Monday, 25 May 2020

Long-term rentals set to decline

LANDLORDS are moving away from long-term rental properties and into the short-term lets market, new research has found.

ARLA Propertymark says the number of active listings on Airbnb in the UK rose by 33 per cent to 223,000 in 2018 and from 168,000 in 2017.

London has the largest short-term lets market in the UK, with the number of active listings rising four-fold from 18,000 in 2015 to 77,000 in 2019.

A key concern about the increase in short-term lets is the impact it’s having on the private rented sector and the tenants who will suffer due to a fall in the number of properties available for long-term rent.

If supply in the private rented sector continues to fall, a rise in rent costs is inevitable.

ARLA’s findings show that 16 per cent of landlords said they only offer short-term tenancies and a further seven per cent offer both short and long term lets.

Furthermore, 2.7 per cent of landlords have changed from offering long-term tenancies to short-term lets.

The report suggests that half of landlords that offer short-term lets only do so to enjoy more flexibility in how they use their property.

Many landlords also blame the burden of increased regulation in the long-term letting market and say they can achieve higher rents with short-term lets.

Based on the number of landlords considering a move to short-term lets, up to 230,000 properties could be left unavailable for tenants if landlords who said they were “very likely” to move to offer short-term lets were to do so, claims the report.

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