Rental Market and Airbnb -Sworn Enemies?

Airbnb: the online marketplace and hospitality service that has, undeniably, revolutionised the manner in which consumers seek out hospitality services and short-term lodgings.

However, as is the case with all things revolutionary, it’s rocked the boat somewhat, with property experts and commentators from all levels of the industry, witnessing an increasing number of Landlords removing their properties from the traditional rental market, over to Airbnb.

This has, in turn, triggered concerns regarding the future of the rental market as we know it, with a decrease in the number of properties available for long-term rental driving up the cost of those that remain on the market.

Policy Director of the Royal Landlord’s Association (RLA), David Smith, suggests that this policy ‘will only serve to hit the hardest, those young people and families who most need a growing private rented sector to meet their needs.’ This issue is particularly pertinent in London, where there is already a notable shortage of properties available for rent.

So far, little has been done in the capital to regulate the use of Airbnb, with some onlookers suggesting that the government’s introduction of £1000 tax-free income allowances for online activities, of which Airbnb qualifies, encouraging the ‘micro-entrepreneurship’ of hosts.

In addition to this, the RLA suggest that recent changes to mortgage interest relief, meaning landlords are taxed on their income as opposed to profit, also acts to incentivise landlords to favour the use of their properties as holiday lets, as opposed to longer term rental properties. Amongst landlords themselves, 36% have cited this as the primary reason for their move to Airbnb.

However, those offering counter-arguments, including Murray Cox, founder of ‘Inside Airbnb,’ a website which seeks to uncover and share the statistics about the platform, assert that citing Airbnb as ‘the cause of housing issues…is taking it too far,’ as these cities were already renowned for their expense. To this extent, it seems plausible to suggest that Airbnb functions as something of a scapegoat- a point of blame for those dissatisfied with the inevitable, and ever increasing, costs of living in London.

The luxury market continues to see a rise in this issue with even companies who work exclusively as Mayfair Agents, seeing a rise in landlords exchanging standard rental agreements for Airbnb earning potential. This issue is particularly relevant when applied to the Royal Borough of Kensington and Chelsea, where the rental market is particularly stagnant. This is demonstrable by the average time in which properties remain on the market in some of West London’s most elite neighbourhoods- on average 107.9 days.

Holding Airbnb responsible for exacerbating this problem, officials within the borough are in discussion regarding the implementation of a licensing system for those who wish to let their properties via Airbnb.

Airbnb argues that it’s strength is in its provision of ‘economic empowerment by bringing real benefits to regular people who share their home.’ This is certainly true in the case of landlords with properties further out of central London, many of whom use the platform as a means of increasing annual income or paying bills. However, it may be a little naïve to suggest the same is true of Landlords who use the platform as a means of renting properties on a longer-term basis.

Currently, the largest stumbling block, for both side of the argument, is a lack of compelling evidence. Airbnb refuse to release official data that might point more definitively to their impact on the current rental market. This means much of its criticism is rooted in speculation and estimation. Whilst Airbnb and its impact on rental markets are far from perfect, its achievements and drive for change should be acknowledged and welcomed, as opposed to being feared.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Forget kerb appeal: LRG report reveals what really triggers a homebuyer’s offer

One of the UK’s largest property services groups has published its debut sales report, uncovering what genuinely persuades buyers to make an offer – and the findings challenge the traditional focus on kerb appeal. While sellers often guess which improvements will pay off, the data shows where money is well spent and where it’s wasted.…
Read More
Breaking News

Prime London’s love affair with period homes continues

One in four listings are historic properties The latest research from Jefferies London shows that nearly a quarter of homes listed for sale across prime central London (23.3%) offer high-end homebuyers the chance to secure a period property, with demand for prime period properties at its highest in Maida Vale. Jefferies London analysed current for…
Read More
Breaking News

Industry Response to latest Nationwide House Price Index

Nationwide House Price Index for October 2025, with the latest figures showing no Halloween haunting for homebuyers where house price growth is concerned – despite widespread talks of Autumn Budget uncertainty hitting the market. The latest index shows that: – House prices increased by 0.3% between September and October of this year. On an annual…
Read More
Breaking News

The capital’s most haunted property hotspots for Halloween homebuyers

The latest analysis by Foxtons has revealed which of the capital’s spookiest postcodes command the largest house price premiums, as the average cost of purchasing a property in one of London’s most haunted neighbourhoods comes in 48% more than the wider London average. Foxtons analysed the property market across 14 of London’s most haunted locations,…
Read More
Breaking News

Annual house price growth edges higher in October

Slight increase in annual house price growth to 2.4% House prices were up 0.3% month on month Kitchen and bathroom renovations most popular amongst homeowners in last five years Analysis based on Nationwide’s HPI data shows extensions or loft conversions with a bedroom can increase house value by up to 24% Headlines Oct-25 Sep-25 Monthly…
Read More
Breaking News

How much will a Halloween Castle set you back

The latest research from Enness Global has revealed that, for those looking to follow in the footsteps of Count Dracula this Halloween, the average castle on the UK market will set buyers back around £2.2 million, requiring a deposit of £332,609 and a monthly mortgage repayment of more than £10,000. Enness Global analysed current castle…
Read More