A new register for short lets, including Airbnb properties, is poised to be launched in London this spring. This initiative, reported by The Standard, aims to enforce the current 90-night limit for short-term rentals in the capital, a regulation designed to mitigate disruption from transient guests and protect long-term housing availability. The details on how this register will operate and who will oversee it are expected to be disclosed before April.

The proposed register comes amid growing concerns over the proliferation of short lets in London, particularly in areas where the housing market is already under pressure. According to Westminster’s Labour council, approximately two-thirds of the 9,300 short lets in the borough may be breaching the 90-night rule. This regulation, introduced to ensure that properties are not used primarily for short-term rentals, aims to safeguard homes for local residents and reduce the negative impacts associated with short-term letting.

The push for a comprehensive registration scheme has been spearheaded by local MP Rachel Blake, who emphasised the need for urgent action to address the issue. “We are losing up to 20% of our homes in some parts of my constituency to short-term lets,” Blake stated. She advocates for Westminster to be a pilot area for the new registration system, underscoring the broader implications this initiative could have across England.

Enforcement challenges

The enforcement of the 90-night limit has been a significant concern for local authorities. Currently, compliance relies largely on self-reporting by landlords, which has proven insufficient. The registration scheme is expected to facilitate more rigorous oversight and accountability for those operating short lets.

Local councils have expressed frustration over the difficulties in monitoring the use of residential properties for short-term rentals, particularly in high-demand areas. The proposed register could provide a clearer framework for identifying non-compliant landlords and taking necessary enforcement actions. However, it remains uncertain whether participation in the register will be voluntary or mandatory, a decision that will significantly impact how landlords adapt to the new requirements.

Impact on landlords

For landlords operating in London, the introduction of a short lets register could have various implications. Those who comply with the existing regulations may find themselves at a competitive advantage, particularly if enforcement actions against non-compliant operators become more stringent. Conversely, landlords who have relied on short-term rentals to supplement their income may face challenges if they cannot adjust their operations to meet the new compliance standards.

Market reactions have been mixed, with some landlords expressing concern over the potential for increased regulatory burdens. The rental market is already navigating a complex landscape of regulations, and additional requirements could strain smaller operators in particular. Larger property management companies may be better positioned to adapt to these changes, potentially consolidating market power as smaller landlords exit the short lets sector.

Next steps for landlords

As the government prepares to unveil details of the register, landlords should begin assessing their current compliance with the 90-night rule and consider the potential impacts of the upcoming registration scheme. Engaging with local councils and industry associations may provide valuable insights on forthcoming regulations and best practices for compliance.