Will London be the Test Bed for STL Licensing?

London Renters Union have been campaigning for controls over the amount of short term lets allowed in the capital, as figures show that 1 in 32 London homes were used as a short term let in 2024.

Savills carried out a survey, which was commissioned by 12 London councils, which found that there were 117,000 properties listed for short-term lets in London last year.

Mr Vail from London Renters Union said: “While landlords get rich from this lucrative market, ordinary Londoners are forced to pay extortionate rents and face the threat of homelessness. The centre of our city is for everyone who lives here, not just tourists and the super-rich....“, he went on to say that the "Government must put renters first and crack down on the proliferation of short-term lets.”, as reported in Westminster Extra

Short term let landlords in London must get planning permission if they want to rent their property for more than 90 nights in a year period, with the data throwing up fears that many were renting their property illegally.

In Westminster borough alone there were over 16,000 STLs which provided an estimated income of approximately £450million a year, which equates to nearly 18% of the total private rental income in the Westminster area.

The councils in the central London area are working to enforce the existing rules, but there are fears that further regulation, including a suggested licensing scheme, similar to HMOs and more resources, are needed. Could this pave the way for stricter regulation on short term lets?