capital city will have to fork out a whopping £1,001 just for their Airbnb stay – that usually won’t include a breakfast – but you will have the luxury of your own private kitchen.

The graphic above displays the cost in GBP of a seven-night stay in each city. Paris, world renowned for being one of the most romantic cities in the world, is the cheapest out of all the famous cities, at just £616 for a seven-night stay.

So, is London worth it? Is the inflated price good value compared to its neighbour Paris? Well if you don’t fancy paying £143 a night for your London stay, then why not stay outside Zone 1 of central London?

The graphic below compares the average London price with the five lowest prices boroughs of London:

As you can see, there’s good value to be had if you’re not particular as to where you’ll be staying. Compared with the most expensive boroughs in London, you can save more than 50% of your accommodation costs by staying in Zones 4, 5 and 6.

MPs call for greater powers to crackdown on illegal London lets

Published On: March 22, 2017 at 10:37 am

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As more buy-to-let landlords in London are beginning to utilise short-term letting platforms such as Airbnb, MPs are calling for more powers in order to crackdown on rogues.

A growing number of landlords are using these platforms to breach rules on letting properties, which only permit homes to be rented out short-term for up to 90 days.

Crackdown

Talking to Parliament yesterday, Westminster North Labour MP Karen Buck, along with nine other MPs, argued that landlords should have to notify councils of the dates that their property is being used for short-letting.

Buck notes that Westminster council alone is investigating over 1,100 properties which are believed to have breached the 90-day limit.

She said she welcomed, ‘freedom for homeowners to let their properties,’ but insisted that, ‘without excessive bureaucratic interference,’ it is hard for, ‘cash strapped councils to police the rules.’[1]

‘Alongside the responsible owner-occupiers are irresponsible ones, illegal sub-letters and an increasingly significant commercial operation, seeking to take advantage of potentially higher yields,’ she continued.[1]

MPs call for greater powers to crackdown on illegal London lets

MPs call for greater powers to crackdown on illegal London lets

Blocks

Earlier in March, the Mayor of London called on short-term agents operating in London to block hosts from renting out homes in the capital for over 90 days. These include Veeve, One Fine Stay, Wimdu, Booking.com, HomeAway and Airsorted.

However, until there is a change in the existing rules to analyze activity levels, Field thinks that a, ‘free-for all in short-term lets’ will keep, ‘causing misery for thousands of our constituents.’[1]

‘We want the local council to have effective powers to clamp down on this,’ she concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/mps-call-for-greater-powers-to-clamp-down-on-illegal-lets-in-london

Short-Term Lettings Industry Vows to Stop Landlords Turning Homes into Hotels

Published On: February 22, 2017 at 11:15 am

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The short-term lettings industry, which includes Airbnb, joined local authorities and community groups at City Hall yesterday to discuss growing concerns about landlords turning homes into hotels.

Short-Term Lettings Industry Vows to Stop Landlords Turning Homes into Hotels

Short-Term Lettings Industry Vows to Stop Landlords Turning Homes into Hotels

Around a quarter of London homes listed on Airbnb are believed to have been let for more than 90 days last year – many illegally and in breach of an act designed to prevent landlords turning much-needed housing into what have been described as hotels by Labour’s London Assembly housing spokesperson, Tom Copley AM.

According to Airbnb, 4,938 of its entire London home listings – 23% of the total – were let for three months or more last year, despite a law requiring anyone doing so to apply for planning consent.

But the firm is among those that yesterday reaffirmed its commitment to enforcing the 90-day limit during a meeting hosted by Tom Copley AM, which focused on the need to stop landlords letting their properties beyond the limit set by the Government.

Speaking after the meeting, Copley said that there is “clear consensus over the need to collaborate to stop short-term lettings sites being abused by professional landlords”.

Guidance issued by the Department for Communities and Local Government (DCLG) in 2015 removed the need for planning permission to rent out a room or property as temporary accommodation for less than 90 days per year. While the 90-day limit remains in place, local authorities say it is difficult to enforce.

Copley continued: “We know that some landlords are essentially transforming long-term homes into hotels without planning permission. This meeting showed that there is clear consensus over the need to collaborate to stop short-term lettings sites being abused by professional landlords.

“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 and to work together on enforcing the 90-day limit, including sharing data with boroughs where necessary.”

He said: “There is no disputing the many economic benefits to Londoners of tourism that Airbnb and their counterparts create. We must ensure the costs don’t outweigh the benefits, by preventing commercial landlords from taking advantage of the system and putting even more pressure on our housing supply.

“It’s also crucial that hotels and the hospitality sector don’t face unfair competition from professional landlords setting up as hotels by the back door, avoiding taxes and regulations.”

He added: “Yesterday’s meeting was a positive discussion about the need to ensure hosts cannot break the law by letting out properties short-term for more than 90 days per year. However, effective enforcement hinges upon effective legislation from Government, and we need them round the table for any future discussion. I look forward to continuing this work with platforms, boroughs, community groups, the GLA and central Government to ensure short-term lettings are effectively regulated.”