Major accountancy firm says don’t blame Airbnb

A report from accountancy firm EY has claimed there is ‘little to no relationship’ between the explosion in holiday lets in the UK and the current housing crisis.

The firm has said that Airbnb had instead added £5.7bn to the country’s economy in 2023 and that any Labour crack-down on holiday lets would be likely to damage the tourist industry.

One of the main means of controlling the growth in holiday lets is allowing councils to double or even triple council tax for them.

Criticised

As was reported in The Neg, however, the tripling of council tax for second homeowners in Pembrokeshire has triggered a mass sell-off and has been heavily criticised by local businesses.

And even though politicians from all sides have been busy blaming holiday lets for rising rents and house prices, EY’s report found that 95% of the rises in rents and house prices were down to other factors.

The accountancy firm says that in reality prices have simply risen in line with incomes and in most areas, Airbnb only accounts for around 0.5% of the housing stock.

There are places though, EY admits, where holiday lets have had an effect, such as in the Derbyshire Dales, Cornwall, Thanet, North Norfolk, and Kensington and Chelsea.

But as Airbnb told the Telegraph, the blame for the high prices lies with the lack of housebuilding by successive governments rather than short-let companies.

 EY is one of the largest professional services networks in the world.