Owners of luxury homes in London turn to Airbnb as properties languish on market

Officials are cracking down on owners who exceed the 90-day rental limit

TRD MIAMI /
Mar.March 28, 2017 11:15 AM

From the New York website: Luxury homeowners in London are increasingly turning to Airbnb and similar sites as a quick way to make cash as their properties sit on the market.

One developer, for example, is charging 1,500 pounds ($1,868 a night) for an apartment in Hyde Park — listed for sale at a reduced 8.65 million pounds — in hopes of recovering some of the loss he’ll take when the property eventually sells, Bloomberg reported. The pound has dropped 16 percent against the dollar since the Brexit vote, leaving overseas buyers — who make up 41 percent of home purchases in London’s ritziest districts — with less to pay off their mortgages.

“Demand in the long-let market has not been very strong after the Brexit vote, but property owners need to maintain their profit,” Gao Xiang, president of JC International Property, told Bloomberg. “The price-to-rent ratio is far less than investors expect.”

Meanwhile, London Mayor Sadiq Khan and other officials are cracking down on properties that are exceeding the 90-day limit on short-term rentals. To qualify for year-round stays, homes must have the same planning approvals as hotels.

In New York, officials have similarly been cracking down on landlords running illegal short-term rentals. [Bloomberg]Kathryn Brenzel 


Related Articles

arrow_forward_ios
Opera Tower (Wikipedia, Airbnb)

Opera Tower condo association sues Airbnb amid short-term rental crackdown

Opera Tower condo association sues Airbnb amid short-term rental crackdown
An illustration f Mayor of Miami Beach Dan Gelber (Credit: Nicholas Hunt/Getty Images)

Miami Beach to allow short-term rentals in condos, hotels

Miami Beach to allow short-term rentals in condos, hotels
The appeals court \rejected Miami Beach’s petition to overturn a ruling that determined that the city’s exorbitant fines for short-term rental violators ran afoul of state law (Airbnb, iStock)

Miami Beach racks up another court loss over short-term rental enforcement

Miami Beach racks up another court loss over short-term rental enforcement
Rafael Serrano and 3098 Alton Road

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines
Miami Beach Mayor Dan Gelber (Credit: EVA MARIE UZCATEGUI/AFP via Getty Images)

Miami Beach shuts down short-term rentals due to coronavirus

Miami Beach shuts down short-term rentals due to coronavirus
Harvey Herndandez

Airbnb settles litigation with Miami development group alleging fraud

Airbnb settles litigation with Miami development group alleging fraud
Miami skyline (Credit: iStock and Wikipedia)

South Florida by the numbers: Super Bowl LIV Impact

South Florida by the numbers: Super Bowl LIV Impact
Airbnb operators cash In On Super Bowl LIV

South Florida Airbnb hosts cash in on Super Bowl LIV

South Florida Airbnb hosts cash in on Super Bowl LIV
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...