Only 3% of landlords currently offer short-term lets despite the boom in the temporary accommodation market, according to new research.
The National Landlord Associations (NLA) Quarterly Landlord Panel Survey Q4 2018, found the vast majority of landlords have not even considered letting out their properties for short-term lets, with just 24% saying it was something they had thought about.
Short-term lets cover everything from one night bookings to tenancies of around six months.
The success of companies such as Airbnb and HomeAway have fuelled the short-term lettings market to the extent that several global cities have cracked down on Airbnb rentals because of the impact on rents and affordable housing.
Properties in London can be rented out for no more than 90 days, but there are no upper limits outside of the capital.
While letting a property short-term can be profitable for landlords and a “no-brainer” in areas where demand for temporary accommodation, it is important you understand your landlord mortgage terms and your existing insurance policy that may not cover short-term lets.
Richard Lambert, CEO of the NLA, said: “Holiday lets are treated very differently to other property portfolios in tax and regulatory terms, the decision to switch may be a ‘no-brainer’ for landlords in areas where there is strong demand from temporary visitors, particularly as there is are no real downside and nothing holding them back from doing so.”
“However, a shift of properties in a concentrated area to shorter-term letting can have a significant effect on the local rental market, reducing available properties and pushing up rents. There will always be unintended consequences when policymakers don’t make the effort to understand landlords’ motivations and behaviour.”