A new report has uncovered that more than 50% of short-term holiday lets in London are being operated illegally—flouting the 90-day annual rental limit—triggering urgent calls from local councils for tougher Government action. Central London Forward, a partnership of inner London boroughs, released the findings this week, warning that the current situation is eroding local communities and squeezing out long-term renters.
According to the report, the number of short-term lets in the capital has soared from under 30,000 in 2015 to over 117,000 in 2024—a staggering 400% rise. With the majority concentrated in just 12 boroughs, pressure is mounting on housing supply and infrastructure, prompting calls from council leaders and housing officials for national reforms to help curb what they describe as an increasingly unmanageable issue.
Illegal lettings draining the private rental sector
Westminster City Council leader Adam Hug was unequivocal: “More than 9,000 of the 16,000 short-term lets in Westminster are illegal. This concentration has a profound effect on our local communities, which can hollow out long-term residents, make neighbours subject to significant noise disruption and fly-tipped waste.”
At the Centre for London’s annual housing summit, Hug also highlighted the difficulties councils face in enforcement. “Holiday let websites frequently mask where the properties are, putting it on a street a couple of roads away, and not being clear what building it’s in to circumvent enforcement measures,” he said. “It means that hard-pressed planning enforcement teams are really struggling to build the evidence base to get the court to enforce the 90-day rule.”
While councils are sounding the alarm, landlords are facing the knock-on effects. Properties being removed from the long-term rental market have added upward pressure on rents and reduced the availability of decent housing for tenants. For compliant landlords, the playing field is increasingly uneven. They face tax burdens and regulation, while illegal operators enjoy inflated profits and virtually no scrutiny.
In Camden, for example, the report estimates that a one-bedroom flat could yield £1,072 per month on the traditional rental market—or £3,519 per month if let on a short-term basis for just 75% of the time. With that kind of disparity, it’s no surprise some landlords are tempted to game the system.
Real landlords call for fairness and enforcement
In Tower Hamlets, local landlord Seema Desai has grown increasingly frustrated with the situation. “I’ve been renting out two flats in Bethnal Green legally for nearly 15 years. I keep the rents fair, I look after the tenants, but we’re in a system that rewards non-compliance and punishes those who stick to the rules. If you’re going to regulate landlords, then you’ve got to enforce the rules across the board. Otherwise, what’s the point?”
Her sentiment is supported by Tom Copley, London’s Deputy Mayor for Housing, who labelled the current enforcement landscape as “completely inadequate.” He said: “Boroughs have an enforcement power that in practice they are unable to exercise.”
New rules could restore trust in the rental market
To level the field, the report recommends a mandatory national registration scheme for all short-term lets, legal obligations for platforms like Airbnb to share individual property-level data with councils, and more robust licensing systems—potentially allowing boroughs to limit the number of short-term lets in specific zones.
These measures are not just about cracking down—they’re about restoring order to a housing market that’s been skewed by inconsistent rules and limited oversight. A Government spokesperson has confirmed that “a registration scheme is on the way” and pointed to recent changes like the abolition of the favourable tax treatment for furnished holiday lets. But many in the sector argue that more urgent steps are needed.
