Clampdown on Airbnb lets

The Housing Secretary Michael Gove has announced this morning a clampdown on Airbnb rules that may well have far reaching affects on the Liverpool City Centre residential market. The new rules will include a mandatory national database of properties, the requirement of planning permission for new Airbnb’s and power given to local councils to control the market.

Whilst the main aim of the new rules may well be focused on those holiday areas where the supply of Airbnb style accommodation has “exploded” at the expense of local buyers/renters, many city councils may also see this as an opportunity to “control” their own areas which have also seen a huge increase in short term holiday accommodation. Given the issues in the city centre with rapidly rising rents and low levels of available accommodation the council could look to restrict the supply of Airbnb to try and improve the supply of normal residential letting accommodation.

The announcement of a mandatory register of properties and the requirement for planning permission for new Airbnb style properties may also impact supply. As many of the Airbnb’s in Liverpool are in buildings where the lease specifically excludes the operation of such business activities, a register of properties and the requirement of planning permission may well “expose” those properties that should not actually be operating. There is a strong likelihood that many of these landlords may well revert back to AST lettings in such circumstances, thereby improving the supply of rental accommodation.