The Airbnb boom – How does it affect the property market?

 Airbnb is one of the worlds fastest growing companies, with London being the second biggest success story after Paris, but now there are concerns that this new way of living is a detriment to the future of the rental property market.

With so many property owners allegedly able to make more money from very short term lettings rather than long term leases, demand and the price for property in the rental market is pushed up substantially as landlords remove properties from the already stretched private rented sector and placing them into short-term lets in a trend that puts the rental market at risk.

The government did step in and demand Airbnb respond quickly and effectively to stop landlords turning badly needed housing effectively into unofficial hotels, so the house sharing site introduced a 90-day annual limit for London landlords.

It’s not just London that’s being affected by this either.

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As of this year, Airbnb enforced a rule in their policy stating a 90-day annual limit for London landlords.

Other famous destinations, such as Florence, are seeing one in five of its properties being listed on Airbnb, according to a report from the University of Siena. The similar situation also introduced a new issue for the locals in that retailers were looking to capitalise on the increase in tourists by affecting the price groceries and other essential, everyday items.

However, there is a belief that Airbnb and other house-sharing sites should be utilised to help boost local economies in less popular parts of cities and encourage people who live outside dense centers to list their properties. All of which could have a positive effect on local economies.

Featured Image credit: travelandleisure.com

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