September 6, 2016
Landlords with buy-to-let mortgages risk breaching their loan terms if they start using their properties for short-term holiday lets through Airbnb instead of renting them out to ordinary tenants, the lending industry has warned. A report by the Residential Landlords Association (RLA) noted a 27% increase in the number of London listings on Airbnb to 42,646 between February and June 2016. Of those, 61% were advertised as available for more than three months. The number of entire homes or apartments listed on Airbnb in London increased by 24% to 21,861 in June. Moreover, the RLA said 41% of all listings in June were ‘multi-listings’, meaning the owner had more than one property listed. Short-term holiday lets can potentially attract higher returns for landlords because the per-night price can be significantly higher than for private rents. The RLA said a rise in landlords using Airbnb threatens to make the country’s housing crisis worse….
Source: http://www.ibtimes.co.uk/landlords-switching-airbnb-lucrative-holiday-lets-risk-breaching-buy-let-mortgage-terms-1579792
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