Families looking to rent homes are having to turn to Airbnb for long-term lets because there are so few properties available, estate agents have revealed.
Money Mail has seen messages from estate agents and tenants to Airbnb hosts about renting their holiday lettings for as long as a year.
And estate agents say they have seen desperate tenants track down Airbnb hosts on Facebook as they look for a place to live.
The number of homes available to rent has tumbled as landlords have quit the market
Landlords have been quitting the market in huge numbers due to soaring costs and stinging tax increases.
The number of homes available to rent has tumbled as a result, with property agent Zoopla last week saying there were a third fewer rental homes available compared with 18 months ago.
At the same time, the number of households looking for somewhere to rent has been rising.
Estate agents say soaring mortgage rates are forcing some homeowners back into the rental market, as they can’t afford to remortgage.
Meanwhile, others are renting for longer before buying as they wait to see what happens to shaky property prices, and some are simply unable to buy because of a lack of homes for sale.
Sarah Bush, of Cambridge-based estate agents Cheffins, says the Airbnb long-term rental market in the city has ‘hugely increased’ in recent months.
‘The strong Airbnb market in Cambridge is currently being fuelled by people wanting to rent long-term who can’t find a traditional landlord,’ she says.
‘Rental properties go within days of being listed online, we’re doing bulk viewings every 10 to 15 minutes and 70 pc of viewers make offers.’
London has a rule for Airbnb hosts which stops them renting out their home for more than 90 days a year, but across the UK people can stay as long as they like
Tenants have a number of protections through traditional renting that they do not have with Airbnb. For example, even under a ‘no-fault eviction’, where landlords can evict tenants without a specific reason, they must still give two months’ notice.
But if an Airbnb guest overstays their welcome or causes trouble, such as throwing a party, there is no obligation to continue hosting. The rules differ between England, Scotland, Wales and Northern Ireland.
Ms Bush says the lack of homes available means landlords are being more picky and are opting to take those willing to lock in for longer tenancies, leaving renters who need more flexibility out in the cold.
‘Cambridge is a fairly transient area, so we have a lot of people come through looking to stay less than a year including families,’ she says. ‘In the past it was possible to rent that way, but now those people are turning to Airbnb instead — and they’re willing to pay a lot more to guarantee a nice property.
‘People are contacting Airbnb hosts asking to do some sort of deal on the nightly rate if they agree to stay long-term, and people are contacting us asking for help with this.’
London has a rule for Airbnb hosts which stops them renting out their home for more than 90 days a year.
But across the rest of the UK, there is nothing to stop people staying in an Airbnb for as long as they like.
Dawn Hardiman, lettings coordinator at Richardson & Smith in Whitby, North Yorkshire, says the mine just outside Whitby attracts workers who need somewhere to stay and Airbnb bridges that gap.
‘People are going straight to Airbnb hosts to ask for long-term stays and they’re also coming to us, and then going to Airbnb when we can’t find them anywhere,’ she says.
‘There simply aren’t enough rental properties here.’
Ian Wyn-Jones, an estate agent in North Wales, says: ‘With the massive lack of rental properties available at the moment, we’re sending letters to Airbnb owners — as many estate agents are doing — encouraging them to consider long-term rentals.’
Landlords are being hit by a number of rising costs, including higher mortgage rates.
Meanwhile, stricter energy efficiency measures are soon to arrive while mortgage interest tax relief was fully abolished in 2020.
Mr Wyn-Jones says one local landlord with more than 50 properties in North Wales has decided to sell his entire portfolio.
‘There are simply not enough protections for landlords so there’s no incentive for them to stay,’ he says.
‘As a result, rental prices are going through the roof. A two-bed flat worth £600 a month a few years ago now goes for £1,000.
‘With people turning to Airbnb, they are going to be paying even more than that.’
In the past year, rental prices have risen 9.8 pc across Britain to reach £1,184 per month, according to HomeLet.
But experts warn tenants will end up paying far more through Airbnb than they would via traditional renting.
‘Airbnb owners can typically earn more through holiday rentals and won’t want to lose their income, so they won’t be willing to rent that cheaply,’ Mr Wyn-Jones says.
According to Zoopla, the average monthly rental income in Manchester is £977 while a typical nightly price for an Airbnb in 2021 was £89.54, according to All The Rooms.
Based on these calculations, a typical tenant in Manchester would pay around £11,724 a year but through Airbnb they would pay £32,682 for 365 nights — almost £21,000 more.
However, it is likely that those turning to Airbnb are negotiating a far more reasonable price.
