The proportion of homes being used as short term lets in London has leaped to a record one in thirty two, according to new analysis. Local authorities across the capital say the growth of the sector is exacerbating the capital’s housing crisis. New analysis by Savills, commissioned by a group of twelve central London councils called Central London Forward, finds that there were 117,000 homes listed for short-term let across London last year. This is equivalent to one in 32 homes in London.
In London properties can only be rented out for a maximum of 90 nights per year without specific planning permission. Savills’ analysis found that over half (52%) of the short-term lets in London were let for more than 90 days, leading to fears that some owners may be breaking the law. In Westminster alone, there are over 16,000 short-term lets, with almost 14,000 being whole properties, and over half of those available for more than 90 days.
In central London, short-term lets represent a major proportion of the total private rental stock. In Westminster, the listings represent 40% of all private sector homes. In the Royal Borough of Kensington and Chelsea and Camden, the figures represent 35% and 25% of the private rental stock respectively. In Westminster, annual income from short-term rentals is estimated to be £450 million; equal to almost 18% of the total private rental income in the borough.
Adam Hug, chair of Central London Forward and is also leader of Westminster council, said: “The extensive and lucrative short term let market in central London is inhibiting Londoners’ access to affordable, secure housing, and placing upward pressure on already expensive private rents in the capital. In Westminster alone, there are over 16,000 short-term rentals which detract from permanent, secure housing for residents.
“Councils in central London are working hard to enforce existing rules, but both further regulations, including a licensing scheme, and greater resources are needed to address this growing problem. London is a global city with a thriving tourism industry, but we need to get the balance right so that Londoners can continue to live in the city they call home.”. Richard Olszewski, Leader of Camden Council, said:“Stronger, more effective regulation of short-term lets in central London would benefit residents, councils, and businesses. It would prevent the loss of vital permanent housing stock for Londoners; contribute towards councils’ confidence to invest in direct delivery of social housing; and make the tourism industry more sustainable for the businesses reliant on it.”.
