Home > News > AirBnb owners leave the market for long-term letting

AirBnb owners leave the market for long-term letting

Airbnb owners are leaving the market for long-term lettings following changes to the regulations in Scotland, according to a leading property firm.

DJ Alexander Ltd, the largest lettings and estate agency in Scotland, said that they had been approached by holiday lettings landlords wanting to shift to long-term residential letting because of costs and uncertainty over the introduction of more stringent regulations on operating through Airbnb and other short-term letting sites.

The new rules, which take effect this month for new properties entering the market and from April 2023 for existing lets, require landlords to apply for planning permission to operate a holiday let in Airbnb. This permission must be sought despite there being no guarantee of acceptance, so substantial fees and legal costs are incurred without any certainty that the property will be accepted.

One Glasgow landlord, who wished to remain anonymous, explained: “My feeling is that I am being forced out of the market by these new regulations. We are being asked to pay thousands of pounds to submit an application for planning permission when there is no guarantee that this will be approved and no clear guidance on how to comply with the new rules. It is also unlikely that planning permission will be granted in time as architects are telling me they won’t be able to look at this until January at the earliest.”

“My advisers have said that it is 50/50 whether my property will be accepted, and, for me, the financial costs don’t justify remaining in the sector. I never made an awful lot of money out of holiday letting, but I enjoyed it, and the property could be used by friends and family who wanted a place to stay in the West End of Glasgow. Moving to the long-term market will be financially beneficial and be less hassle, but I worry that the new regulations are going to permanently damage the holiday sector in the city and cause financial distress to those who work in tourism in Glasgow.”

David Alexander, Chief Executive of DJ Alexander Ltd, said: “We are seeing many landlords moving out of the holiday letting sector simply because of the uncertainty of the new regulations and the costs of implementing the Airbnb rules. However, this is welcome news for the long-term residential sector, which is at a breaking point with demand far outstripping supply.”

HICH LTD has continually raised the quality standards in the UK property survey market. Our multi-award-winning property survey service has made us the leading reference in the property survey market.

We offer property survey services of the highest quality. Using state-of-the-art equipment, we provide top-notch property surveys at affordable prices. Our prices are based on the number of rooms rather than the value of the properties, so you will always get the best value for money with our services.

Please look at our Trustpilot page and see why customers have chosen us as their favourite property survey provider!

At HICH LTD, we work to serve our clients and make the world a better place for everyone. We actively collaborate with NGOs to promote environmental, social and charitable causes. If you want to know more about our efforts or how you can help, contact us at hichinfo@aol.co.uk.

HICH LTD extends a warm invitation to contractors and service providers throughout the UK to join our network; by joining the Contractors and Service Providers Network, you will enjoy benefits such as a significant increase in customer flow, advertising on our high-traffic website, and direct contact with thousands of customers in your zip area. Find more information here or by following the QR code in the following video.