Adam Hug

THE city council’s Labour leader has warned the secretary of state that a new regulatory system set up to clamp down on Airbnb-style short-term lets could end up “embedding the current status quo”.

Councillor Adam Hug has written to Michael Gove about legislation that the government says will bring an end to the unregulated chaos in the private rental market.

His concerns are that existing properties that are routinely rented out for short-term lets (STLs) will be exempt from tougher new rules due to take effect in the summer.

Cllr Hug’s letter said there should be “no amnesty” from the new need for STL homeowners to get planning permission and financial penalties needed to be imposed on all rule breakers.

He said the Conservative government risked “sleep-walking into an amnesty for existing unauthorised STLs that would undermine what we are seeking to achieve”, and added: “I urge you to work together closely to make the most of this opportunity where we can change the system for good, by promoting communities and a strong housing sector while supporting tourism in a better managed fashion.

“The alternative is a city where thousands of homes are permanently lost to intermittent use, for little or no community benefit (and often notable harm) and no effective register to track and enforce against irresponsible owners. Ultimately, it will drive yet more families out of Westminster and further damage the housing market at a time when we desperately need more suitable homes for local residents.”

The city council says it is investigating 2,400 potential short-term let “in­fringements” of the current 90-day rule from 10,500 rental properties in Westminster, an all-time high.

Cllr Hug’s letter said five tests had to be met including setting up a “comprehensive register, by the end of this parliament, of properties used as permanent short-term lets”.

The council needs to know how many properties were listed as Airbnbs before any new system of potentially requiring planning consent for STLs is introduced.

Cllr Hug said: “This would be particularly reckless, at a time when the council are investigating a record 2,400 properties which have been reported to us or actively identified as allegedly being used unlawfully for short-term letting. The idea these and many more could be legitimised, without scrutiny, when we have never had so many investigations into non-compliance, is entirely unacceptable.”

Measures to combat the housing crisis were announced earlier this year, including a mandatory national registration scheme for new short-term let landlords to require the council’s permission to host in their home.

Mr Gove said: “We know short-term lets can be helpful for the tourist economy, but we are now giving councils the tools to bring them under control so that local people can rent those homes as well.”

Under the Deregulation Act 2015, London homeowners can let out their properties for a maximum of 90 nights a year without a permit; those properties that breach the rule risk a £20,000 fine.

An Airbnb spokesperson said: “We have enforced restrictions on short-term lets in London for more than six years, partnering with local authorities to investigate and take appropriate action where there are concerns about a listing breaching London regulations.”