Campaigners have accused short-term let (STL) landlords of “hollowing out our city” after new data found one in 32 London homes were used as one in 2024.
Jae Vail, from the London Renters Union, said it was wrong for so many lets to be used as holiday homes while Londoners faced an “unprecedented” housing emergency.
It comes as new analysis by estate agents Savills, commissioned by a group of twelve central London councils, found that there were 117,000 homes listed for short-term let across London last year – an equivalent to one in 32 homes across the capital.
Responding to the research, Jae said: “While landlords get rich from this lucrative market, ordinary Londoners are forced to pay extortionate rents and face the threat of homelessness.
“The centre of our city is for everyone who lives here, not just tourists and the super-rich. Government must put renters first and crack down on the proliferation of short-term lets.”
Jae, whose campaign group advocates for better protection for tenants and more affordable housing in London, suggested if landlords do not want to make these properties available as affordable homes for renters then councils should be given the opportunity and means to buy them and convert them into social housing. Rob Anderson, director for research at Centre for London, a think tank, claimed STLs are acting as illegal private rental properties.
He said: “Data from the GLA estimates at least 1 in 10 short-term lets in the capital exceed the 90-day limit. The reality is likely to be far higher. But enforcing such legislative demands on short-term let landlords is near impossible with the size of the sector. Councils simply do not have the budget, nor the power, nor the personnel.”
Rob said STLs have a role to play in meeting London’s tourism needs and urged authorities to consider how legislation and investment in enforcement stop them becoming another factor in London’s housing crisis. Short-term lets refer to properties rented out for less than 90 nights per year. In London, those wanting to rent their home for more than 90 nights a year must get planning permission from their local planning authority.
Savills’ analysis found that over half (52%) of the short-term lets in London were let for more than 90 days, leading to fears that many owners may be breaking the law. This problem was particularly acute in Westminster City where there are over 16,000 STLs, with almost 14,000 being whole properties.
According to the council, over half of those are available for more than 90 days. The central London borough has enough STL listings to make up 40per cent of all private sector homes. In Kensington and Chelsea and in Camden, those figures are 35 per cent and 25 per cent respectively.
Income from STLs in Westminster City is estimated to be £450m a year, which is equal to almost 18 per cent of the total private rental income in the borough. Councillor Adam Hug, leader of Westminster City Council and chair of Central London Forward, said the STL market in central London was stopping Londoners from accessing affordable and secure housing and putting upward pressure on an already expensive private rental market.
He said: “In Westminster alone, there are over 16,000 short-term rentals which detract from permanent, secure housing for residents. Councils in central London are working hard to enforce existing rules, but both further regulations, including a licensing scheme, and greater resources are needed to address this growing problem.
“London is a global city with a thriving tourism industry, but we need to get the balance right so that Londoners can continue to live in the city they call home.” According to Savills, hosts with more than 21 properties own 24 per cent of the total share of STLs in London. London also has the least affordable housing with the average home costing 12 times the average salary, compared to 8 times nationally.
Chris Norris, campaigns and policy director at the National Residential Landlords Association, said the findings show a growing imbalance in London’s housing market. He said the shift towards STLs is a symptom of a broader supply crisis in the private rented sector, which has worsened in recent years.
Chris said: “The Government must recognise that the tax system discourages long-term investment in the private rented sector, and persuades many that using their properties as short term lets is their only option. Without pro-growth measures from the Treasury, such as providing mortgage interest relief and reforming stamp duty, we will see an increase in landlords turning to short-term lets.
“This will further reduce the availability of long-term homes for renters, exacerbating the supply issue and driving rents higher.” Private tenants in the capital also spend more – a third, or 35 per cent – on rent than their counterparts nationally, who spend roughly a quarter – 26 per cent. There are currently 300,000 London households on a housing waiting list while 175,000 – one in 50 – are homeless.
As a result, are having to put more funds into housing people in temporary accommodation which is impacting local authority budgets. There were around 3.79m homes in London in 2023, according to Statista.
