Airbnb Inc (NASDAQ:ABNB, ETR:6Z1) faces a decline in the number of short-term lets available in the UK due to new plans proposed by Michael Gove, echoing similar rules brought in the US, Europe and Australia.
Hosts will need to receive planning permission before they can rent out short-term lets through property rental sites such as Airbnb, the new legislation stated.
It comes as the housing secretary hopes to protect both locals in seaside towns across the UK who are “being shut out of the housing market” and traditional B&Bs and hotels, which are losing customers to alternative rentals.
The government says the changes will “prevent a ‘hollowing out’ of communities, address anti-social behaviour and ensure local people can continue to live in the place they call home.”
Owners looking to rent out properties for more than 90 days must receive planning permission and sign up for a government registration scheme in order to ensure each site is safe.
A 90-day cap is already an agreed rule in London but other parts of the country do not. According to Inside Airbnb, the typical listing in London is rented for 46 nights a year, while for Manchester it is 63 and for Bristol it is 70 nights.
Amanda Cupples, Airbnb’s general manager for Northern Europe, said: “The introduction of a short-term lets register is good news for everyone.
“Families who Host on Airbnb will benefit from clear rules that support their activity, and local authorities will get access to the information they need to assess and manage housing impacts and keep communities healthy, where necessary.”
Last week, Airbnb reported a 17% year-over-year jump in revenue to US$2.2 billion during the fourth quarter, beating estimates of US$2.16 billion.
However, it reported a diluted loss per share of US$0.55 compared to earnings per share (EPS) of US$0.48 in the year-ago quarter and Wall Street analysts' estimates of US$0.67.