Despite driving local tourism, property expert SmartMove claims UK Airbnb’s are reducing long-term housing stock and increasing private rents.
This article was provided by SmartMove.us – a movers organisation that was founded more than a decade ago.
June marks the beginning of British summer – a period where friends, couples and/or families start to think about holidays. With the rising cost-of-living, Airbnb’s have become more popular in recent years as they cost less to rent and often save people money because they allow for self-catering. However, while these types of accommodation are friendly to individual budgets, they’re far from ideal for the public purse.
In 2025, cities across the UK are ramping up regulations on Airbnb-style short-term lets as they grapple with housing shortages and the lasting impacts of the pandemic on tourism. To give context, the latest research from Centre for Cities shows the UK is currently facing a backlog of around 4.3 million homes.
Against this backdrop, this article explores how UK cities are working to combat the negative impacts associated with short-term holiday lets.
Rules from individual cities
While Airbnb’s cause chaos for locals looking to buy or rent homes in certain areas, they do help drive local tourism, which is important for our current economy. With this in mind, some cities have enforced their own rules.
London:
This year the capital city has introduced a strict 90-day annual limit on short-term rentals for entire homes. Hosts exceeding this threshold must obtain formal planning permission. The rule has been designed to curb the loss of long-term rental stock to the short-term market.
News of this rule couldn’t have come at a better time, as figures show that homelessness rates in London have hit record-breaking highs.
Edinburgh:
In 2024 Edinburgh introduced a city-wide tourist tax on overnight stays, including those in short-term rentals, aimed at funding public services strained by mass tourism. The council expects the tax to generate between £45 million and £50 million per year by 2028 or 2029.
Alongside this, the city council launched a crackdown on unlicensed short-term lets in early 2025, with several high-profile prosecutions for operating without appropriate licenses. The measures reflect Edinburgh’s dual focus on sustaining tourism income while addressing residents’ concerns about housing availability and neighbourhood disruption.
Brighton:
Brighton requires hosts to obtain planning permission for short-term rentals and mandates compliance with health and safety standards. In 2025, Brighton City Council increased enforcement actions, targeting unlicensed properties with fines and forced closures. Local community groups have called for further reforms to protect affordable housing.
Oxford:
The cathedral city has taken a strong stance against unauthorised short-term rentals, culminating in the closure of notable listings such as the controversial “Shark House” in late 2024. The city council cited breaches of planning permissions and licensing requirements, marking one of the highest-profile enforcement cases in the region. Oxford continues to review its short-term rental policies with a focus on protecting student housing and residential communities from displacement, with consultation processes underway for more comprehensive controls in 2025.
Cornwall:
In Cornwall, local MPs and councils have advocated for stricter regulations on holiday lets, responding to mounting concerns over the impact of second homes and short-term rentals on local affordability.
Proposals pushed forward in early 2025 include mandatory planning permission before converting properties into short-term lets and improved data sharing between rental platforms and authorities. Cornwall’s tourism-dependent economy complicates the balance between welcoming visitors and maintaining vibrant year-round communities, with ongoing discussions to refine policy frameworks.
Why it matters
The regulatory wave sweeping UK cities in 2025 signals a critical shift in how governments are prioritising long-term housing needs over short-term tourism gains. According to recent figures from Shelter UK, nearly two-thirds of workers in England struggle to afford private rent, highlighting the broader challenges in the housing market.
One of our property experts, Jes Johnson, put it the best: ‘As more UK cities tighten regulations on short-term rentals, the landscape for property owners and renters is rapidly evolving. London’s 90-day whole-home rental limit is a landmark policy aimed at preserving long-term housing supply, but enforcement remains complex given the diverse nature of hosts, from retirees supplementing income to investor-backed operators.
‘Similarly, Edinburgh’s tourist tax and Brighton’s crackdown on unlicensed rentals demonstrate how local governments are balancing the need to fund vital public services while managing the impact of mass tourism on communities.’
‘These efforts highlight a critical tension: while restricting short-term lets can help cool inflated housing markets, overly rigid policies risk pushing out responsible hosts and driving rentals underground,’ Jes continued. ‘It’s essential for cities to implement smart regulations that incorporate clear licensing requirements, health and safety standards, and distinguish between commercial investors and local residents. For example, allowing second-home owners to rent within reasonable limits while cracking down on large-scale operators can protect housing affordability and community character.
‘The ripple effects extend beyond housing. Short-term rentals contribute significantly to local economies. Average guest spending exceeds £250 per night in cities like London and Edinburgh, supporting cafes, cleaning services, and retail businesses. Blanket bans could disrupt these economic benefits, so the goal should be balanced policies that support sustainable tourism alongside housing equity.
‘In short, the future lies in nuanced, data-driven regulation that protects both residents and the economic ecosystems that short-term rentals help sustain.’
Photo by Andrea Davis via UnSplash
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