The government has been called upon to take decisive measures following research indicating that over 50% of short-term holiday rental properties in London are being operated illegally.

A report published by Central London Forward, a coalition of boroughs in the inner city, disclosed that more than half of the 117,000 short-term rentals listed across the city in 2024 were rented for over 90 days a year, violating existing regulations.

Adam Hug, the leader of Westminster City Council, remarked, “This high concentration has a significant impact on our local communities.”

A representative from the government stated, “We are planning to implement a registration system for short-term lets to reap the advantages of a flourishing tourism sector while safeguarding the character of our neighborhoods.”

Under current regulations, landlords in the capital are prohibited from renting their properties for more than 90 nights a year without obtaining planning permission from the local council.

During an address at the Centre for London think tank’s annual housing summit, Mr. Hug identified his borough as “at the heart of the issue,” with short-term rentals heavily clustered in areas such as “the West End, Bayswater, Lancaster Gate, and parts of Pimlico.”

He emphasized, “This situation can displace long-term residents, subjecting neighbors to considerable noise disturbances and issues related to waste disposal tied to short-term rentals.”

Moreover, he noted that the added strain on council services from managing waste disposal, addressing noise complaints, and handling increased pressures in the housing market contributes to the continual rise in private rental prices.

The report from Central London Forward, reviewed by the Local Democracy Reporting Service (LDRS), highlighted that the number of short-term rentals in the city has surged in the past decade.

In 2015, there were under 30,000 short-term lets in London, but this figure more than doubled by 2016 to 60,000, ultimately surpassing 100,000 in 2019.

The report indicated that the number of short-term lets dramatically declined in 2020 due to the Covid-19 pandemic but has since shown a steady recovery.

The report urges the government to mandate that short-term rental platforms “provide individualized, unit-specific data to local authorities and the government,” along with establishing a compulsory national registration scheme for this sector.

Mr. Hug stated, “Currently, local authorities struggle to enforce existing regulations effectively on a large scale.”

He pointed out that vacation rental websites often obscure the true locations of properties, listing them on streets close by without clarity on their exact addresses.

The Labour councillor mentioned, “This makes it exceedingly difficult for under-resourced planning enforcement teams to gather the evidence needed to enforce the 90-day rule in court.”

To improve regulation and empower local authorities, he stressed the necessity for the national government to take action.

The report received support from Tom Copley, Deputy Mayor for Housing under Sir Sadiq Khan, who highlighted the 65,000 homeless households in London living in temporary accommodation, stating, “We must reclaim those properties for long-term rentals or to be occupied by those who wish to buy and live in them as owner-occupiers.”

A government spokesperson told the LDRS that the growth of the short-term rental sector has been rapid in recent years.

They remarked, “While this can yield economic benefits for the economy and tourism sector, we recognize that having an excessive number of short-term rentals in a neighborhood can elevate housing costs and negatively affect local communities.”

To address this, they noted the abolition of the furnished holiday lets tax regime, which previously incentivized landlords to convert homes into holiday rentals.

“We are contemplating additional actions,” they added.