Concerns on the property ladder as short-term rentals dominate the market
Recent ONS data has revealed the UK areas worst impacted by an increase in short-term lets, with Hartlepool seeing the biggest change, as the area reports a 122% increase in listings from January to December 2023.
The analysis, conducted by the UK’s building maintenance standard, SFG20 also found that Blackburn and Tamworth reported an 100% increase in short-term rentals across 2023.
The Merseyside town of Crosby saw the biggest decrease in availability of short-term lets across 2023 with a 17% reduction in availability. Several Scottish areas such as Glasgow (10%), Edinburgh (8%), Argyll and Bute (3%) and Aberdeen (2%) saw a decrease.
Paul Bullard, Product and Professional Services Director at SFG20, the industry standard for building maintenance, said:
“With the recent surge in short-term lets available across the UK, saturating the property ladder, many local residents will be feeling the negative impact. As landlords snap up properties for short-term and holiday rentals, housing supply for long-term residents continue to dwindle, driving up both purchase and renting prices. This trend prices many locals out of the market, making it increasingly difficult for them to become homeowners in their local neighbourhoods.”
Paul also warns landlords of the potential financial and legal consequences of not focusing on maintaining their short-term lets in line with tightening regulations:
“New landlords entering the short-term let market may be unaware of the stringent regulations governing property maintenance, safety standards, and tenant rights. Failing to comply with these rules can result in a series of damaging consequences. These include:
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Financial penalties, at an average of £150,000
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Lawsuits
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Unexpected costs from reactive maintenance
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Decreased property value
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Increased insurance premiums
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Rent revenue reduction
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Reputational damage
