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Evening Standard
Evening Standard
World
Ross Lydall

Airbnb to work with councils to expose tenancy fraudsters

Council officials became concerned that flats in blocks such as the Trellick Tower were being offered on Airbnb for short-term lets

(Picture: Daniel Lynch)

Council tenants who illegally sub-let their homes on Airbnb are at greater risk of being exposed after a landmark court ruling.

The online rental firm has agreed to share financial information with Kensington and Chelsea council after the High Court approved a system that removed the risk of both sides inadvertently breaching GDPR data protection rules.

The case arose after council officials became concerned that flats in blocks such as the Trellick Tower were being offered on Airbnb for short-term lets.

The new rules apply to two estates in north Kensington but could pave the way for wider collaboration across Kensington and Chelsea – and potentially enable Airbnb to share similar details with other local authorities seeking to crack down on tenancy fraud.

The court order will allow Airbnb to share with council fraud investigators the addresses of any properties in the two estates listed on its website – and details of any payments received for letting them out.

Across the UK, it is illegal to sub-let social housing on Airbnb.

Kim-Taylor Smith, Kensington and Chelsea’s lead member for housing, said: “There is a huge demand for social housing in our borough and it’s simply not fair that people in genuine need are being denied a place to call home because others are illegally subletting their council properties to make money.

“Tenancy fraud is not a victimless crime. It costs the public purse an average of £42,000 a year for each home and this welcome collaboration with Airbnb will help us to clamp down on it in our borough.”

Theo Lomas, head of government relations for Northern Europe at Airbnb, said: “We want to work with councils to remove social housing. However the current situation is complex and costly, and requires a court order to avoid breaking GDPR rules.

“This is yet another example of the need for the UK to update its rules and introduce a single registration system, so authorities have the information they need to tackle bad actors and return housing to those in need.”

Prior to the pandemic, Kensington and Chelsea had more than 2,500 homes available on Airbnb – the most of any London borough apart from Westminster – and more than 800 rooms.

The law was changed in 2015 to allow short-term lets for up to 90 days a year without the need for planning permission.

But concerns have arisen about anti-social behaviour and a knock-on shortage of homes for local residents.

Earlier this month, the Scottish Government allowed Edinburgh city council to restrict short-term lets by requiring all new landlords to obtain planning permission.

The move by Kensington and Chelsea council is part of a wider crackdown on social housing fraud. There are more than 3,000 people on its housing waiting list.

Last month the council recovered four council homes from fraudsters, including a one-bedroom flat in Ladbroke Grove that was being sub-let to three tenants each paying £850 a month.

In another case, the tenant of a three-bedroom home in Knightsbridge was found to have lived in Turkey for the last two years.

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