Landlords Exposed Flouting London’s Airbnb Rules Amidst Housing Crisis

Landlords in London are increasingly being exposed for illegally flouting regulations governing short-term lets, a practice that exacerbates the city’s acute housing crisis and disrupts residential communities. While platforms like Airbnb offer lucrative opportunities for property owners, the non-compliance with rules, particularly the 90-day limit, has led to significant fines and growing calls for stricter oversight. As of October 2025, the tension between tourism revenue and the fundamental need for affordable, stable housing continues to define this complex issue.

Impact on London’s Housing Market and Communities

The proliferation of short-term lets, often operated in defiance of regulations, has a profound and detrimental effect on London’s housing landscape and the fabric of its neighbourhoods.

Depletion of Long-Term Rental Stock

A significant consequence of widespread non-compliance with short-term letting rules is the direct reduction of properties available for long-term residents. When properties are continuously occupied by transient tourists, they are effectively removed from the market for individuals and families seeking stable, affordable housing. This scarcity of supply inevitably drives up rental prices for the remaining long-term accommodations, making it increasingly difficult for Londoners to find homes within their budget. In 2024, it was estimated that one in 32 homes in London were used as short-term lets, with a substantial concentration in central areas, contributing to this stock depletion.

Exacerbation of the Housing Crisis

London is already grappling with a severe housing crisis, characterised by exceptionally high demand and a chronic undersupply of homes. The diversion of properties into the short-term rental market, often illegally, intensifies this problem. It significantly hinders the ability of key workers, young families, and lower-income individuals to secure housing in the city, frequently forcing them to relocate further afield. This situation is compounded by the growing number of households in temporary accommodation, a crisis that is particularly acute in London. In 2025, over half of England’s 128,000 households in temporary accommodation were located in London, highlighting the severity of housing insecurity. A report from May 2024 indicated a 41% reduction in London properties available for private rent since the COVID-19 pandemic, further underscoring the pressure on the housing market.

Disruption to Residential Neighborhoods

Beyond the impact on housing availability and affordability, the rise of short-term lets can severely disrupt established residential communities. A constant influx of transient guests can lead to increased noise disturbances, a diminished sense of security for permanent residents, and a shift away from community-oriented living towards a more transient and commercialised atmosphere. Complaints from residents frequently cite loud noise late into the night and a continuous stream of unfamiliar individuals, creating an environment that is “stressful and devastating” for those living there.

Consequences for Non-Compliant Landlords

Authorities are intensifying their efforts to penalise landlords who disregard short-term letting regulations, with significant financial and legal repercussions.

Legal Action and Fines

Local authorities are increasingly taking decisive action against landlords who flout short-term let regulations. In a notable case concluded in June 2025, George Nathanel, managing two flats in North Finchley on behalf of Zenobia Properties, was ordered to pay a substantial fine of £75,000 plus costs. This penalty was for illegally letting these flats on platforms like Airbnb and Booking.com for extended periods, significantly exceeding the legal limit. This fine, described as unprecedented by some reports, could signal a tougher enforcement approach in the capital.

Breach of Condition Notices and Court Sentences

The enforcement process often begins with a Breach of Condition Notice, requiring the landlord to cease non-compliant activities. When landlords fail to comply with these notices, as demonstrated in the North Finchley case, legal proceedings can escalate to magistrates’ courts. The outcomes can include substantial financial penalties, court costs, and victim surcharges, underscoring the seriousness with which these offenses are treated.

Evidence of Illegal Activity

Authorities are adept at gathering evidence of illegal short-term letting. This often involves a combination of neighbour complaints, planning enforcement inspections, and meticulous analysis of online booking platforms. Despite attempts to conceal operations, reviews left by guests on sites like Airbnb can directly implicate landlords. Evidence can include detailed logs of occupancy, revealing properties being booked for hundreds of days per year, far exceeding the legal 90-day limit without specific planning permission. In the North Finchley case, evidence showed at least 220 days of occupancy across the two flats in the first 10 months of 2024. Online listings, even when claimed to be unaware of by the landlord, can serve as direct proof.

Challenges in Enforcement

Despite increased enforcement, councils face significant hurdles in effectively policing the short-term rental market.

Difficulty in Tracking and Monitoring

Enforcing the 90-day rule is an arduous task for local councils. The sheer volume of properties involved, coupled with the ease with which landlords can switch between multiple booking platforms, manage bookings remotely, and operate discreetly, makes comprehensive monitoring extremely challenging. Councils often rely heavily on tip-offs from alert residents to initiate investigations. In 2024, over half of all short-term lets in London were rented out for more than the permitted 90 nights annually, indicating the scale of the enforcement challenge.

Resource Constraints for Local Authorities

Planning enforcement teams are frequently under-resourced and struggle to build the robust evidence base required to pursue legal action. The complexity of investigations, which can necessitate surveillance and intricate legal processes, demands significant time, expertise, and financial investment. Many local authorities find it difficult to sustain these demands amidst competing priorities.

