It’s December in London and Christmas is coming. After a very busy Autumn Airbnb has started to go quiet. I am booked most of the time but some days I have one or two empty listings a week. It has been the same the previous two years and usually pics up towards the end of January. The price I am charging for the each listing has risen slightly this year (after being flat for two years). I believe this is possible because of the lower GBP versus the Euro and the Dollar.
New House Sharing Rules in London
New rules from the Greater London Authority (which only affect Airbnb Hosts within Greater London not the rest of the UK) have come into force which will affect some hosts (but not all?). Up until 2015 rules forbid any short term lets without planning permission.
The important part of the new rules say: –
the cumulative number of nights of use as temporary sleeping accommodation does not exceed 90 nights in a calendar year
The vast majority of hosts in London will be letting out for more than 90 days a year so this could be a real problem for hosts. It is possible to apply for permission to be exempt from the rules by obtaining planning permission. Obtaining planning permission for temporary sleeping accommodation (effectively a hotel) is not going to be possible for most hosts as the criteria is exhaustive and would be opposed by neighbours.
Airbnb is limiting their platform for hosts from 1st January
In a letter recently sent to hosts Airbnb says it will limit the number of bookings to 90 days (presumably the website will automatically de-list the listing when the 90 day limit is reached).
As of 1 January 2017, Airbnb’s systems will automatically limit entire home listings in Greater London to 90 nights a year…….we are introducing a change to our platform that will create new and automated limits to help ensure that entire home listings in London are not shared for more than 90 days a year, unless hosts confirm that they have permission to share their space more frequently.
Do the new rules only affect entire home listings?
The letter from Airbnb to hosts clearly says that ‘entire home’ listings are not shared for more than 90 days a year. Presumably we can take from this that those hosts offering private rooms in their house will be exempt from the 90 listing rule. The deregulation act does mention ‘This applies even if only part of the premises is used as temporary sleeping accommodation’ so those hosts who have only private room listings may also fall foul of the new rules.
I think that Airbnb is trying it’s best to conform with local rules (the bad press the company has received all over the world is surely on the mind of the directors) but hopefully is doing it in such a way to give hosts a chance to be seen to adhere to local rules and still host without interruption. We will have to wait and see how the new rules will affect bookings on the website. A obvious solution to getting around the rules would be to have the same listing under numerous profiles (presumably 360 days per year/ 90 days = 4 profiles needed).
It’s worth noting that up until 2015 short term lets were effectively illegal in London and the vast majority of hosts had no problems. At the very least we are now getting some clarity on what the rules are and will be in the future so hosts can plan properly. To be honest the rules do make some sense and will deter those ‘professional’ hosts from investing large sums of money buying property purely to let on airbnb. Those hosts who simply let out a spare room and work in regular jobs hopefully will be unaffected.