ARLA predict 500,000 PRS homes could be lost to short-term letsMake Text Bigger
Arla Propertymark have released a report on the impact of the growth in short-term lets such as Airbnb on supply in the Private Rented Sector. Arla predict that 500,000 homes could be lost to short-term lets, because of the increasing costs of anti-landlord regulation and taxation.
The research was carried out in partnership with leading consultancy Capital Economics. Click here to view the report.
The report finds:
– Landlords have come under increasing pressure from government regulations in recent years through the removal of tax relief, additional stamp duty and a ban on tenant fees
– Almost one quarter of landlords surveyed currently let out properties on short-term lets, while twelve per cent of these have done this by changing the use of a property that was previously used for long-term lets; almost 50,000 properties have already been made unavailable to long-term tenants in order for landlords to pursue short-term lets
– Increased flexibility and burdensome regulations in the long-term let sector were the main reasons for landlords to switch to short-term lets
– 10% of landlords surveyed said they were ‘very likely’ or ‘fairly likely’ to offer short-term lets in the future in properties that are currently used for long-term tenancies
– If only the landlords that said they were ‘very likely’ to move to offering short-term lets were to do so, between 80 and 230 thousand properties could be unavailable for residents looking to rent, which is equivalent to between 1.5 and 4.3% of the private rented sector dwelling stock in Great Britain
– If the landlords that said they were ‘very likely’ or ‘fairly likely’ to move to offering short-term lets were to do so, between 200 and 470 thousand properties could be unavailable for residents looking to rent, which is equivalent to between 3.8 and 8.7% of the private rented sector dwelling stock in Great Britain
– Short-term letting via online platforms has grown quickly over the past decade, with around 225,000 active listings on one site alone in 2017/18
– 16% of adults in Great Britain have let out all or part of their property on a short-term basis over the past two years; most commonly they have let out their main residence, but over 3% of people have let out a property they own, but don’t usually live in
David Cox, ARLA Propertymark Chief Executive, said: “The growth in short-term lets is particularly concerning for the traditional private rented sector. As landlords are continuously faced with increased levels of legislation, it’s no surprise they are considering short-term lets as a chance to escape this.
Unless the sector is made more attractive, landlords will continue to exit the market resulting in less available properties and increased rent costs.”
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