Commonwealth—New research has revealed that more than half of short-term holiday lets in London are operating unlawfully, leading to mounting pressure on the UK government to intervene. A report by Central London Forward, a coalition of inner-city boroughs, found that over 50% of the 117,000 short-term rental listings across the capital in 2024 were let out for more than 90 nights per year, in violation of current regulations.
Under existing rules, homeowners in London can only rent out their properties on a short-term basis for up to 90 nights per calendar year, unless they obtain specific planning permission from their local council. Despite these restrictions, a significant proportion of landlords are breaching the rules, causing concern among local authorities, residents, and housing advocates.
The issue is particularly acute in areas such as the West End, Bayswater, Lancaster Gate, and Pimlico, where the density of unlawful short-term lets is highest. These concentrations are having a visible impact on local communities, contributing to noise disturbances, increased levels of waste, and fly-tipping. The strain on public services is growing, as councils are forced to respond to complaints, manage waste removal, and address pressures in the housing market.
The report noted that the proliferation of short-term lets in London has been dramatic over the last decade. In 2015, fewer than 30,000 such rentals were recorded. That figure more than doubled in 2016 to around 60,000 and peaked at over 100,000 in 2019. Although numbers fell sharply in 2020 due to the Covid-19 pandemic, the market has been steadily recovering since then, surpassing pre-pandemic levels by 2024.
The growth of short-term rentals is contributing to a shrinking supply of long-term housing, exacerbating London’s ongoing housing crisis. Private rents continue to rise across the capital, pricing many residents out of their neighborhoods. Simultaneously, enforcement teams are facing a shortage of resources as they strive to oversee and control a largely unregulated market.
One of the primary obstacles to enforcement is the lack of transparency from short-term rental platforms. The report highlights that many websites do not provide clear or accurate location data for their listings, making it difficult for councils to identify and track individual properties. Often, listings are intentionally vague, with addresses masked or inaccurately located a few streets away from the actual property.
This lack of clarity severely hampers the ability of planning enforcement officers to gather the evidence needed to pursue legal action against violators. Without precise data, councils are unable to enforce the 90-day limit effectively or hold property owners accountable for breaches of the law.
To address the growing problem, the report recommends that the government implement a national registration scheme for short-term lets. Such a scheme would require all hosts to register their properties, allowing councils to monitor activity and enforce regulations more efficiently. Additionally, the report calls for legislation that would compel rental platforms to share detailed, unit-level data with local authorities and government agencies.
The growing concern over unlawful short-term lets comes amid an ongoing housing crisis in the capital. With an estimated 65,000 households currently living in temporary accommodation, campaigners and officials argue that thousands of short-term rental properties should be converted back into long-term homes for rent or sale. Reintegrating these homes into the traditional housing market could provide much-needed relief for residents struggling to find affordable accommodation.
As London continues to grapple with housing shortages and affordability challenges, the pressure on national policymakers to act decisively is mounting. Local leaders and housing advocates are urging the government to take immediate steps to regulate the short-term rental sector, ensure compliance with existing laws, and support efforts to restore balance to London’s housing market.