The Role and Responsibility of Booking Platforms

There is an ongoing debate regarding the extent to which booking platforms like Airbnb should be responsible for policing compliance. While platforms have introduced tools to limit listings that exceed the 90-day cap, the effectiveness of these measures is often undermined by the circumvention tactics employed by some users. Calls have been made for these platforms to share more data with councils and government bodies to aid in enforcement efforts, thereby enhancing transparency and accountability.

Evolving Regulatory Landscape and Calls for Change

In response to the ongoing challenges, stakeholders are advocating for enhanced regulatory measures to create a more transparent and enforceable system for short-term lets.

Government Reforms and Planning Changes

In February 2024, the UK government announced reforms aimed at giving councils greater power to control short-term lets by making them subject to the planning process. These changes are part of a broader strategy to protect communities and ensure housing availability. However, London Councils expressed concerns in May 2024 that a proposed new planning ‘C5’ use class, if implemented without requiring specific planning permission for existing short-term lets, could lead to the loss of thousands of homes from London’s permanent housing stock. They advocate for maintaining strict planning application rules and for all short-term lets to remain subject to the planning process, irrespective of the 90-day rule.

Proposed Short-Lets Register and Data Sharing

A key proposal to improve regulation is the establishment of a mandatory national register for all short-term lets. Such a register would create a centralised database, making it significantly easier for councils to track properties, identify potential breaches, and enforce the 90-day rule more effectively. Alongside a register, there are calls for advertising websites to be legally obliged to share relevant booking data with local authorities and government departments, providing crucial oversight of the short-term rental market.

Local Authority Licensing Requirements

In London, renting out a property for more than 90 nights a year without specific planning permission generally requires a license from the local borough council. The application process, fees, and specific requirements vary by borough. For example, in Westminster, hosts planning to rent for over 90 nights annually may need to obtain a “Temporary Sleeping Accommodation” license, with applications costing around £800 and requiring detailed property information and proposed rental dates. Properties must also meet stringent safety standards, including fire, gas, and electrical safety regulations.

Perspectives from Stakeholders

The issue of short-term lets is viewed through different lenses by various stakeholders, each with their own motivations and experiences.

Landlords’ Motivations vs. Reality

Some landlords view regulations such as the 90-day rule as unwarranted interference, particularly when facing rising costs and economic pressures. The emergence of platforms like Airbnb presented an opportunity for increased income, with some hosts citing the cost of living crisis as a primary motivation for extensive use of short-term lets. However, evidence from cases like George Nathanel’s, where online reviews directly contradicted claims of ignorance about short-term rentals, suggests that some operators are actively seeking to circumvent rules rather than merely being unaware of them.

Resident Concerns and Lived Experiences

Residents living in areas with a high concentration of short-term lets often bear the brunt of the negative impacts. Experiencing constant noise, a lack of privacy, and feeling displaced in their own neighbourhoods can lead to significant stress and a detrimental impact on their quality of life and mental health. As one neighbour described the situation with illegal short-term lets, it was “stressful and devastating,” severely impacting their ability to sleep and making their home life unbearable.

Council Initiatives and Enforcement Efforts

Local councils, such as Westminster and Barnet, are actively investigating properties suspected of breaking short-term let rules. These boroughs are implementing crackdowns and working to address what has been described as the “wild west” of unregulated short-term rentals. These efforts are largely driven by resident complaints and a strong desire to protect their communities and preserve housing stock for long-term residents. Barnet Council, for instance, has publicly stated its commitment to prosecuting rogue landlords and thanking residents for bringing cases to their attention, highlighting a successful outcome for neighbours whose lives were made “miserable”.

The Current State and Future Outlook

The landscape of short-term rentals in London is dynamic, shaped by evolving regulations, technological adaptations, and ongoing debate about balancing economic benefits with community well-being.

The Dual Nature: Tourism Benefits vs. Housing Costs

Short-term lets undeniably bring economic benefits through tourism, with London remaining a top global destination, attracting millions of international visitors annually. The tourism industry is a significant contributor to London’s GDP. These lets also provide income opportunities for property owners. However, their excessive and unregulated concentration leads to substantial societal costs, primarily through pressure on housing availability and affordability. The challenge for policymakers lies in striking a sustainable balance that fosters tourism without compromising the availability of homes for local residents or the integrity of residential communities.

Regulatory Adjustments and Future Trends

The continuous pressure from residents, housing advocates, and local authorities suggests that regulatory measures for short-term lets will likely become more stringent. The government’s planned mandatory national register and the move to subject future short-term lets to planning permission represent significant steps. While the rental market has seen a slight cooling in inflation rates as of July 2025, with UK rents for new lets rising by 2.4% year-on-year (the slowest pace in four years), London’s market remains under considerable strain due to its unique supply and demand dynamics. As enforcement capabilities improve and regulatory frameworks solidify, a trend towards more robust oversight, stricter licensing requirements, and greater accountability for online platforms is anticipated. The period of 2024-2025 continues to be one of intense scrutiny and debate, shaping the future management of this dynamic sector to better serve both visitors and permanent residents.