Where short-term lets are squeezing the UK housing market

Where short-term lets are squeezing the UK housing market

0:04 AM, 2nd August 2024, About 4 months ago 1

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New figures reveal a dramatic rise in short-term lets across the UK, with Hartlepool experiencing a staggering 122% increase in listings last year.

Blackburn and Tamworth also saw their short-term rental markets double in size, according to analysis by SFG20. There were also increases in Rochdale (89%) and Trafford (75%).

The organisation provides advice on building maintenance, and it says that Crosby saw a 17% decline – along with Scottish cities like Glasgow, Edinburgh and Aberdeen.

It analysed Office for National Statistics (ONS) data and says that the boom in short-term rentals is fuelling concerns about the affordability of housing for local residents.

Short-term lets available across the UK

SFG20’s product and professional services director, Paul Bullard, said: “With the recent surge in short-term lets available across the UK, saturating the property ladder, many local residents will be feeling the negative impact.

“As landlords snap up properties for short-term and holiday rentals, housing supply for long-term residents continue to dwindle, driving up both purchase and renting prices.”

He adds: “This trend prices many locals out of the market, making it increasingly difficult for them to become homeowners in their local neighbourhoods.”

Pitfalls of the short-term let sector

However, landlords are also being cautioned about the potential pitfalls of the short-term let sector – and the need to meet tightening regulations.

Mr Bullard said: “New landlords entering the short-term let market may be unaware of the stringent regulations governing property maintenance, safety standards, and tenant rights.

“Failing to comply with these rules can result in a series of damaging consequences.”

He says these include:

  • Financial penalties, at an average of £150,000
  • Lawsuits
  • Unexpected costs from reactive maintenance
  • Decreased property value
  • Increased insurance premiums
  • Rent revenue reduction
  • Reputational damage.

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Cider Drinker

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10:59 AM, 2nd August 2024, About 4 months ago

Many landlords switched to short term lets due to the unfair tax regime. Government plans to make the STL sector suffer the same unfairness. However, STL will remain an attractive option due to planned changes in the Renters Rights Bill.
Also, during the pandemic, whereas PRS landlords couldn’t evict non-payers, STL owners received grants of £10,000.
The rise of STLs is caused by governments (past and present).

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