Research commissioned by twelve Central London councils has found that there were 117,000 homes listed for short-term or holiday lets across London last year, which is the equivalent of one in 32 homes as more as more landlords switch to short-term lets.

Potentially illegal

The research, which was carried out by the Savills, found that many of them were likely to be illegal, with over half (52%) of short-term lets (STLs) in London let for more than the allowed 90 days.

And the problem was particularly acute in Westminster where Savills found that over 16,000 were STLs, 14,000 of which were whole properties rather than just rooms, which comprises around 40% of all the private sector rental stock.

We need to get the balance right so that Londoners can continue to live in the city they call home.”

In Kensington and Chelsea, STLs were at 35% and 25% in Camden.

Councillor Hug, who is leader of Westminster City Council, says: “Councils in central London are working hard to enforce existing rules, but both further regulations, including a licensing scheme, and greater resources are needed to address this growing problem.

“London is a global city with a thriving tourism industry, but we need to get the balance right so that Londoners can continue to live in the city they call home.”

Chris Norris, , campaigns and policy director at the National Residential Landlords Association, says: “The Government must recognise that the tax system discourages long-term investment in the private rented sector and persuades many that using their properties as short-term lets is their only option.

“Without pro-growth measures from the Treasury, such as providing mortgage interest relief and reforming stamp duty, we will see an increase in landlords turning to short-term lets.”

Read more about holiday lets.