Illegal short-term lets surge in London as government considers mandatory registration scheme

Illegal short-term lets are on the rise in London, as the government hints at giving more powers to local authorities to clamp down on the problem.

According to a report by Central London Forward, more than half of the 117,000 short-term lets listed across the capital in 2024 were booked for over 90 days in a year, which goes against current rules.

The report reveals that local authorities are currently unable to enforce the 90-day limit due to a lack of reliable information about which properties are being used as short-term lets.

Short-term lets on the rise

The report reveals the rise in short-term lets in 2015, there were fewer than 30,000 short-term lets in London. This more than doubled throughout 2016 to 60,000, peaking at over 100,000 in 2019.

Last year, one in every 32 London homes was used as a short-term let.

According to the report, just 1% of hosts own more than 21 properties each, but they account for almost 25% of all listings. The report says a portion of the market is controlled by businesses, rather than individuals.

Across Central London, income from short-term lets is equal to 8% of total private rental sector income. In Westminster, the income from short-term lets was £450 million in 2024, equal to 18% of the total private rental sector income in the same year.

Introduce a mandatory national registration scheme

The report says existing regulations in London are not working. London imposes a 90-night maximum stay on short-term let accommodation. However, in 2024, more than half of all short-term lets in the city were rented out for more than 90 nights, which, unless planning permission has been granted, is against the law.

According to the report, in Westminster alone, almost 10,000 properties were let or available for more than 90 nights.

The report suggests the government introduce a mandatory national registration scheme for short-term lets to tackle the problem.

Matthew Pennycook has previously said the government will look at this and give local authorities more powers to enforce regulations.

He said: “We remain committed to introducing a registration scheme for short-term lets and removing the furnished holiday lets rules to ensure all income from property will be treated the same for tax purposes.

“We also recognise that more needs to be done and are considering what additional powers we might give local authorities to enable them to respond to the pressures created by short-term lets.”