Council clamps down on Airbnbs and short-term lets in bid to tackle housing crisis

A city council is considering a crackdown on short-term lets in a bid to tackle housing supply issues. Brighton & Hove City Council is exploring ways to regulate short-term lets, including Airbnb holiday rentals, which are being blamed for exacerbating a housing shortage.

It is not known exactly how many short-term lets are currently operating in the seaside city, but the council believes there could be as many as 5,000. This has led to fewer homes being available to rent, sending rental prices in Brighton soaring.

According to a council report, measures may include licensing or registering short-term lets, and finding additional resources for investigations into operators who break planning enforcement rules.

As there is currently no register, the council believes that some small letting businesses may be getting away without paying business rates, putting an extra burden on council finances.

Two years ago, the government unveiled plans for consultations on planning changes and introducing a registration scheme for short-term-let owners in England. This is yet to materialise. However, in October 2023, it became a criminal offence to operate a short-term let in Scotland without a licence under a new law brought in by the Scottish government to help tackle issues with housing demand. Breaking the law could land operators with a £2,500 fine.

Brighton’s proactive approach to tackling the Airbnb boom echoes other local authorities that have taken matters into their own hands.

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In January, Westminster City Council announced the expansion of teams to crack down on short-term lets abuse and noise nuisance. The council has around 13,000 short-term lets and is currently investigating more than 2,600 properties allegedly being used unlawfully for short let purposes.

Meanwhile, Camden Council has also pushed back, warning developers that applications for whole residential properties to be converted to short-term or holiday lettings are likely to be refused in a bid to protect housing stock.

While campaigners have welcomed Brighton’s proposals, they have been met with a mixed response from lettings agencies.

Dan Wilson Craw, deputy chief executive of Generation Rent, said: “Short-term holiday lets are tearing families away from the communities they’ve long called home. Bit by bit, we’re seeing communities vanish, as first-time buyers and renters are priced out by landlords chasing profits in holiday hotspots.

“Brighton & Hove City Council is taking a welcome step by considering a move to limit holiday lets by requiring landlords to apply for licences before they can rent homes out to tourists.

“If councils were given powers to control the number of holiday lets, this would make more homes available for the people who need them most.”

Catherine Lane, from MyHolidayLet Brighton, is an Airbnb host with more than 20 years’ experience in the industry. She told Big Issue that she agreed that “light-touch regulation is sensible” and “fair and proportionate” regulation of Brighton’s short-term lets would help to maintain trust in the sector.

She added: “My concern is the short-term letting sector is already one of the most heavily taxed areas of small business. New rules must not simply serve as a revenue-raising exercise under the guise of regulation, which means we are not able to invest in our businesses and leads to UK tourists going abroad, damaging Brighton jobs and all the other businesses in the tourism economy such as restaurants, bars, cafes [and] tourist attractions.”

Lane argued that any new regulation would only have a “negligible” impact on housing availability in Brighton, adding: “Many holiday lets in Brighton are in listed buildings, come with very high maintenance costs, and have low EPC ratings – factors that make them unsuitable or financially unviable as long-term rental properties.

“To address the housing crisis, we need more homes built. If we are serious about solving the housing crisis, the government must commit to building far more homes annually than current paltry target of 1.5 million over five years – and certainly more than can be clawed back from a very small number of holiday lets that contribute hugely to the UK economy and the green agenda by stopping people flying abroad.

“Fear of legislation is primarily driving properties out of the rental market and leading to the housing crisis and not holiday lets. Over recent years, increasing regulation – from tax changes to the Renters Reform Bill – has made many homeowners afraid to rent out under-used properties. The risks now often outweigh the benefits.

“We need carrots, not more sticks. If the goal is to bring more homes into long-term rental use, incentives must be part of the solution. Current policy is having the opposite effect: thousands of rental properties have already been withdrawn from the Brighton market in response to recent reforms.

“Airbnb and short-term lets are not the root cause of the housing crisis.”

Stephen Stone, managing director of Brighton Holiday Lets, claims the number of holiday lets in the city has been exaggerated.

He said: “Having operated our agency in Brighton and Hove for over 20 years, we’ve certainly seen the industry evolve. While concerns are understandable, estimates regarding holiday lets in the city are often exaggerated for headlines. The latest figures from Price Labs indicate there are 2,600 self-contained holiday rentals, which represent 1.9% of Brighton’s total housing stock. For crucial context, 1,695 homes were registered as long-term empty as of October 2023.

“Holiday rentals are a vital contributor to Brighton’s economy, bringing substantial financial value to the people who live here. They attract visitors who spend money locally, directly benefitting our small businesses, from cafes and shops to cleaners and contractors. This spending is more likely to stay within our city, supporting local jobs and livelihoods, a standout advantage over profits from international hotel chains which are often repatriated.”

Stephen said he welcomed a national registration scheme for short-term lets, but felt that any localised licensing scheme would be “premature”.

“We fully support the government’s upcoming national registration scheme, with public testing due to start in the next 12 months,” he said. “This sensible, data-led approach will enable fair and informed policy decisions. Until this national framework is in place, a separate local Brighton & Hove Council licensing scheme feels premature and risks unnecessary duplication.

“If the council’s primary motivation is revenue generation, a tourism levy would be a more appropriate and profitable measure. This ensures that visitors, rather than residents, contribute to the upkeep of our city.

“With Brighton’s tourism economy valued at £1.27 billion in the last recorded figures, holiday rentals are instrumental in distributing that spend across local restaurants, pubs, shops, and service providers, including during the quieter mid-weeks.”

In response, councillor Jacob Taylor, deputy leader of Brighton & Hove City Council, told Big Issue: “Brighton & Hove is a city with a vibrant and thriving local tourism economy, and short-term lets can provide benefits, such as generating income for local businesses or delivering flexible additional bed capacity, enabling the city to host large-scale events.

“However, without regulation, the rapidly growing short-term lets sector impacts the housing supply for our city’s residents… and can also negatively impact neighbours by causing noise nuisance, attracting antisocial behaviour, putting pressure on limited parking, leaving rubbish out incorrectly and even endangering visitors due to lack of correct fire and gas safety measures.

“While there are no immediate plans for licensing short-term lets, we’re committed to lobbying the government for a licensing scheme.

“This would also allow us to have a more exact idea on the number of short-term lets in the city.”

The proposals are due to be discussed by councillors later this month.

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