More and more buy-to-let landlords are turning to Airbnb to market their properties, with almost half the properties on Airbnb in Britain's largest cities being offered by landlords. The recent clampdown on tax breaks for landlords1 is causing the surge in property listings via the holiday lettings site, with more than 42,000 listings in London alone. However, in a recent report2 the Residential Landlords Association (RLA) has expressed concerns that 64 per cent of the entire home/apartment listings on Airbnb were available for more than 90 nights per year, with an estimated annual revenue of £144,227,328.
The popularity of the site, the RLA says, is depriving London of vital homes to rent and possibly even compounding the housing crisis and pushing up rents. The Association is now calling on the Mayor of London and the Government to undertake an urgent review of the policing of Airbnb to ensure that those advertising lets of longer than 90 days have the necessary permission and are not seeking to get round the law.
If you are a landlord with properties with significant mortgages or loans, you may soon see a major increase in the amount of income tax you are expected to pay. Contact Alan Ford or your usual Beavis Morgan Partner if you would like to explore your planning options in more detail.
1. Restrictions to finance cost relief for individual landlords
2. The Bedroom Boom – Airbnb London ~ Report commissioned by the Residential Landlords Association