Where short-term lets are squeezing the UK housing market

New figures reveal a dramatic rise in short-term lets across the UK, with Hartlepool experiencing a staggering 122% increase in listings last year.

Blackburn and Tamworth also saw their short-term rental markets double in size, according to analysis by SFG20. There were also increases in Rochdale (89%) and Trafford (75%).

The organisation provides advice on building maintenance, and it says that Crosby saw a 17% decline – along with Scottish cities like Glasgow, Edinburgh and Aberdeen.

It analysed Office for National Statistics (ONS) data and says that the boom in short-term rentals is fuelling concerns about the affordability of housing for local residents.

Short-term lets available across the UK

SFG20’s product and professional services director, Paul Bullard, said: “With the recent surge in short-term lets available across the UK, saturating the property ladder, many local residents will be feeling the negative impact.

“As landlords snap up properties for short-term and holiday rentals, housing supply for long-term residents continue to dwindle, driving up both purchase and renting prices.”

He adds: “This trend prices many locals out of the market, making it increasingly difficult for them to become homeowners in their local neighbourhoods.”

Pitfalls of the short-term let sector

However, landlords are also being cautioned about the potential pitfalls of the short-term let sector – and the need to meet tightening regulations.

Mr Bullard said: “New landlords entering the short-term let market may be unaware of the stringent regulations governing property maintenance, safety standards, and tenant rights.

“Failing to comply with these rules can result in a series of damaging consequences.”

He says these include:

• Financial penalties, at an average of £150,000
• Lawsuits
• Unexpected costs from reactive maintenance
• Decreased property value
• Increased insurance premiums
• Rent revenue reduction
• Reputational damage.