Economics

In the News

Airbnb's impact on UK housing market

Geoff Riley

26th October 2017

BBC Newsnight analyses the impact of short-term letting apps such as Airbnb. The impact stretches well beyond London to cities such as Manchester and Edinburgh.

The main argument is that the Airbnb effect is taking properties out of the local rental sector. And some neighbours fear a loss of security as numerous homes are let out to fleeting guests for a few days. How would you feel if a hotel appeared next to your home?

A number of businesses now run multi-home listings on AirBNB - effectively they are becoming chains of hotels albeit without the tougher regulations that hotels must meet. 

Buy-to-let seems to be subsumed by rent-to-let as people respond to above average returns from the holiday-let market. People are legally allowed to sub-let a property for up to 90 days per year without breaching planning controls.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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